Election 2014: Sarasota County Hospital Board

By Observer Staff
| 4:00 a.m. August 13, 2014

Longboat Key
News

Sarasota County Hospital Board Central District
Seat 1

Joseph J DeVirgilio Jr.
AGE: 62

FAMILY: Married, one child

EDUCATION: Bachelor’s of engineering, Stevens Institute of Technology, and master’s of electric power engineering, RPI

OCCUPATION: Executive coach, Suncoast Management Consultants, and former utility executive, CH Energy Group

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital board trustees?
I have broad business experience in strategy development, pension plan investment, HR operations and quality improvement. I have 20 years of hospital board experience. I have been coaching executives for more than 10 years, helping them improve their effectiveness. I have 25 years of nonprofit board leadership experience.

Why do you want to be elected?
I believe I can continue to add value to the board’s deliberations and help drive the hospital’s strategic direction to meet the future health care needs of Sarasota County.

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
It should not limit expansions to just Sarasota County. Those who work in Sarasota County do not necessarily live here. To meet their needs, their health care delivery system should integrate with those near where they and their family live.
However, the tax dollars that are collected in Sarasota County should be and are restricted to providing services to Sarasota County residents. These tax dollars represent less than 30 days of operating expenses and do not contribute to these expansions.

If re-elected, what would you advocate the board adopt and implement?
I would continue to support the hospital strategic direction, including the charity care and expansion of care for the underserved residents of Sarasota County.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
The level of the tax rate will be evaluated based on the expected revenue to be generated in the new budget and our ability to maintain those programs targeted at the underserved, the charity care and community heath and our ability to upgrade the hospital technology and facility associated with the best hospitals in the country.

Will you support David Verinder as the new CEO? Why or why not?
Yes, I will support the new CEO. He is the best candidate to lead SMH to meet the health care needs of our community.

Michael A. Sutphin
Age: 67

Family: Divorced, two adult children, five grandchildren

Education: Attended the Ohio State University

Occupation: Semi-retired; small-business owner in the residential construction and inspections industry

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital board trustees?
Ethical character, respect for tax dollars and desire to pursue the truth. I am the only candidate who is former employee, and this year I have been a regular attendee at most of the public board and committee meetings as a concerned citizen to learn and better understand what goes on and how decisions are made. So, I suggest that I do have some unique knowledge of SMH from an insider’s perspective.

Why do you want to be elected?
To pursue and demand from the SMH administration and board members:

1. Truthful transparency and clarity, prudent and responsible decision making and future accountability in all matters, especially financial.

2. Respect and more respect for w the taxpayers’ money, which continues to be used for arrogant spending and expansion at our community hospital.

3. Full compliance with state of Florida Sunshine laws.

4. Prevention and elimination of the secretive, toxic management culture toward the many current and past quality employees.

Does it have anything to do with privatizing the hospital?
Whether I want SMH to be privatized is not important. What is important is that SMH, our community hospital, must be better managed, like a professionally managed private hospital business, not like a Detroit-style government piggy bank. So, yes, SMH may need to be privatized, and, please understand, this will likely occur because of the arrogant expansion during the last 10 years has saddled we the people taxpayers with a long-term debt problem.

Many of these poorly considered and arrogant “community investments” are money losers and have also insulted many legitimate health care providers in nearby areas.

My opinion is that many of these projects will not stand up to standalone honest transparent pro forma financial analysis. How much longer do we the taxpayers want to pay $46 million per year?

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
Heritage Harbour is probably the worst example of the above mentioned poorly considered and arrogant “community investments.” The real reason for this money-losing project was that former CEO Mrs. MacKenzie wanted to poke her finger in the eyes of other health care providers such as Manatee Memorial and Lakewood Ranch. Now Sarasota County taxpayers are paying every month.

If elected, what would you advocate the board adopt and implement?
Sutphin project goal: to pursue more cost-effective quality care for all, including some of our less fortunate citizens and veterans. Perhaps through VA vouchers, a venture with the SMH Community Medical Clinic (CMC) or through some faith-based joint venture, as Sarasota Jewish and Christian communities are indeed very generous.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
Current millage is excessive. How much is $46 million per year? We the taxpayers of Sarasota have paid taxes to SMH:

1998 – 2003, average $10 million per year

2006 – 2013, average $46 million per year

The recent eight-year year is a 460% dollar increase with a millage rate increase of 290%. That does not include county tax exemptions for SMH property, nor state and federal funds and grant money.

Will you support David Verinder as the new CEO? Why or why not?
David Verinder is an intelligent and good man. He has done a good job sloshing in the quicksand at SMH. David has unfortunately been overshadowed by Mrs. MacKenize and her rubberstamp board, and he has not been well served by some of the MacKenzie minions.

However, his time to shine as a true leader is now. He can be the one who saves SMH but he must pursue a strong fiscally conservative agenda.

I suggest he needs to address with great clarity and public transparency the current SMH strategic plan and to be wise and strong enough to make necessary changes.

I hope he achieves legendary status. Forty-six million dollars per year is way too much.

Sarasota County Hospital Board Northern District
Seat 1

Stefan Butz
• AGE: 47

• FAMILY: Married with three children

• EDUCATION: Bachelor’s degree, University of South Florida

• OCCUPATION: Hearing aid specialist with All American Hearing

• What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital district board members?
In his book “Making a Difference,” Howard Berman lists seven necessary qualities to be an effective board member. I agree with his assessment:

Integrity: Zero tolerance for unethical behavior, both for themselves and colleagues;
Independence: Having no business, financial or personal relationships — or hoped-for relationships — that create even the perception of a conflict of interest;

Mature confidence: Speaking out and actively participating in board and committee deliberations;
Corporate manners: Recognizing the difference between productively participating in discussions and counterproductively dominating deliberations; the ability to work with other board members to create workable compromises;

Sense of context: Making relevant, informed comments focused on the specific aspect of the issue being considered;

Courage: Willingness to do the right thing, even if it is difficult or unpopular;

Commitment: Understanding that being an effective board member requires time, heart and standards.

• Why do you want to be elected?
As a current elected official, I have served our community over the last 16 years with an emphasis on doing the right thing and being a champion for the people as a fiscal conservative. As a local health care provider, every day I witness the struggles and difficult decisions people make about their health care. It is imperative that we strive to improve our world-class health care system while taking steps to make it more accessible and affordable to all. I believe my background as both a conservative elected leader and a local health care worker would benefit the hospital and our entire community.

Does it have anything to do with privatizing the hospital?
Yes, it’s my opinion that the entire Sarasota Memorial Health Care System should remain public, and I will work to ensure that it remains a public institution. Not-for-profit hospitals provide a community with medical services that are relatively unprofitable. SMH plays an important role in providing a complete range of services to the broad community, services that would not be provided otherwise.

• Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
I would support centers where there is true a community need, because centers give citizens access to urgent care and relieve some pressure on the hospital’s emergency room. However, the public’s interest is not served when tax dollars are spent duplicating services that are readily available from outside groups and doctors. So, I would question any future expansion plans carefully, taking into consideration the role of a public hospital as a true safety-net hospital.

• If elected, what changes would you advocate the board adopt and implement?
Over the next four years, I believe that financial uncertainty will be the biggest challenge. It’s no secret that the entire health care sector is in a period of upheaval, and without the expansion of Medicaid here in Florida, funding for unmet costs will decrease while the volume of uncompensated care continues to increase. It will be the board’s responsibility to stay ahead of the uncertainty by being fiscally conservative and good fiscal stewards of our tax dollars.

• The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
I support the current rate and would vote accordingly. Increased property values will provide additional revenue to the hospital to help it meet the challenging funding needs. The hospital should continue to work within those constraints.

• Will you support David Verinder as the new CEO? Why or why not?
I will support whoever has the best, most conservative abilities for CEO.

Richard Merritt
• AGE: 67

• FAMILY: Married; two daughters, four grandsons

• EDUCATION: Bachelor’s of Science degree, University of Notre Dame; MBA, Southern Methodist University

• OCCUPATION: Retired: 37 years, automotive business; 24 years, president/owner Sterling Ford L-M, in Sterling, Ill.

• What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital board trustees?
Six years as a board member of Sarasota Memorial Hospital, immediate past board chairman, current finance committee chairman; 24 years as a board member of CGH Medical Center, in Sterling, Ill.; served two terms as chairman, three terms finance committee chairman. Terms were three years.

• Why do you want to be elected?
I want to continue to implement the Strategic Plans and Initiatives that the current experienced board has helped to develop over the past several years. Exciting future plans include a new rehabilitation facility, increasing the number of primary care physicians and the implementation of population health, which is a concept that is occurring across the nation.

• Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
There are no tax dollars going to or operating our health care center at Heritage Harbour. SMH is prohibited by law from using any tax dollars outside of Sarasota County, as is clearly stated in the enabling legislation that forms the hospital district.

• If re-elected, what would you advocate the board adopt and implement?
Continue to adopt and implement the Strategic Plan that is updated yearly. This is a very comprehensive process that involves many departments and constituents, including medical staff, clinical staff, department heads, administration and the board. As witnessed, this process has worked exceedingly well the last few years.

• The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
The annual budget retreat takes place yearly at the end of August before the final millage rate is set in September. At this meeting, the operating and capital budget requests are discussed and analyzed. A recommendation is then made to the board for final budget approval. It is a process that is very extensive and relies on not only the strategic plan but input from all constituents within the system. The final millage rate will then be set to either remain the same or decrease.

• Will you support David Verinder as the new CEO? Why or why not?
As an incumbent, I was a member of the board that voted unanimously to appoint David as the new CEO on July 25. David has been an integral part of our development and achievements in all areas both clinically and financially over the past several years. We look forward to continued success under his leadership.

Sarasota County Hospital Board Northern District
Seat 2

John (Jack) Brill

AGE: 52

FAMILY: Married for 29 years to Antoinette; children Vickie and Johnny

EDUCATION: Bachelor of Science in business administration, Old Dominion University.

OCCUPATION: Vice president of business development with Metz Culinary Management, a culinary dining and environmental services company that specializes in the health care and education industries

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital district board members?
As a professional, I have been involved in the health care industry for the past 20 years and in the foodservice industry for more than 30 years. My experience includes developing and building divisions within different parts of the United States. My familiarity with managing employees, being involved with profit and loss responsibilities including managing more than $140 million in client sales while increasing sales revenue approximately 17% on an annual basis.

My unique understanding of the health care industry and the challenges it will be facing as the Affordable Care Act (ACA) continues to be implemented is an attribute I bring as a candidate. Today, existing Medicaid and Medicare reimbursement rates to hospitals do not cover the full cost of care. As a result of the ACA, hospital reimbursements for these programs continue to decline. The impacts for SMH will be approximately $9.4 million in 2014 and $15.6 million in 2015. SMH provides a significant amount of charity care but will continue to face these challenges while caring for some of the 58,000 uninsured residents in Sarasota. I have a unique understanding of the challenges facing SMH as they continue to diversify services and create new offerings in an effort to reduce patient cost, which is why I am running.

Why do you want to be elected? Does it have anything to do with privatizing the hospital?
I wish to position SMH for success and growth in the ever-changing health care landscape so it can continue to provide the highest quality of care for our patients and community.

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
To answer that question properly, I would review the specifics of Heritage Harbour. Several questions first come to mind such as what percentage of the patients are from Sarasota County? And does the facility service an area that has a deficit in health care?
My preference would be to increase services and facilities within Sarasota County first. Our county includes areas such as North Port, which should be a priority for additional services.

If elected, what changes would you advocate the board adopt and implement?
If elected, I believe that speaking with each stakeholder, e.g. staff, management and taxpayers, would be the first step to seeing what changes are needed and if they can be sustained. Any changes that are suggested would have to be beneficial for the hospital to succeed in a changing health care arena.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
I support the current rate. SMH has shown great fiscal responsibility with the current 1.08 millage without asking the taxpayers for an increase in the last four years. SMH has continued to serve our community while navigating a challenging economic environment. If possible, I would like to continue to be highly efficient using taxpayer dollars and lower the millage rate if the hospital is able to maintain the current level of care at a lower cost.

Will you support David Verinder as the new CEO? Why or why not?
I fully support David as the new CEO of SMH. I look forward to his continued excellent leadership for our community.

Sarasota County Hospital Board Southern District
Seat 1

David Garofalo
AGE: 37

FAMILY: Long-term relationship; two children

EDUCATION: Hillsborough Community College (EMT and fire certificate); Pasco Hernando State College (paramedic and EMS); state-certified officer 1; state-certified real estate agent

OCCUPATION: Fire captain/paramedic for Pasco County Fire Rescue (1998 to present); former North Port city commissioner (2008 to 2012)

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital district board members?
While serving on the North Port City Commission during the Great Recession, we were able to keep a reasonably low millage rate while maintaining an elevated quality of life for our residents. We were also able to increase economic development by giving incentives like eliminating/reducing impact fees.

Why do you want to be elected?
I have been a public servant and involved in health care for my entire adult life. While serving as a Ccommissioner it gave me the opportunity to be the voice of the people on their issues. There was not an email or a phone call during those four years that went unanswered. I believe if you are going to be the voice of the people, you, at the very least, have to hear what they are saying.

Does it have anything to do with privatizing the hospital?
Absolutely not. This is a nasty rumor that was started by either the incumbents or supporters of the incumbents.

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
Just like in city government, the hospital board must first and foremost do what is in the best interest for its own residents/patients, and while doing so it must also be treated like a business. If there is a need and that need is being met by supplying those services to the residents and as long as we are not losing money then I would still support SMH operating in Manatee County. That being said, I would make sure that this was watched even more carefully and that transparency was of the utmost importance and that our Sarasota County residents were kept in the know as much as possible.

If elected, what changes would you advocate the board adopt and implement?
I believe South County is in need of a full-service public hospital. The emergency room was a good start, but services such as OB/GYN, mother/baby, stroke and cardiac centers are needed. It has been said the reason that a hospital is not built yet is due to the fact that there are not enough doctors in South County. Sarasota Memorial Hospital has been trying to build its doctor base in South County with little to no success; I believe if we add more incentives we can accomplish this. Also, because Sarasota Memorial Hospital is a countywide hospital, I would advocate for at least two or three meetings a year of the board to be held in South County.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
There are many ways to evaluate if your millage rate is appropriate, but one of the most precise ways is to see if we are losing money. Now, if we are losing money does this mean that we will only look at the millage rate, absolutely not. The budget is not a yearly thing but rather a daily task that should be watched to see where we can save money by being more efficient. Being a No. 1 award-winning hospital comes with a cost. It is our job as board members to maintain that distinction while keeping the millage rate reasonable.

Will you support David Verinder as the new CEO? Why or why not?
I absolutely support Mr. Verinder, and I have an already established relationship with him. He was there for the opening of the North Port emergency room, and while I was a commissioner we had an excellent working relationship. When the board hired Mrs. MacKenzie the vision was to have her bring a staff under her together that could eventually lead the hospital. This is what has happened here, and I think the board made an excellent choice with the only exception being that he is an LSU alumni, but we won’t hold that against him too much.

Darryl Henry
Age: 69

Family: Married with two sons and one grandson

Education: Bachelor’s degree, University of Maryland; four semesters of medical classes at State College of Florida as a non-degree-seeking student

Employment: Retired; served 25 years in the Department of Defense, followed by four years as CEO of International Interoperability Initiatives

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital district board members?
My career prior to retirement included administrative and managerial experiences, as well as financial responsibilities that uniquely prepared me for the seat on the board, particularly the budget and audit portion of my responsibilities. In leading the Joint Warrior Interoperability Program for the U.S. Department of Defense, I worked with representatives from dozens of nations and supervised many individual programs. I was direct supervisor of more than 150 military personnel, civilians and contractors and administered an annual budget of more than $43 million. After retiring, I was CEO of my own company, so I am no stranger to making tough decisions or dealing with complex personnel issues.

Why do you want to be elected?
Re-election to the hospital board would allow me to continue my efforts to expand the services offered to all residents of our county. During the past four years, we have added four urgent care centers in south, north and east county, but that is only a start. Specifically, North Port needs a hospital, and other areas of the county, such as Englewood and Siesta Key, are currently underserved and need facilities. SMH is beginning a project to upgrade our current rehabilitation services. I want to see that project through to its finish. Additionally, I want to help with the renovation of existing facilities so that every patient gets the best experience possible. I have a deep commitment to SMH and, in particular, the wonderful staff.

Does it have anything to do with privatizing the hospital?
I am absolutely opposed to privatizing the hospital. Sarasota Memorial Health Care System should dedicate itself to providing facilities for all its residents.

If elected, what changes would you advocate the board adopt and implement?
The rehab facility, a hospital for North Port and health care facilities in currently underserved areas are three things I would advocate. I would continue existing policies, especially those that recognize and reward our employees.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
The entire board spends countless hours evaluating the financials and poring over proposed budget items. Budgeting is always a delicate balancing act of weighing the cost of health care against the ability of its citizenry to pay the tax. In the 2014 fiscal year, $42.1 million in tax revenue was collected and was used in part to support emergency care, psychological services, obstetric services and neonatal care. However, county taxes collected amount to only 7% of the current budget. Our financial staff is without equal: Bill Woeltjen, our CFO, and Mark Thornton, director of audit services, are always incredibly well-prepared and are experts in their respective fields. The combination of time on task and advice from unquestioned experts make me confident that our board’s decisions about the tax rate will be in the best interest of the people of Sarasota County.

Will you support David Verinder as the new CEO? Why or why not?
I did, indeed, vote for David Verinder as the next CEO, and he was unanimously selected. He was interviewed and screened by four separate selection committees and received their unqualified recommendations. Having worked with David for four years, I felt he was the best person for the job.

Sarasota County Hospital Board Southern District
Seat 2

Gregory Carter

AGE: 66

FAMILY: Married

EDUCATION: U.S. Army Corp of Engineers

OCCUPATION: Retired AT&T engineer

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital board trustees?
Three-term (12 years) board member; former chair of finance, audit, mission and planning committees; former chairman of the board; current chair of mission and planning committee; current first vice chairman of the board.

Why do you want to be elected?
To continue to contribute to the community by working for the success of this premier health care system as a member of the governing body. I want to support our mission to be the best community hospital system as we navigate the changing health care landscape.

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
SMH should operate facilities where services are needed. Many patients come from Manatee, Desoto and Charlotte counties as well as other states and Canada. This brings in revenue from outside the area as patients seek out the best care for themselves. With this additional outside revenue we are able to direct property taxes toward indigent care for the community.

If re-elected, what would you advocate the board adopt and implement?
We will continue to focus on highest-level quality measures and implement the construction of a new rehab facility.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
We will review budgeting and financials in our financial committee along with projections for the coming year to determine the millage rate.

Will you support David Verinder as the new CEO? Why or why not?
David has my absolute support. He brings knowledge from his previous experiences in finances and operations and has excelled as CFO and COO at SMH. He has the support of medical staff, management, physicians and the board.

Lydia Tower
Age: 67

Family: Husband, Fred; two sons, Chris and David

Education: Associate of science degree in nursing, Triton College

Occupation: Semi-retired; working in perioperative services at Fawcett Memorial Hospital in Port Charlotte

What special attributes and skills do you have that make you qualified to oversee the financial stewardship required of hospital district board members?
I am a registered nurse with 35 years’ experience in the O.R. and related services. Half of my career I have been employed by nonprofit hospitals. I have seen both sides of the equation and understand, regardless of hospital status, it must be profitable to stay in business. There is a looming threat currently in regard to hospital-acquired condition and Medicare reimbursements. Sarasota Memorial Hospital is currently unacceptable and could impact the bottom line. Patient safety, if compromised, can be costly to SMH.

Why do you want to be elected? Does it have anything to do with privatizing the hospital?
I am seeking election to lend the patient care perspective as a board member. The privatization issue in my estimation is a fabrication and scare tactic by outside parties to assure the election of the incumbents. Privatization of SMH will never happen or be allowed to happen. Sarasota County needs this safety net institution, SMH. Prime examples are indigent care and the only neonatal intensive care unit in the area.

Sarasota Memorial operates a health care center in Heritage Harbour in Manatee County. Given that Sarasota Memorial collects property taxes from Sarasota County property owners, what is your view on where Sarasota Memorial should operate facilities? Should it limit itself only to Sarasota County? Why or why not?
Smart board decisions include smart growth even outside of county borders. The Heritage Harbour Health Center is a profit-generator for SMH while providing needed services for that area. Profit centers offset the need for additional tax dollars. A comprehensive outpatient center such as this would be ideal for North Port.

If elected, what changes would you advocate the board adopt and implement?
Expansion of services to meet the growing needs of underserved North Port, Sarasota County’s largest city, with the future plans for a hospital. More attention needs to be focused on mental health care, otherwise society will continue to pay a high price.

The county hospital tax generates $40 million a year in income for the hospital. How will you evaluate whether the 1.08-mill property tax is enough or not enough?
The current mill of 1.08 has been held down for the past five years all through the recession. Current rising property values should continue to be adequate and possibly reduced as more and more individuals acquire insurance, therefore decreasing indigent-care expenditure. If the above holds true, a rollback may also be appropriate.

Will you support David Verinder as the new CEO? Why or why not?
David Verinder is highly regarded and fully supported by the board. He has demonstrated the leadership and knowledge for his position as CEO, and I agree with its decision.