How the world is remembering Singapore's Lee Kuan Yew

As Singapore's prime minister ordered all flags in the country to be flown at half-mast for the  week, condolences poured in honoring Lee Kuan Yew, the formidable but influential statesman who many considered modern Singapore's founding father.

"To many Singaporeans, and indeed others too, Lee Kuan Yew was Singapore," said Lee Hsien Loong, Singapore's prime minister and Lee's son, addressing the nation in English, Malay and Chinese, and struggling to choke back tears. "He fought for our independence, built a nation where there was none and made us proud to be Singaporeans. We won't see another man like him."

Lee's body will lie in state in Singapore's parliament for five days starting Wednesday and a state funeral service is planned for Sunday afternoon.

Many citizens expressed their sorrow in condolence books provided outside the Istana, Singapore's official presidential residence, and through Facebook messages and an online message board created by the government.

"What words can be used to portray the long and arduous journey that he took to help turn a little red dot into one of the most admired countries in the world," wrote Liew Patrick in one such tribute. "Every breath of fresh air, every drop of water, every morsel of food, every shelter above our heads … carries marks of his effort and contribution."

"A leader with an iron fist, they might say, but if this is what Singapore had to have to become the impeccably clean and efficient city-state it now is, we are more than thankful," wrote Jeremy Teng in a Facebook post. "As you said, you did your best, and indeed so you did to make Singapore the best it could be."

World leaders also expressed their condolences to the leaders and people of Singapore on Monday.

Indian Prime Minister Narendra Modi called Lee a "far-sighted statesman and a lion among leaders," in a message posted on Twitter. "May his soul rest in peace."

In a letter to Lee Hsien Loong, Chinese Premier Li Keqiang credited Lee with "opening the gate for the friendly cooperation" between the two countries, adding that Lee's contributions to "China's reform and opening up will surely be marked by history."

"Mr. Lee Kuan Yew was an old friend of the Chinese people," Chinese President Xi Jinping wrote in a letter to Singapore's president, Tony Tan, the Wall Street Journal reported.

President Obama called Lee a "visionary leader" who was "sometimes uncompromising" but who spearheaded Singapore's incredible economic growth during his tenure.

Expressing his condolences on behalf of "all Malaysians," Prime Minister Najib Razak said that Lee's "achievements were great, and his legacy is assured."

For more breaking news, follow me @cmaiduc

Copyright © 2015, Los Angeles Times

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Robert Durst hearing: Former NY prosecutor ordered from courtroom

A New Orleans judge ordered former New York district attorney Jeanine Pirro to vacate a courtroom Monday during a bond hearing for real estate scion Robert Durst.

Durst's attorney Dick DeGuerin said in court that he plans to call Pirro, who was sitting in the front row, as a potential witness in the case. The judge denied the request and she was allowed to return. In 2000, Pirro, the former Westchester County district attorney, opened an investigation into the disappearance of Durst's first wife, Kathleen.

Christopher Bowman, a spokesman for the Orleans Parish district attorney, interrupted the hearing to say Pirro cannot be called as a witness and was there as a journalist.

"Frankly, I don't buy that, judge," DeGuerin said, "She's here because she's been participating in the dogging of Mr. Durst for years and years."

Pirro walked back into court to talk to her lawyer and was forced to leave by the bailiff.

Bowman argued that during Durst's Texas trial, "they made Pirro into the bogeyman" and he cited "The Jinx" HBO documentary on Durst.

"It's happening again," Bowman said.

Bowman said Pirro cannot be excluded as a former district attorney without a hearing. Her lawyer said it's a free speech issue.

"They can't have it both ways--either she's a lawyer or a journalist," DeGuerin said, adding he was told Pirro is no longer licensed to practice law in New York.

Earlier, DeGuerin said an L.A. detective "interrogated" Durst at Orleans Parish Jail on Sunday morning without him and even after he had contacted his attorneys late Saturday.

Authorities, he argued, knew Durst had contacted his attorneys.

Prosecutor Mark Burton said authorities had probable cause to arrest Durst. Burton questioned James O'Hearne, a district attorney investigator, about how Durst had pleaded guilty to bail jumping and tampering with evidence during his Texas murder case.

At the time, Durst had been caught in Pennsylvania with two .38 handguns and $37,000. His bond was set at $1 billion in the murder case, in which a jury acquitted him.

The investigator said Los Angeles officials requested a warrant to monitor Durst's phone before his arrest in New Orleans and used that to track him.

O'Hearne listed what was found in Durst's hotel room, including "a flesh-tone mask with salt-and-pepper hair," two Florida travel books, a U.S. map, partially smoked cigarettes believed to be marijuana and four bags of what was believed to be marijuana, 446 $100 bills and other cash.

With the warrant, detectives followed Durst, who had five suitcases and had left his car and apartment unlocked and headed east on Interstate 10.

Durst then called his voicemail from his New Orleans hotel room.

Dozens of reporters packed the courtroom as Durst stood in court wearing an orange jail jumpsuit. His head was shaved, revealing a scar stretching down the top of his head.

On Friday, DeGuerin successfully requested a preliminary hearing "to determine whether the state has sufficient evidence to justify further criminal proceedings on these charges" and whether he should be released. A date for the preliminary hearing was to be determined Monday.

Durst was arrested March 14 in New Orleans on a warrant from Los Angeles, where he has been charged with murder in connection with the 2000 shooting of his friend Susan Berman at her Beverly Hills home.

He is being held at a medical facility at a state prison in St. Gabriel, La., about an hour's drive from New Orleans.

DeGuerin, based in Houston, and New Orleans attorney Billy Gibbens argued Friday in a filing that there is no probable cause to hold Durst on the state charges he faces. Those charges were filed after his arrest March 14 at a New Orleans hotel where, according to court records, he was found with a .38 revolver and about five ounces of marijuana.

He was then charged with possession of a firearm by a felon and illegally carrying a weapon with a controlled substance--charges his attorneys argue in the latest filing are unfounded because "none of Mr. Durst's prior convictions qualify as a predicate felony offense" under Louisiana state law, and because the state failed to prove Durst "was in possession or immediate control of a firearm while also in possession of a controlled substance."

Cantrell ordered the hearing, but it wasn't clear from court paperwork how soon it would occur.

On Sunday, DeGuerin said a Los Angeles prosecutor talked with Durst for three hours in Louisiana without his permission before he arrived to represent Durst.

Durst is now awaiting extradition on the California warrant. He is accused of the execution-style killing of Berman, who was shot once in the head.

At the time, New York authorities were planning to interview Berman about what she knew about the 1982 disappearance of Durst's first wife, Kathleen.

Durst is charged with lying in wait and killing Berman because she was a witness to a crime. He could face the death penalty if he is found guilty.

Los Angeles police detectives said two handwriting experts have linked Durst to an anonymous letter alerting authorities to a "cadaver" at Berman's home.

molly.hennessy-fiske@latimes.com

Copyright © 2015, Los Angeles Times

9:17 a.m.: This story has been updated with developments from morning hearing in New Orleans.

This story was first published at 7:03 a.m.

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How the world is remembering Singapore's Lee Kuan Yew

As Singapore's prime minister ordered all flags in the country to be flown at half-mast for the  week, condolences poured in honoring Lee Kuan Yew, the formidable but influential statesman who many considered modern Singapore's founding father.

"To many Singaporeans, and indeed others too, Lee Kuan Yew was Singapore," said Lee Hsien Loong, Singapore's prime minister and Lee's son, addressing the nation in English, Malay and Chinese, and struggling to choke back tears. "He fought for our independence, built a nation where there was none and made us proud to be Singaporeans. We won't see another man like him."

Lee's body will lie in state in Singapore's parliament for five days starting Wednesday and a state funeral service is planned for Sunday afternoon.

Many citizens expressed their sorrow in condolence books provided outside the Istana, Singapore's official presidential residence, and through Facebook messages and an online message board created by the government.

"What words can be used to portray the long and arduous journey that he took to help turn a little red dot into one of the most admired countries in the world," wrote Liew Patrick in one such tribute. "Every breath of fresh air, every drop of water, every morsel of food, every shelter above our heads … carries marks of his effort and contribution."

"A leader with an iron fist, they might say, but if this is what Singapore had to have to become the impeccably clean and efficient city-state it now is, we are more than thankful," wrote Jeremy Teng in a Facebook post. "As you said, you did your best, and indeed so you did to make Singapore the best it could be."

World leaders also expressed their condolences to the leaders and people of Singapore on Monday.

Indian Prime Minister Narendra Modi called Lee a "far-sighted statesman and a lion among leaders," in a message posted on Twitter. "May his soul rest in peace."

In a letter to Lee Hsien Loong, Chinese Premier Li Keqiang credited Lee with "opening the gate for the friendly cooperation" between the two countries, adding that Lee's contributions to "China's reform and opening up will surely be marked by history."

"Mr. Lee Kuan Yew was an old friend of the Chinese people," Chinese President Xi Jinping wrote in a letter to Singapore's president, Tony Tan, the Wall Street Journal reported.

President Obama called Lee a "visionary leader" who was "sometimes uncompromising" but who spearheaded Singapore's incredible economic growth during his tenure.

Expressing his condolences on behalf of "all Malaysians," Prime Minister Najib Razak said that Lee's "achievements were great, and his legacy is assured."

For more breaking news, follow me @cmaiduc

Copyright © 2015, Los Angeles Times

23.50 | 0 komentar | Read More

How the world is remembering Singapore's Lee Kuan Yew

As Singapore's prime minister ordered all flags in the country to be flown at half-mast for the  week, condolences poured in honoring Lee Kuan Yew, the formidable but influential statesman who many considered modern Singapore's founding father.

"To many Singaporeans, and indeed others too, Lee Kuan Yew was Singapore," said Lee Hsien Loong, Singapore's prime minister and Lee's son, addressing the nation in English, Malay and Chinese, and struggling to choke back tears. "He fought for our independence, built a nation where there was none and made us proud to be Singaporeans. We won't see another man like him."

Lee's body will lie in state in Singapore's parliament for five days starting Wednesday and a state funeral service is planned for Sunday afternoon.

Many citizens expressed their sorrow in condolence books provided outside the Istana, Singapore's official presidential residence, and through Facebook messages and an online message board created by the government.

"What words can be used to portray the long and arduous journey that he took to help turn a little red dot into one of the most admired countries in the world," wrote Liew Patrick in one such tribute. "Every breath of fresh air, every drop of water, every morsel of food, every shelter above our heads … carries marks of his effort and contribution."

"A leader with an iron fist, they might say, but if this is what Singapore had to have to become the impeccably clean and efficient city-state it now is, we are more than thankful," wrote Jeremy Teng in a Facebook post. "As you said, you did your best, and indeed so you did to make Singapore the best it could be."

World leaders also expressed their condolences to the leaders and people of Singapore on Monday.

Indian Prime Minister Narendra Modi called Lee a "far-sighted statesman and a lion among leaders," in a message posted on Twitter. "May his soul rest in peace."

In a letter to Lee Hsien Loong, Chinese Premier Li Keqiang credited Lee with "opening the gate for the friendly cooperation" between the two countries, adding that Lee's contributions to "China's reform and opening up will surely be marked by history."

"Mr. Lee Kuan Yew was an old friend of the Chinese people," Chinese President Xi Jinping wrote in a letter to Singapore's president, Tony Tan, the Wall Street Journal reported.

President Obama called Lee a "visionary leader" who was "sometimes uncompromising" but who spearheaded Singapore's incredible economic growth during his tenure.

Expressing his condolences on behalf of "all Malaysians," Prime Minister Najib Razak said that Lee's "achievements were great, and his legacy is assured."

For more breaking news, follow me @cmaiduc

Copyright © 2015, Los Angeles Times

23.50 | 0 komentar | Read More

Robert Durst hearing: Former NY prosecutor ordered from courtroom

A New Orleans judge ordered former New York district attorney Jeanine Pirro to vacate a courtroom Monday during a bond hearing for real estate scion Robert Durst.

Durst's attorney Dick DeGuerin said in court that he plans to call Pirro, who was sitting in the front row, as a potential witness in the case. The judge denied the request and she was allowed to return. In 2000, Pirro, the former Westchester County district attorney, opened an investigation into the disappearance of Durst's first wife, Kathleen.

Christopher Bowman, a spokesman for the Orleans Parish district attorney, interrupted the hearing to say Pirro cannot be called as a witness and was there as a journalist.

"Frankly, I don't buy that, judge," DeGuerin said, "She's here because she's been participating in the dogging of Mr. Durst for years and years."

Pirro walked back into court to talk to her lawyer and was forced to leave by the bailiff.

Bowman argued that during Durst's Texas trial, "they made Pirro into the bogeyman" and he cited "The Jinx" HBO documentary on Durst.

"It's happening again," Bowman said.

Bowman said Pirro cannot be excluded as a former district attorney without a hearing. Her lawyer said it's a free speech issue.

"They can't have it both ways--either she's a lawyer or a journalist," DeGuerin said, adding he was told Pirro is no longer licensed to practice law in New York.

Earlier, DeGuerin said an L.A. detective "interrogated" Durst at Orleans Parish Jail on Sunday morning without him and even after he had contacted his attorneys late Saturday.

Authorities, he argued, knew Durst had contacted his attorneys.

Prosecutor Mark Burton said authorities had probable cause to arrest Durst. Burton questioned James O'Hearne, a district attorney investigator, about how Durst had pleaded guilty to bail jumping and tampering with evidence during his Texas murder case.

At the time, Durst had been caught in Pennsylvania with two .38 handguns and $37,000. His bond was set at $1 billion in the murder case, in which a jury acquitted him.

The investigator said Los Angeles officials requested a warrant to monitor Durst's phone before his arrest in New Orleans and used that to track him.

O'Hearne listed what was found in Durst's hotel room, including "a flesh-tone mask with salt-and-pepper hair," two Florida travel books, a U.S. map, partially smoked cigarettes believed to be marijuana and four bags of what was believed to be marijuana, 446 $100 bills and other cash.

With the warrant, detectives followed Durst, who had five suitcases and had left his car and apartment unlocked and headed east on Interstate 10.

Durst then called his voicemail from his New Orleans hotel room.

Dozens of reporters packed the courtroom as Durst stood in court wearing an orange jail jumpsuit. His head was shaved, revealing a scar stretching down the top of his head.

On Friday, DeGuerin successfully requested a preliminary hearing "to determine whether the state has sufficient evidence to justify further criminal proceedings on these charges" and whether he should be released. A date for the preliminary hearing was to be determined Monday.

Durst was arrested March 14 in New Orleans on a warrant from Los Angeles, where he has been charged with murder in connection with the 2000 shooting of his friend Susan Berman at her Beverly Hills home.

He is being held at a medical facility at a state prison in St. Gabriel, La., about an hour's drive from New Orleans.

DeGuerin, based in Houston, and New Orleans attorney Billy Gibbens argued Friday in a filing that there is no probable cause to hold Durst on the state charges he faces. Those charges were filed after his arrest March 14 at a New Orleans hotel where, according to court records, he was found with a .38 revolver and about five ounces of marijuana.

He was then charged with possession of a firearm by a felon and illegally carrying a weapon with a controlled substance--charges his attorneys argue in the latest filing are unfounded because "none of Mr. Durst's prior convictions qualify as a predicate felony offense" under Louisiana state law, and because the state failed to prove Durst "was in possession or immediate control of a firearm while also in possession of a controlled substance."

Cantrell ordered the hearing, but it wasn't clear from court paperwork how soon it would occur.

On Sunday, DeGuerin said a Los Angeles prosecutor talked with Durst for three hours in Louisiana without his permission before he arrived to represent Durst.

Durst is now awaiting extradition on the California warrant. He is accused of the execution-style killing of Berman, who was shot once in the head.

At the time, New York authorities were planning to interview Berman about what she knew about the 1982 disappearance of Durst's first wife, Kathleen.

Durst is charged with lying in wait and killing Berman because she was a witness to a crime. He could face the death penalty if he is found guilty.

Los Angeles police detectives said two handwriting experts have linked Durst to an anonymous letter alerting authorities to a "cadaver" at Berman's home.

molly.hennessy-fiske@latimes.com

Copyright © 2015, Los Angeles Times

9:17 a.m.: This story has been updated with developments from morning hearing in New Orleans.

This story was first published at 7:03 a.m.

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LeSean McCoy says Eagles made 'a panic move' by signing running backs

LeSean McCoy reportedly was upset with the Philadelphia Eagles when they traded him to the Buffalo Bills, so it makes sense that he would criticize the reasoning behind the team's recent running back moves.

Speaking on the Rich Eisen Show on Friday, McCoy argued that the Eagles were more or less forced to sign DeMarco Murray and Ryan Mathews once Frank Gore joined the Indianapolis Colts on March 10.

"I saw that they originally were trying to get Frank Gore, and he backed out," McCoy said. "So then when they got DeMarco and they got Ryan Mathews, I thought it was like a panic move. With that media in Philadelphia, they can get tough on you."

Gore told ESPN he was on the verge of signing with the Eagles before the Colts made him a better offer. Gore also said he wanted to play with a standout quarterback -- Colts play-caller Andrew Luck fits that description; new Eagles quarterback Sam Bradford does not.

With Gore out of the picture for the Eagles, McCoy said the team was forced to pursue Murray. McCoy praised Murray, but questioned the need for two running backs.

"I can't really answer it," McCoy said. "They took two backs to replace one. I think DeMarco's a hell of a back. I think he'll do a good job there.

"Chip [Kelly], I think, is a really good coach. I think this is something different for him kind of managing both, from being a coach to now kind of managing the team as far as the players that they get and they pay."

The Eagles signed Murray to a five-year, $42-million deal and gave Mathews a three-year, $11.5-million contract last week.

Copyright © 2015, Los Angeles Times

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LeSean McCoy says Eagles made 'a panic move' by signing running backs

LeSean McCoy reportedly was upset with the Philadelphia Eagles when they traded him to the Buffalo Bills, so it makes sense that he would criticize the reasoning behind the team's recent running back moves.

Speaking on the Rich Eisen Show on Friday, McCoy argued that the Eagles were more or less forced to sign DeMarco Murray and Ryan Mathews once Frank Gore joined the Indianapolis Colts on March 10.

"I saw that they originally were trying to get Frank Gore, and he backed out," McCoy said. "So then when they got DeMarco and they got Ryan Mathews, I thought it was like a panic move. With that media in Philadelphia, they can get tough on you."

Gore told ESPN he was on the verge of signing with the Eagles before the Colts made him a better offer. Gore also said he wanted to play with a standout quarterback -- Colts play-caller Andrew Luck fits that description; new Eagles quarterback Sam Bradford does not.

With Gore out of the picture for the Eagles, McCoy said the team was forced to pursue Murray. McCoy praised Murray, but questioned the need for two running backs.

"I can't really answer it," McCoy said. "They took two backs to replace one. I think DeMarco's a hell of a back. I think he'll do a good job there.

"Chip [Kelly], I think, is a really good coach. I think this is something different for him kind of managing both, from being a coach to now kind of managing the team as far as the players that they get and they pay."

The Eagles signed Murray to a five-year, $42-million deal and gave Mathews a three-year, $11.5-million contract last week.

Copyright © 2015, Los Angeles Times

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Prime issues a misleading defense of its actions in a hospital merger deal

Prime Healthcare, the exceptionally aggressive hospital chain that recently backed out of a deal to buy six California medical facilities, is unhappy with my coverage of the affair.

In a letter published Sunday by The Times, the Ontario, Ca.-based chain says my recent column about the deal "misrepresents Prime Healthcare's intentions in the failed Daughters of Charity deal, painting a misleading portrait of the company's history."

Much of what Prime says here is misleading--and the real story may be in what it doesn't say.

Some background: On March 10, Prime withdrew from the $843-million deal to buy the six struggling institutions owned by the Catholic Daughters of Charity, complaining that conditions imposed by state Atty. Gen. Kamala D. Harris "forced" it to rescind its offer. Harris had mandated that Prime continue services provided by the institutions, which include St. Francis and St. Vincent medical centers in Southern California, for up to 10 years.

My column suggested that Prime's actions showed it may never have intended to live up to its promises on maintaining hospital services. I quoted directly from its merger agreement to show that some of its promises were shot through with loopholes. 

What does Prime say to that? In his letter to The Times, Prime President Mike Sarian tries to contradict my column by asserting that "Prime Healthcare has never closed a hospital, nor has it ever shut down clinical operations at any of its 34 facilities nationwide." This is a classic bit of straw-man misdirection, since nowhere does the column say that Prime has ever closed a hospital or "shut down clinical operations."  

Sarian's claim about clinical operations, however, deserves a closer look. It's carefully worded, as we can tell by revisiting the saga of the Grossman Burn Center, which had been a glittering jewel of Sherman Oaks Hospital for nearly four decades when Prime took over that hospital in 2006. Less than four years later, the burn center was on its way out, despite Prime's commitment to keep it open for at least five years. 

In a 2009 letter to state officials, Prime portrayed this development as a voluntary decision by the center's co-directors, Drs. Richard and Peter Grossman, to move the clinic to West Hills Hospital and Medical Center. Prime said it had had "every intention" of fulfilling its pledge to keep the center in operations, citing its "commitment of financial resources to the Burn Center including monies spent to remodel the Burn Center in the past two (2) years."

Here's what Prime didn't say. As my colleague Tiffany Hsu reported at the time, the center's move was prompted by the Grossmans' "frustration" with the new management at Sherman Oaks. When it took over, Prime canceled insurance contracts held by the hospital; this was its business model, and allowed it to collect higher reimbursements from companies covering its patients.

In the words of Hsu's article: Burn Center founder A. Richard Grossman "said that staffing at the burn center dwindled down to a skeleton crew after the acquisition. Without insurance, many burn patients couldn't afford treatment, he said."

What about Prime's assertion about the financial resources it provided to the burn center, including a remodeling? Here's Grossman: "We got some paint jobs, and that's about it."

If you read between the lines, you just might conclude that Prime didn't order the Grossman Burn Center shut, but rather starved the center until it had no choice but to leave if it was to operate adequately. So Prime can still claim it "never shut down" a clinical operation.

What lends this saga a touch of cynicism is that right up until the point the Grossmans decamped, Prime cited the burn center as an example of its proud commitment to delivering top-flight healthcare. In an interview with a local newspaper soon after acquiring Shasta Regional Medical Center in Redding, Prime founder Prem Reddy said:

"We own and operate Sherman Oaks Hospital, which is the home of Grossman Burn Center, which treats patients from all across the world. We treated patients from Iraq and Afghanistan. There were these young kids (who) were burned because of war-related injuries....You might have heard the stories on 60 Minutes and CNN."

Atty. Gen. Harris chose to look beneath Prime's boasts about the quality of its services and examined the reality of canceled insurance contracts and fewer services. She removed the loopholes from the merger agreement and demanded that Prime live up to its commitments in deed as well as word. And Prime bailed. What's "misleading" about that? 

Keep up to date with the Economy Hub. Follow @hiltzikm on Twitter, see our Facebook page, or email mhiltzik@latimes.com.

Copyright © 2015, Los Angeles Times

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LeSean McCoy says Eagles made 'a panic move' by signing running backs

LeSean McCoy reportedly was upset with the Philadelphia Eagles when they traded him to the Buffalo Bills, so it makes sense that he would criticize the reasoning behind the team's recent running back moves.

Speaking on the Rich Eisen Show on Friday, McCoy argued that the Eagles were more or less forced to sign DeMarco Murray and Ryan Mathews once Frank Gore joined the Indianapolis Colts on March 10.

"I saw that they originally were trying to get Frank Gore, and he backed out," McCoy said. "So then when they got DeMarco and they got Ryan Mathews, I thought it was like a panic move. With that media in Philadelphia, they can get tough on you."

Gore told ESPN he was on the verge of signing with the Eagles before the Colts made him a better offer. Gore also said he wanted to play with a standout quarterback -- Colts play-caller Andrew Luck fits that description; new Eagles quarterback Sam Bradford does not.

With Gore out of the picture for the Eagles, McCoy said the team was forced to pursue Murray. McCoy praised Murray, but questioned the need for two running backs.

"I can't really answer it," McCoy said. "They took two backs to replace one. I think DeMarco's a hell of a back. I think he'll do a good job there.

"Chip [Kelly], I think, is a really good coach. I think this is something different for him kind of managing both, from being a coach to now kind of managing the team as far as the players that they get and they pay."

The Eagles signed Murray to a five-year, $42-million deal and gave Mathews a three-year, $11.5-million contract last week.

Copyright © 2015, Los Angeles Times

23.50 | 0 komentar | Read More

Prime issues a misleading defense of its actions in a hospital merger deal

Prime Healthcare, the exceptionally aggressive hospital chain that recently backed out of a deal to buy six California medical facilities, is unhappy with my coverage of the affair.

In a letter published Sunday by The Times, the Ontario, Ca.-based chain says my recent column about the deal "misrepresents Prime Healthcare's intentions in the failed Daughters of Charity deal, painting a misleading portrait of the company's history."

Much of what Prime says here is misleading--and the real story may be in what it doesn't say.

Some background: On March 10, Prime withdrew from the $843-million deal to buy the six struggling institutions owned by the Catholic Daughters of Charity, complaining that conditions imposed by state Atty. Gen. Kamala D. Harris "forced" it to rescind its offer. Harris had mandated that Prime continue services provided by the institutions, which include St. Francis and St. Vincent medical centers in Southern California, for up to 10 years.

My column suggested that Prime's actions showed it may never have intended to live up to its promises on maintaining hospital services. I quoted directly from its merger agreement to show that some of its promises were shot through with loopholes. 

What does Prime say to that? In his letter to The Times, Prime President Mike Sarian tries to contradict my column by asserting that "Prime Healthcare has never closed a hospital, nor has it ever shut down clinical operations at any of its 34 facilities nationwide." This is a classic bit of straw-man misdirection, since nowhere does the column say that Prime has ever closed a hospital or "shut down clinical operations."  

Sarian's claim about clinical operations, however, deserves a closer look. It's carefully worded, as we can tell by revisiting the saga of the Grossman Burn Center, which had been a glittering jewel of Sherman Oaks Hospital for nearly four decades when Prime took over that hospital in 2006. Less than four years later, the burn center was on its way out, despite Prime's commitment to keep it open for at least five years. 

In a 2009 letter to state officials, Prime portrayed this development as a voluntary decision by the center's co-directors, Drs. Richard and Peter Grossman, to move the clinic to West Hills Hospital and Medical Center. Prime said it had had "every intention" of fulfilling its pledge to keep the center in operations, citing its "commitment of financial resources to the Burn Center including monies spent to remodel the Burn Center in the past two (2) years."

Here's what Prime didn't say. As my colleague Tiffany Hsu reported at the time, the center's move was prompted by the Grossmans' "frustration" with the new management at Sherman Oaks. When it took over, Prime canceled insurance contracts held by the hospital; this was its business model, and allowed it to collect higher reimbursements from companies covering its patients.

In the words of Hsu's article: Burn Center founder A. Richard Grossman "said that staffing at the burn center dwindled down to a skeleton crew after the acquisition. Without insurance, many burn patients couldn't afford treatment, he said."

What about Prime's assertion about the financial resources it provided to the burn center, including a remodeling? Here's Grossman: "We got some paint jobs, and that's about it."

If you read between the lines, you just might conclude that Prime didn't order the Grossman Burn Center shut, but rather starved the center until it had no choice but to leave if it was to operate adequately. So Prime can still claim it "never shut down" a clinical operation.

What lends this saga a touch of cynicism is that right up until the point the Grossmans decamped, Prime cited the burn center as an example of its proud commitment to delivering top-flight healthcare. In an interview with a local newspaper soon after acquiring Shasta Regional Medical Center in Redding, Prime founder Prem Reddy said:

"We own and operate Sherman Oaks Hospital, which is the home of Grossman Burn Center, which treats patients from all across the world. We treated patients from Iraq and Afghanistan. There were these young kids (who) were burned because of war-related injuries....You might have heard the stories on 60 Minutes and CNN."

Atty. Gen. Harris chose to look beneath Prime's boasts about the quality of its services and examined the reality of canceled insurance contracts and fewer services. She removed the loopholes from the merger agreement and demanded that Prime live up to its commitments in deed as well as word. And Prime bailed. What's "misleading" about that? 

Keep up to date with the Economy Hub. Follow @hiltzikm on Twitter, see our Facebook page, or email mhiltzik@latimes.com.

Copyright © 2015, Los Angeles Times

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