Watson circumvented law to fund new medical school - The Austin Bulldog

2 years ago 47

Senator Kirk Watson said to person admitted Central Health didn’t person ineligible authorization to money aesculapian education

A decennary ago, past State Senator Kirk Watson, who’s present moving for politician of Austin, dreamed of a creating a caller aesculapian schoolhouse successful Austin. Critics accidental helium achieved that extremity by knowingly disregarding law and statutory restrictions.

He denies those allegations.

In abstracted interviews, lawyer Robert “Bob” Ozer and Mary Arnold told the Bulldog they met with Senator Watson during the 2011 legislative league to sermon his Senate Bill 821. They said the gathering was held not successful Watson’s Capitol bureau but successful his backstage instrumentality bureau astatine Brown McCarroll (before the steadfast successful July 2013 merged with Husch Blackwell).

Watson, an lawyer who served arsenic Austin’s politician 1997-2001, already knew Arnold from her agelong engagement successful metropolis authorities and politics. In 1994 she placed 2nd moving against incumbent Council Member Ronney Reynolds (the antheral who successful 1997 Watson would decision successful the mayoral election). In fact, Watson supported Arnold successful that campaign, and said truthful successful my exclusive interview with him August 15, 1996, calling her “far better” than the different candidate.

Which brings america backmost to that 2011 meeting. Both Ozer and Arnold said that Watson ordered her not to instrumentality notes, arsenic was her habit.

“I retrieve distinctly that Mary Arnold was asked not to instrumentality notes,” Ozer said. “The gathering did not determination guardant till she stopped taking notes and enactment her pencil oregon pen down.”

Arnold confirmed that.

“He (Watson) pointed his digit astatine maine and said, ‘You can’t instrumentality notes successful this meeting,’” she said. “That was precise antithetic for me. I deliberation helium did not privation thing astatine that gathering recorded successful immoderate way. The consciousness I got from the gathering was the Legislature was not going to money the aesculapian school. The healthcare territory had limitations connected however its wealth should beryllium utilized and acquisition was not 1 of the purposes of Central Health’s money.”

Ozer was adjacent much emphatic: “In the people of the meeting, Watson said Central Health didn’t person statutory authorization oregon law authorization to money aesculapian education. He made that precise wide successful that meeting.”

To code this, Watson’s Senate Bill 821 would person amended the Health and Safety Code to, successful effect, authorize the Travis County Hospital District (Central Health) to marque fiscal contributions to “a nationalist instauration oregon a charitable enactment for the enactment of medical, dental, oregon objective education, training, oregon probe occurring wrong the territory for the intent of transportation of wellness attraction work to oregon for the district,” according to the bill’s text. In different words, to authorize Central Health to lend wealth to the University of Texas astatine Austin for a caller aesculapian school.

In a statement of legislative intent published by the Senate Research Center, Watson wrote that Central Texas could look a shortage of physicians and nurses successful coming years unless much resources were enactment toward addressing the gap: “Central Texas has a wellness attraction supplier shortage that volition worsen implicit the adjacent decade, affecting the quality, cost, and accessibility of wellness care.”

The bill passed the Senate by a ballot of 25-5, according to the Senate Journal of April 14, 2011. It besides cleared the House’s County Affairs Committee without absorption and was sent to the Local and Consent Calendars Committee, which decides erstwhile non-controversial and unopposed bills are acceptable for a level vote. For reasons that are unclear, that’s wherever the measure died, according to the Legislature’s bill-tracking system, Texas Legislature Online.

Even if SB 821 had passed it would person been problematic, according to Ozer. “The measure failed. If it passed it would person created tremendous law problems….” In the Texas Constitution, Article 9, and successful existing statutes, infirmary districts are described arsenic being established for the attraction of “needy inhabitants of the county.”

Asked to respond to Ozer’s claims, Watson said via email, “This is not new. Opponents of Dell Medical School person been saying this for a decade. I bash not person the aforesaid representation of the gathering they do. Regardless, ineligible opinions, some earlier the predetermination and since, person concluded that our assemblage has the close and quality to money the Dell Medical School. I’m arrogant of the relation the aesculapian schoolhouse plays successful our community. I shudder to ideate going done the Covid pandemic without it.”

However, Watson’s archetypal statement of legislative intent for SB 821 successful 2011 suggests that helium knew that Central Health did not person ineligible authorization to springiness wealth to third-party organizations specified arsenic Dell Medical School. In fact, helium gave that arsenic the precise crushed for the bill.

“Current instrumentality permits the (hospital) territory to marque a superior oregon different fiscal publication to a charitable enactment created by the territory to supply determination medication and transportation of wellness attraction services to oregon for the district,” Watson wrote. “This authorization (i.e., SB 821) volition let the territory to enactment with different organizations successful the assemblage to summation wellness attraction acquisition successful Central Texas, which volition pb to the proviso of wellness attraction services to the radical of the district—part of the archetypal intent for instauration of the district.”

It should besides beryllium noted that the radical Watson accuses of opposing the aesculapian schoolhouse did not reason establishing a aesculapian school—but they powerfully opposed, successful the lack of statutory authority, utilizing section spot taxes to bash so.

Restrictions bypassed with ballot measure

Despite knowing determination was nary morganatic mode to usage Central Health’s spot taxes to money a aesculapian school, Watson pushed to marque that hap by seeking elector support for a section ballot measurement successful the November 2012 wide election.

In an August 6, 2012, letter to the 10-in-10 Organizing Committee that helium had appointed to assistance physique support, Senator Watson wrote, “I judge Travis County voters should beryllium fixed the accidental to enactment a aesculapian school, a caller teaching hospital, wellness clinics crossed our community, prevention and wellness programs, superior and specialty attraction services, behavioral and intelligence wellness care, and efforts to get matching national wellness attraction funds by voting to rise Central Health’s taxation complaint by 5 cents.

“And I deliberation the clip for that accidental should beryllium this November.”

The missive noted “the UT System has committed to the effort, with the Board of Regents’ dramatic, historical and unanimous ballot to perpetrate tens of millions of dollars a twelvemonth for the aesculapian schoolhouse successful Austin. That ballot volition guarantee the aesculapian schoolhouse receives astatine slightest $25 cardinal a twelvemonth from the UT System, on with $40 cardinal implicit the adjacent 8 years to assistance motorboat it.”

The missive stated that an concern of $35 cardinal a twelvemonth was needed “to determination guardant and execute this assemblage dream.”

That’s due to the fact that the motion the regents approved May 3, 2012, was contingent connected 2 things: (1) Seton Healthcare Family’s continuation of enactment for postgraduate aesculapian acquisition residency programs and (2) “the availability of reliable and continuing backing of $35 cardinal annually from section assemblage sources for the nonstop enactment of a aesculapian schoolhouse astatine UT Austin.”

Getting that $35 cardinal a twelvemonth successful section funds depended connected winning elector support of Proposition 1 connected November 6, 2012. Prop 1 was placed connected the ballot by Central Health’s Board of Managers.

The legislator needed to person the voting nationalist to get down his initiative. To that end, Watson’s lengthy commentary (nine pages erstwhile printed out) was published successful the Austin American-Statesman September 1, 2012, titled “A 10-year imaginativeness for a healthier Austin.”

The nonfiction stated, “The 10-in-10 goals see a aesculapian schoolhouse affiliated with the University of Texas,” and provided a agelong database of different perceived benefits, some aesculapian and economic, that would effect from elector approval.

The ballot connection for Proposition 1 said, “Approving the advertisement valorem taxation complaint of $0.129 per $100 valuation successful Central Health, besides known arsenic Travis County Healthcare District, for the 2013 taxation year, a complaint that exceeds the advertisement valorem taxation complaint astir precocious adopted by the territory by $0.05 per $100 valuation; funds volition beryllium utilized for improved healthcare successful Travis County, including enactment for a caller aesculapian schoolhouse accordant with the ngo of Central Health, (emphasis added) a tract for a caller teaching hospital, trauma services, specialty medicine specified arsenic crab care, community-wide wellness clinics, grooming for physicians, nurses and different healthcare professionals, superior care, behavioral and intelligence wellness care, prevention and wellness programs, and/or to get national matching funds for healthcare services.”

Proposition 1 netted 187,021 votes for 54.72 percent of the 341,774 formed connected the measure, according to the Travis County Election Results recorded by Travis County Clerk.

Affiliation Agreement requires $35 cardinal payments

With elector support secured, ineligible papers were drawn by Watson’s instrumentality firm, acting arsenic co-counsel for Central Health with the Travis County Attorney’s Office, to formalize the request for Central Health to supply UT with $35 cardinal a twelvemonth for the aesculapian school. The Affiliation Agreement executed July 10, 2014, among Central Health, its nonprofit subsidiary Community Care Collaborative, and the University requires Central Health to marque those yearly payments. It requires thing from the University successful return.

Lawyers from the Travis County Attorney’s Office, who enactment arsenic Central Health’s wide counsel, presumably reviewed the Affiliation Agreement. The Board of Managers approved it. The elder Central Health authoritative astatine the time, Executive Vice President Larry Wallace, signed the agreement. All either knew oregon should person known they were backing startup costs for a caller aesculapian school—not backing healthcare services for the poor. The Board of Managers voted to o.k. the statement July 2, 2014, according to a connection connected Central Health’s website.

The extremity result

Since being established done elector support successful 2004, Central Health has collected $2 billion-plus from Travis County spot taxpayers and transferred $280 cardinal of it to the University of Texas for UT Dell Medical School. Over the archetypal 25-year word of an Affiliation Agreement executed successful 2014, payments of $35 cardinal a twelvemonth are scheduled to proceed for 25 years for a full of $875 million. In addition, the statement volition automatically renew for further 25-year presumption unless either enactment provides announcement astatine slightest a twelvemonth earlier a word ends.

By law, Central Health whitethorn lone usage its resources to supply healthcare services for Travis County residents earning nary much than 200 percent of the Federal Poverty Level. For a azygous idiosyncratic that’s $27,180. For a household of 4 it’s $55,500.

If Dell Medical School is not providing healthcare services for this colonisation and is alternatively utilizing Central Health’s backing for different purposes, past it whitethorn represent an unlawful acquisition of nationalist funds. Which is what The Austin Bulldog’s investigative study documented.

Central Health’s Board of Managers for years has been asking Dell Medical School to papers the services it provides to indigent residents of Travis County, to nary avail.

University documents published online plainly authorities that the Dell Medical School has nary volition of providing healthcare services to low-income patients successful instrumentality for these funds. The Glossary of Terms within the University of Texas astatine Austin’s Operating Budget for the Fiscal Year ending August 31, 2022, classifies the wealth received from Central Health arsenic “nonoperating.” This is defined arsenic “Funding received from authorities oregon section governments for which nary speech of goods oregon services is perceived to person occurred (including) backing for the U.T. Austin Medical School provided by the section healthcare district.” (Emphasis added.)

It’s Robin Hood successful reverse. Money that by instrumentality whitethorn lone beryllium utilized to supply healthcare services for indigent residents of Travis County is being fixed to 1 of the richest universities successful the country. The UT System has a reported endowment of $30.9 billion, 2nd lone to Harvard’s.

Lawsuit could halt payments

A lawsuit filed successful 2017 seeks to halt Central Health from spending wealth connected thing not related to furnishing aesculapian assistance and infirmary attraction to indigent and financially needy persons residing successful Travis County oregon immoderate intent not statutorily authorized successful Chapter 61 of the Texas Health and Safety Code. (Birch et al v. Travis County Healthcare District dba Central Health et al, Cause No. D-1-GN-17-005824.)

Fred Lewis, 1 of the attorneys who represents plaintiffs successful the lawsuit, told the Bulldog that the taking of depositions has been going dilatory but helium anticipates that process should beryllium finished by the extremity of this year. He expects the adjacent measurement to beryllium that some sides volition record dispositive motions. “Instead of going to trial, these motions to extremity the suit volition effect successful a determination for them oregon us,” helium said.

Lewis said, “The Texas Constitution is wide successful stating that a infirmary territory indispensable walk its wealth connected healthcare services for the poor. The statutory effort to let Central Health to money a aesculapian schoolhouse was defeated. No Attorney General’s sentiment was ever asked for to accidental it was legal. And nary different aesculapian schoolhouse receives wealth from a infirmary territory without providing attraction for mediocre people. Then they took this to voters with ambiguous ballot language.

“The bottommost enactment is I see the radical who pushed for Central Health backing for a aesculapian schoolhouse played accelerated and escaped with the instrumentality and the facts.”

Trust indicators: Ken Martin has been doing investigative reporting successful the three-county Austin metro country since 1981. His assertive reporting doubly garnered first-place nationalist awards for investigative reporting. Both of those projects resulted successful palmy transgression prosecutions. His 2011 probe of the Austin City Council’s unfastened meetings violations triggered a 20-month probe by the Travis County attorney. That probe resulted successful the politician and assembly members signing deferred prosecution agreements to debar being charged, tried, and if convicted serving 1 to six months successful jailhouse and forfeiting their elective offices. He’s been investigating and reporting connected Central Health since 2018. See much connected Ken connected the About page.