Greater Southeast Could Get Receiver
D.C. Committee Can Subpoena Finance Records

By Susan Levine
Washington Post Staff Writer
Wednesday, July 11, 2007

The D.C. Council put its frustration and concern over Greater Southeast Community Hospital to a vote yesterday and authorized legislation allowing the city to seek a court-appointed receiver for the troubled facility.

Although intervention is not imminent -- despite repeated reports about the distressing conditions there -- the council's unanimous decision is intended to increase pressure on the hospital's corporate parent to sell Greater Southeast and leave town.

A second measure could be as persuasive to Envision Hospital Corp.'s continued ownership. In the same 13 to 0 vote, the council approved giving its health committee power to subpoena company financial records and compel testimony. Committee Chairman David A. Catania (I-At Large), who has alleged that the Arizona-based Envision might have committed Medicaid fraud, wants to move quickly to obtain information that it has declined to provide.

"Within weeks," said Catania, who this morning will hold another hearing on the hospital. He noted that the health committee will pursue its work despite the council's summer recess. "I intend to use the authority granted by the council to finish this assignment, and the assignment is restoration of quality health care at that hospital."

The two pieces of emergency legislation, which will be in effect for 180 days, are the council's most forceful action on Greater Southeast. The facility, the city's only hospital east of the Anacostia River, has been beset in recent months by staffing, supply and equipment shortages so severe that District health regulators concluded that patient care and safety had been endangered.

For part of last summer and fall, Catania, council member Marion Barry (D-Ward 8) and then-Mayor Anthony A. Williams (D) threatened to use eminent domain to secure the hospital if Envision did not remedy problems and move toward a sale. They dropped that tactic when the company began working on a deal with a Prince George's County businessman, Carl D. Jones.

But the seeming lack of progress toward a purchase, on top of Greater Southeast's continued decline, brought issues to a head yesterday. Catania described his "enormous frustration" over the pace of negotiations and questioned whether Jones and Envision Chairman Paul Tuft were "playing gamesmanship" over the hospital.

"There is no question there has been sufficient time to consummate an agreement," said Vincent C. Gray (D), the council chairman.

Neither Jones nor Tuft returned calls for response.

The hospital's public image took yet more hits during the discussion, with council member Mary M. Cheh (D-Ward 3) declaring that she was "really appalled by what's going on over there." And Yvette Alexander (D-Ward 7) said, "Personally, I wouldn't want to go to Greater Southeast to obtain services."

Because of the intense scrutiny from the health committee and city regulators, Envision has provided more than $2 million for improvements at Greater Southeast in the past six weeks.

"I'm cautiously optimistic that these additional resources that have been made available are making a difference," Catania said after the vote. "I'm hopeful that Greater Southeast has a new sense of cooperation."

The receivership legislation, similar to laws in more than a dozen states, will enable Mayor Adrian M. Fenty (D) to ask for an independent authority in circumstances stemming from egregious health violations. The individual would manage the hospital's operations and finances, borrowing against its assets if necessary.

A spokeswoman said Fenty supports the receivership bill and the subpoena measure. They will take effect upon his signature.