Measure G Hospital Myths Debunked

There's some myths being spread around by Measure G opponents, which are higly deceving, and compelling. I wanted to debunk those myths...

There's some myths being spread around by Measure G opponents, which are higly deceving, and compelling. I wanted to debunk those myths...

Myth #1 - If Measure G passes, the hospitals will become for-profit.

The truth is that the hospitals are already for-profit. Valley Health System is NOT a non-profit group. Rather, it's a government agency. It's supposed to earn profits to pay for its improvements. Problems arose because poor management caused it to lose money, and resorted to taxing its residents to pay for interest on bonds.

Myth #2 - Stop privatization

The facts are that privatization is what creates quality. When investors have earnings at stake, they compete against other hospitals for more business. That competition is what ushers in quality service and state of the art amenities.

The reason why VHS hospitals are so antiquated with its facilities, is because it's a governement agency, with no incentive for improvement. Publicly-owned institutions have no investors, and therefore, no incentive to provide quality.

If you believe that publicly owned institutions can provide quality service, go stand in line at the DMV.

Myth #3 - If Measure G passes, no other hospitals can be built for 20 years.

False. If Measure G passes, any other health care company, or physicians group, or individual is free to build new hospitals in Menifee, Hemet, Moreno Valley, or anywhere in between.

What opponents are referring to is a agreement by VHS not to build any new hospitals. But so what! Why would we want VHS to another hospital?

Myth #4 - If Measure G passes, it will create a monopoly.

Valley Health System effectively has a monopoly right now! Why aren't Measure G opponents saying something about that?

There are still plenty of hospitals throughout south west Riverside county to go to. In fact, many people prefer to go to Inland Valley instead of Menifee Valley. People in Hemet and San Jacinto often go to Beaumont. People in Moreno Valley frequently go to Loma Linda.

Myth #5 - If Measure G passes, people will be denied healthcare.

False. This is the biggest lie of them all.

Hospitals are prohibited from turning away emergency patients just because they don't have money or insurance. In fact, all physicians swear to an oath to treat anyone who needs medical attention.

As it stands now, people are already being denied healthcare because the three VHS hospitals are understaffed and poorly equipped. Anyone who has been to Menifee Valley Medical Center, and had to wait 8 hours to be attended to, knows what I'm talking about.

Myth #6 - We need to keep our hospitals publicly owned.

This is a big deception.

Under the terms of the agreement, if Measure G fails to pass, Select Healthcare is OBLIGATED to purchase Moreno Valley Medical Center. It has already paid $14 million to VHS as a deposit for Moreno Valley. No matter what happens, Moreno Valley will belong to Select Healthcare.

There are still other candidates that want to purchase Hemet Valley and Menifee Valley. Do the Measure G opponents think these buyers are going to go away?

Myth #7 - Bankruptcy protection can bring VHS back to solvency.

False. Bankruptcy will only waive VHS' debts, which are the same debts that VHS hasn't been paying anyways!

Bankruptcy won't bring in new money. Without new money, it's going to have to shut down services, and layoff workers.


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  1. I am so glad that you placed the facts on the table. I was already voting yes on the measure, I truly hope your message makes people realize that this would be good for the community. Thank you for the facts and your opinion... please vote yes for this measure.

  2. I saw Myth #8 in a "Vote No" flyer:

    (Paraphrase) "If you vote Yes then Chaudhuri can manage the hospitals again in 5 years."

    My take: So what? This is nothing more than a standard contract clause that prevents competition for a set period of time. If you own a business and sell it I bet the buyer will want you to not compete for a period of time, such as 5 years. If Select does a good job with the VHS hospitals over the next 5 years then they won't need Chaudhuri. The only reason he was there was because the VHS board couldn't run the hospitals. If you do vote no there's nothing preventing him from coming back to run the hospitals.

    I'm voting "Yes" on Measure G.

  3. Chaudhuri's management company has an equal chance of managing the hospitals again, as does any other management company.

    But should Chaudhuri's management company come back to manage these hospitals, he'll be judged by his ability to run these hospitals profitably. The investors of Select Healthcare will fire his butt if he continues the same poor service.

  4. Dr Chaudhuri is Select. He managed this hospital district to this point & now he's going to buy it. In 5 years he will own & manage, that was put in so some thougt he was out of the picture right away. As a community hopital dstrict we have a voice in its decisions, private we dont. If Select buys them they have the option of closing the emergency rooms and any department that is not profitable. Please read the contract, its on the hospitals website. dont just listen to what either side states, investigate for yourself.

  5. Anonymous:

    I don't know how this is possible given the terms of the sale agreement between VHS and Select. I read it on VHS's web site at and according to items 6, 7, and 8 of the sale agreement that the new management can not be affiliated with prior management for 5 years. Unless someone is willing to perjure themselves I would say it's a safe bet Chaudhuri is not involved in this sale.

    A private hospital is managed in a way that makes sense to the equity holders (stockholders, owners, investors, etc.); a government run hospital is not managed in that way. Why do so many people go to Inland Valley, Rancho Springs, or Beaumont rather than going to a VHS hospital? Because those other hospitals are all private and managed well; the VHS hospitals are government and mis-managed, just like the DMV. There is already talk of a new specialty unit being opened at one or more of the hospitals if Select buys it; that's a very good thing and something that will never happen under VHS.

    Please stop trying to scare people with your misinformation.

  6. Dave,
    In no way is my intention to scare anyone. My family has used & needed the hospital several time over the last 18 years and at times in the middle of the night with my asmatic son. I hate to think of having to drive 40 min. instead of 5. Although some may complain about equipment, the service of the staff has always been good and appreciated. I didn't want to rely on message boards to base my decision on. I attended two of the information meetings that had members from both sides. I went on the internet & searched for information on Dr. Chaudhuri & Select Healthcare. I went to VHS website and read not only their Summary of the contract but also the Contract and the Disclosure Schedules. Now, maybe I was wrong stating my oppinion that Dr. C is Select but Mr. Cutler has not disclosed is fianancial backers and will not exclude Dr.C. The contract excludes Dr. C from managing for 5 years not owning it.Infact when its mentioned about ownership, it states that a individual Dr. and a Medical Group shall be concidered seperate entitys. That would mean Dr. C could purchase a % on his own and a % through H.C.M.G. which he is the majority owner in,& he could (or any one person) have control of the hospital. Why was $3.6 million of the down payment sent directly to H.C.M.G. and why would that have to be a part of the contract? I dont know, I can go on & on. I don't beleive I stated any misinformation. It was in in the Contract & the Schedules. The Emergency Rooms, the speciality units, the retrofitting is all based upon...... "that it is commercially reasonable and viable to do so" I dont know if there is an emergency room that would follow under that. I don't know the right answer, only time will tell. Im just trying to get as much information as I can to make an informed decision. Not one based upon signs along a street. Please Take the time to read the Contract & the Disclosure Schedule thats where the truth might be for us. I hope we all make the right decision. I'm glad we have this opportunity to voice our opinions. Thanks


  7. Jerry, I won't argue with you that Select Healthcare seems to have some veil of secrecy. But I won't go so far as to say that Chaudhuri is involved with Select.

    However, the focus is the state of the hospitals RIGHT NOW. Right now, the service is terrible, and the facilities are out of date.

    The Hemet hospital is going to close anyways because it doesn't meet earthquake standards.

    Moreno Valley is going to be sold to Select Healthcare, no matter the outcome of the vote.

    Why are we talking about Chaudhuri when these hospitals are already as bad as they can be?

    Opponents of Measure G haven't put forth any plans on how to bring in new money. Their whole basis of argument is "Chaudhuri this... Chaudhuri that...", and no talk of moving forward.

    What are we doing to do right now to move forward?

  8. Steve great piece. If more people had your logic "Yes on Measure G" would be a slam dunk. As for the No on G crowd how many more Dr. Chaudhuri comments, mail pieces and newspapers do I have see. If I didn't know better I bet the NO crowd will even blame all the fires going on in this great state on Dr. Chaudhuri. World hunger, the war in Iraq, and illegal emigration might as well be blamed on him too.
    -Jerry here are the facts-
    1. The Financial Backers are big Multibillion dollar companies who have plenty of capital and are traded on the stock exchange everyday. Thats all I can say right now.( Dr. C only wished he had this kind of money)
    2. HCMG is owned by the PHYSICIANS not just Dr. C. Each Physician that has ownership only has 2 shares of HCMG, even Dr. Chaudhuri only has 2 shares so no, he doesn't own a majority share in HCMG.
    3. As for the $3.6 Million down payment, Hemet Hospital owed HCMG for services that the Hopital never payed back. They owe HCMG even more.

    I can't stand Dr. Chaudhuri as much as the rest of you but we need to move on and stop pointing fingers. "Yes on G" is at least a solution. The "No" guys don't even have one.

  9. Don't be fooled by the lies. Read the truth at:

  10. I have a belief that people get what they deserve. SELECT SOLUTIONS ala Matthew Cutler, IS Kali P. Chaudhuri. It couldn't be more clear. Chaudhuri has used other people's money, and made the down payment...which down payment has more fish hooks than a bass boat. How long will people believe in the fantasy ? Chaudhuri has said in public that "Americans are stupid, and I am willing to take advantage of their stupidity." So, vote "YES" and see things go to his EMPIRE, or look at the facts and save your medical community. Don't let CHAUDHURI prove what he believes about Americans.

  11. Wow, as a Valley Health Systems Employee for the last 5 years and a local resident since 1998, I am voting NO on G. This is a poorly written contract with multiple loopholes. In section 5.9.2 Maintenance of Emergency Department, for a period of 5 yrs following the closing date, will maintain a basic 24 hr emergency room, "to the extent that it is commercially reasonable and viable to do so", this gives them the option of closing down the emergency room. There is no Emergency Room in America which makes a profit. I worked back east at a Trauma Center and also in Palm Springs at a Trauma Center, we have never made a profit in an ER, they are a money pit. This gives them a way to Close the ER. "Select" may also bring in KM Strategic Management for case management, who are they, they are Kali Chaudhura and Mike Foutz. This is in section 3.11 As a hospital employee who is also responsible for billing for my services to the patients accounts i can tell you we undercharge for our services. I can also tell you that having my daughter be a patient in our ER last 12-06 I just now received a bill for service. Almost a year later. What a better way of making us look so broke than bill a year later. If "Select" becomes our owner there is no guarantee that as an employee we will be guaranteed our jobs. We have been told that. We were told that if we discuss "NO" we could be fired, however if we discuss "YES" that is allowed. Why is that? That goes against our free speech. The "YES" signholders are being paid by Hemet Community Medical Group to hold them we the employees hold them at lunch, with some repurcussions from our bosses. Our SEIU Union, is obviously concerned as they will loose their contract, and hence their money. Where are all the YES ad's coming from? They come from Hemet Community Medical Group, who owns that, Dr Chaudhuri. They also come from "Select" under VHS Acquisition Group, DEl MAR. This is Mr Cutler. Todays Press Enterprise states they have paid $902,000 for advertising and HCMG has paid $210,000. They are paying people to tear down the Vote NO signs. As a private and for profit hospital they do not have to serve our Community. Our VHS hospital system was built to serve our community, how is it serving the community if it is private? I as a mother, say Vote NO. The Mismanagement is what has diven our system down. Quorum, the management company they have chosen has just recently settled a lawsuit for Medicare fraud. You can Google them and see what you come up with. I worked as a Case Manager in Orange County when KPC bought MEDPARTNERS and then bankrupted them. We had no doctors with contracts to see their patients, we had paitents without medical insurance that we had to find other doctors to care for and alternative treatments for them. Some of these patients died. You can read the book "Critical Conditions", as it had a large chapter (3) all on KPC and also a section on Valley Health Systems. I love my hospital, I love the people I work with, and I do not want to see this change. Selling to "Select" to get better management is not the answer. WE do not need to sell to get better management. Dr Dreier has fought for years against Dr Chaudhuri, now he just spent time in India with him. We need to take back our hospitals, keep them run by the Community for which they were founded on and get new management . WE had made money in the past, and we can again!!We paid Dr Chaudhuri over $700,000 a month for mis-management, now that we are not paying for him we can get back to what we do....Care for our Community!!! AS an Employee and A MOM, Please read the contract and VOTE NO!!

  12. The reason our hospitals are so bad at this point is because of the private management hired and sustained by a board with serious conflicts of interest. With new management, a new board (we need this, too), and the strategies recommended by the, our hospitals can emerge operationally and financially strong. Selling the hospital now is only a short-term solution. In the long-term, for-profit hospitals have a poor track record including a high failure rate. We need to loo