The affluent and the influential

July 3rd, 2009 11:33 am · 30 comments

From the be-careful-what-you-wish-for department, the folks over at NewsLanc weigh in on the proposed high-priced condos by the bus station:

But even more importantly, bringing the affluent to downtown adds a influential voice and powerful constituency for intelligent downtown improvements.

Not to put too fine a point on it, but - isn’t the “influential voice” of this “powerful constituency,” the wealthy, exactly what has angered so many people? Don’t they say this “powerful constituency” already has too influential a voice?

Beyond that, do we really suppose that people living in high-end condos would have opposed, say, the convention center? Or would they be more likely to support it, on the theory that it might help boost their own property values?

I agree it would be nice to see an influx of wealth into the city, though as I’ve said many times - depending on how successful it is, that could trigger gentrification. And that may be the biggest fight of all.

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  30 comments  Tags: Lancaster

There are currently 30 comments on this blog post
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Artie See
7/3/09
4:51 PM
Gil, you REALLY know how to open up a can of worms.

Affluent and influential are not necessarily the same. My observation has been that only a small number of affluent people are actually seriously influential, primarily because of their political, business, and/or social connections. Just because someone is financially well off does not mean they have the political influence of someone with the last name of High.

And, let's get real. The hotel and convention center are here. We're stuck with it, for better or for worse. The fact that Lancaster City will receive no real estate taxes whatsoever from the site for at least 20 years (and none ever again for the convention center), on top of a significant increase in demand for services caused by the facility, MUST BE DEALT WITH.

The biggest single factor in ANY hotel or convention center is the lack of consistency in the traffic they create. Even if the hotel were to have consistently high occupancy rates, the best possible outcome would be a few dozen people who choose to dine outside of the hotel restaurant on a daily basis; helpful of course, but not enough to open more than perhaps another restaurant or two downtown. (Since most small meetings in either the hotel or convention center will include their own food service, these will not be a significant factor.) And the convention center will only be occupied a few days a month; whatever business it may create will never be consistent enough to keep new businesses open.

What downtown Lancaster needs is a consistent source of new revenue.

Had the Watt & Shand building been used as the core for high-end condominiums, downtown's revitalization would have been well under way by now, as residents would have looked for local places to shop and dine. This project has the potential to make up for a small portion of that loss.

Certainly people who can afford to spend hundreds of thousands of dollars to purchase a condo can afford to eat out several times a week. I agree with NewsLanc.com that this project has the potential to create more consistent and stable long-term economic development than the hotel and convention center combined.

And this project will be significant in several other ways. If it is successful, it will motivate other investors to create comparable projects. There are plenty of vacant sites in downtown Lancaster that could be converted into condos (like the Excelsior building), or are available for new construction (like the vacant lot at Prince and Chestnut).

It all comes down to consistency. Downtown Lancaster will never experience a significant economic revival unless it has a consistent source of new revenue. Condominiums and/or high-end apartments are one of the better ways to achieve that goal.
reese
7/3/09
8:30 PM
People complain about hospitals not paying real estate taxes, but a convention center, which is all about profit, gets a free pass? Artie, can you explain this to me? I don't get it.
Artie See
7/3/09
9:39 PM
QUOTE (reese @ Jul 3 2009, 08:30 PM) <{POST_SNAPBACK}>
People complain about hospitals not paying real estate taxes, but a convention center, which is all about profit, gets a free pass? Artie, can you explain this to me? I don't get it.

Well, the convention center is owned by a government agency; built completely with taxpayer dollars; and its operation is subsidized with taxpayer dollars. So I can understand why the convention center does not pay taxes.

But the hotel is another story. Why should a private hotel, which is all about profit, get a free pass? I don't understand why, either. This is the specific issue which turned me into an outspoken opponent to the project.
Artie See
7/4/09
10:20 AM
Gil, I was hoping that you would have replied to my post; I put a lot of thought into it.

I've been thinking about it ever since. I feel it is necessary to add the following:

QUOTE (Lancaster Online @ Jul 3 2009, 11:35 AM) <{POST_SNAPBACK}>
I agree it would be nice to see an influx of wealth into the city, though as I’ve said many times - depending on how successful it is, that could trigger gentrification. And that may be the biggest fight of all.

Merriam-Webster defines "gentrification" as:

QUOTE (Merriam-Webster)
: the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents

http://www.merriam-webster.com/dictionary/gentrification

Gentrification may be the only practical way to salvage the economic vitality and remaining tax base of downtown Lancaster.

Historically, downtown has provided a disparate proportion of real estate tax revenue in Lancaster City, effectively subsidizing homeowners. But over the last half-century, much of that tax base has been lost. Collectively, projects like "Urban Renewal" (which led to the destruction of so much taxable property), expansion of government services (like the new police station and 150 N. Queen St.), parking garages, schools (like the Pennsylvania Academy of Music and the Pennsylvania School of Art and Design), the baseball stadium, the bus depot, the art museum, plus the hotel and convention center, have resulted in a shift to where homeowners like me are now effectively subsidizing the commercial and social hub of Lancaster County. This is not sustainable; it only serves to drive businesses and homeowners out of the city limits, which makes it even more expensive for the rest of us to support City services.

Projects like the hotel and convention center are intended to encourage economic development. But what kind of economic development can we expect? People who can afford to attend conventions, and stay in relatively expensive hotels, will consistently be interested in eating at nicer restaurants, and shopping at nicer stores; consequently, this is the kind of economic development that we can expect to see in downtown Lancaster, and indeed these are exactly what promoters of the project have promised to us. But the very nature of the hospitality industry means that whatever economic activity is generated will be inconsistent, with peaks of activity followed by long valleys which are quite similar to before the facility opened for business. Yes, a certain amount of local residents will be attracted to these new restaurants and shops, but not nearly enough to sustain their profitability in the long run - especially considering the cost and inconvenience of parking.

What businesses in downtown Lancaster need to succeed is a consistent source of revenue.

"Gentrification", with its influx of individuals with a disposable amount of income, would provide sustainability for the kinds of businesses which would be generated by the hospitality industry. People who live downtown would be attracted to the restaurants and shops which they can walk to, and can bring a level of consistent profitability to these businesses which no hospitality venue could ever possibly provide.

This helps restore the tax base of downtown Lancaster in several ways: it creates sustainable profitability for new and expanded businesses in downtown Lancaster, encouraging more to locate here; and it encourages investment in new and rehab residential construction.

The harsh reality is, the path which downtown Lancaster has followed over the last several decades has slammed the door on many possibilities. Now that the heart of our city has been reinvented and redesigned for upscale individuals, the only way to sustain that path is to generate a consistent source of revenue to keep it alive. Yes, lower income individuals will find themselves squeezed into other parts of the city; but our path into the future has already been decided for us.
reese
7/4/09
4:15 PM
OK. I understand about the CC, but the hotel?

Artie, I really think you need to rethink your position on not running for mayor. I think you have a much better grasp on issues than you think you do.

Wow. A hotel sitting smack downtown that gets a free ride on taxes. Stunning.
gsmart
7/4/09
5:50 PM
QUOTE (Artie See @ Jul 3 2009, 04:51 PM) <{POST_SNAPBACK}>
Affluent and influential are not necessarily the same. My observation has been that only a small number of affluent people are actually seriously influential, primarily because of their political, business, and/or social connections. Just because someone is financially well off does not mean they have the political influence of someone with the last name of High.


Sure. But what this misses is this:

Suppose - as Field/NewsLanc hopes - Lancaster would see an influx of wealth, or relative wealth. People who might once have lived in a School Lane Hills - or a suburb further out in Manheim Township - instead opt for the city.

In addition to being a new, needed source of revenue, this is also a constituency - a political constituency. And it's a constituency, I believe, that would wholesale support the type of things that have been going on here, not just the convention center, but the overall aesthetic that public dollars are better spent where they can be leveraged by private dollars (however "unfair" we may think the balance between the two). The ballpark. F&M. LGH. Institutions that have made an investment in the city and in so doing have tried to create a safer, nicer city, but who are lambasted, often with good reason, for being undemocratic in the way they do it.

QUOTE (Artie See @ Jul 3 2009, 04:51 PM) <{POST_SNAPBACK}>
Had the Watt & Shand building been used as the core for high-end condominiums, downtown's revitalization would have been well under way by now, as residents would have looked for local places to shop and dine. This project has the potential to make up for a small portion of that loss.


But you're assuming that high-end condos at the Watt & Shand would have gone through - would have been completed, would have been a success.

Been by the corner of North Queen and Lemon lately?

We all seem to assume that if the convention center/hotel on Penn Square had never been built, something better would have been built there instead. So and so would have developed it!

Well, maybe. Or maybe it would have met the fate of the Lancaster Press building - this structure that must be saved, but in so doing you make it virtually undevelopable, because the economics don't work without an infusion of public money, etc.

I agree entirely that an influx of wealthier city residents would be a boon. There are few things wrong with Lancaster that an increase in property values wouldn't fix.

But that gets to my gentrification point. What I mean about gentrification is - what happens if we do get that influx of wealthier residents, and property values are raised - and all of a sudden, long-time city residents are faced with increasing real estate taxes, and people who once were able to afford city living now find it LESS affordable.

Let me tell you how that discussion goes, because it goes this way in so many communities where this happens: Why do these people with all this money get to make a decision, the creation of upscale neighborhoods in what used to be "normal" city neibhborhoods forces the people out of those neighborhoods, making portions of the city unaffordable to all but this new wealth.

I mean, I can practically hear the argument on this board over this.
citydweller
7/4/09
6:24 PM
Somebody please come gentrify my neighborhood! I promise I can learn to live with a higher property value.
Artie See
7/4/09
8:29 PM
QUOTE (gsmart @ Jul 4 2009, 05:50 PM) <{POST_SNAPBACK}>
In addition to being a new, needed source of revenue, this is also a constituency - a political constituency. And it's a constituency, I believe, that would wholesale support the type of things that have been going on here, not just the convention center, but the overall aesthetic that public dollars are better spent where they can be leveraged by private dollars (however "unfair" we may think the balance between the two). The ballpark. F&M. LGH. Institutions that have made an investment in the city and in so doing have tried to create a safer, nicer city, but who are lambasted, often with good reason, for being undemocratic in the way they do it.

None of this is an issue any longer. The hotel and convention center are here, and our grandchildren will still be paying for them. The issues that you raise were important ten years ago, but since all of the above are already a done deal, it simply doesn't matter any more.

I'm not concerned about many more projects of this nature, because there simply isn't the money or the land remaining to do much more of this type of thing. Besides, the streetcar project may already be unstoppable, and I'm waiting to hear what they plan to spend our tax dollars on in the second block of N. Queen St.


QUOTE (gsmart @ Jul 4 2009, 05:50 PM) <{POST_SNAPBACK}>
We all seem to assume that if the convention center/hotel on Penn Square had never been built, something better would have been built there instead. So and so would have developed it!

Well, maybe. Or maybe it would have met the fate of the Lancaster Press building - this structure that must be saved, but in so doing you make it virtually undevelopable, because the economics don't work without an infusion of public money, etc.

I understand that not much of anything would have happened at the Watt & Shand site without a substantial infusion of taxpayer dollars. The question is this: what would taxpayers have received in return for the investment of their taxpayer dollars?

Let's say some tens of millions of taxpayer dollars had gone to subsidize condominiums and retail development in and around the Watt & Shand building. Under the LERTA program, real estate taxes would still be assessed at the original value of the property, increasing over ten years until the full assessed value of the improvements would be taxed. This would have been a fraction of the $140+ million taxpayer subsidy for the hotel and convention center project, would not have required annual subsidies, and would have paid full real estate taxes after ten years. In return for the investment of our taxpayer dollars, Lancaster City would have received a significant increase in real estate tax revenue, and practically as much real economic development as would be created by a hotel and convention center.

In other words, a smaller investment would have provided a greater return.


QUOTE (gsmart @ Jul 4 2009, 05:50 PM) <{POST_SNAPBACK}>
I agree entirely that an influx of wealthier city residents would be a boon. There are few things wrong with Lancaster that an increase in property values wouldn't fix.

But that gets to my gentrification point. What I mean about gentrification is - what happens if we do get that influx of wealthier residents, and property values are raised - and all of a sudden, long-time city residents are faced with increasing real estate taxes, and people who once were able to afford city living now find it LESS affordable.

Let me tell you how that discussion goes, because it goes this way in so many communities where this happens: Why do these people with all this money get to make a decision, the creation of upscale neighborhoods in what used to be "normal" city neighborhoods forces the people out of those neighborhoods, making portions of the city unaffordable to all but this new wealth.

I do not believe that "gentrification" would result in higher real estate assessments outside of the downtown area. Just look at "Old Towne", the area west of the intersection of Church and Vine Streets; the real estate in this area has greatly increased in value, without having a significant effect on properties immediately to the east and south.

Would portions of the city be unaffordable to all but those who are financially well off? No doubt. But look at existing examples like "Old Towne" and the Musser Park/E. Orange St. area; real estate inside these enclaves sells for ridiculous amounts of money, while a half-block away on E. Marion St. homes sell for far less than $100,000.

"Gentrification" would leave the vast majority of residents in Lancaster City far better off than the current situation. Given the reality of the current situation, there may be no reasonable alternatives remaining.
runutz
7/4/09
9:24 PM
QUOTE (citydweller @ Jul 4 2009, 06:24 PM) <{POST_SNAPBACK}>
Somebody please come gentrify my neighborhood! I promise I can learn to live with a higher property value.


Also gotta think those people are smack in the middle of your target demo.
gsmart
7/4/09
10:18 PM
QUOTE (Artie See @ Jul 4 2009, 09:29 PM) <{POST_SNAPBACK}>
"Gentrification" would leave the vast majority of residents in Lancaster City far better off than the current situation. Given the reality of the current situation, there may be no reasonable alternatives remaining.


Well, I agree with this. But I disagree entirely with your assertion that "there simply isn't the money or the land remaining to do much more of this type of thing."

There is the old Armstrong site. That is going to be the focus for years to come. And the projects are going to be large, and they will involve taxpayer subsidies. Have you considered the economic impact upon/benefit to LGH if "Obamacare" is passed - the degree to which expanded access to health care, subsidized at least in part by the taxpayers, will increase LGH's economic clout in this community? When we're talking thousands of citizens with regular health coverage for the first time - we're establishing a "need" not only general practitioners but a place for them to practice. And what if the rumored medical college were to be true?

LGH is positioned to be the primary beneficiary from this - again, leveraging public investment with private investment, or let's say institutional investment in this case.

There are still a few more "silver bullets" left in the chamber here. Whether they work or not is the question, and I think they cannot work unless you also have an influx of wealthier residents into the community, maybe living in these condos we're talking about.
WriteofPassage
7/4/09
11:04 PM
One overlooked component of this discussion of the downtown's revitalization is jobs. High end condos, while a strong component will not provide provide a continued new source of economic expansion. The convention center, Auntie Anne's, Cimbrian, an LGH expansion/college, new business openings, strategic develoment and relocation to within city limits etc. will bring new individuals into the the downtown community.

The impact of 200 new jobs is far more significant than the benefits created by 38 new families (predominantly empty nesters or singles) and will cross socio-economic boundaries. Cimbrian/Auntie Anne's relocation downtown created the need for workers new to the city to experience Lancaster on a daily basis, spending dollars, generating revenue, and promoting tangible goodwill. An LGH expansion will attract individuals relocating, as their recruitment efforts and reputation continue to garner top talent. As employees and business contacts are compelled to become a part of the community a unique domino effect will ensue......we will simpy have more new "at bats" to convey the City's merits and opportunities and capture the commensurate revenue.

What the City needs most is tangible "PR" to dissuade the prevailing attitudes within the suburbs. The convention center visitors have been "wowed" by what we have to offer, and are entering without the preconceived biases of the County as a whole. We have an entire target market of affluent, middle class, and rising families with dollar to spend who have never set foot in Central Market, sampled the Italian Bakery, eaten at Carrs, or even remotely know that a Quilt Museum, Gallery Row, or Core Source even exist. With in excess of 400,000 residents (most of whom currently spend very little time or money within city limits), Lancaster County itself harbors that source of consistent, steady income.

As for the Convention Center, we have built it, and they will come. Our challenge is getting them to (and their disposable income) to stay.
gsmart
7/5/09
2:46 AM
QUOTE (WriteofPassage @ Jul 5 2009, 12:04 AM) <{POST_SNAPBACK}>
An LGH expansion will attract individuals relocating, as their recruitment efforts and reputation continue to garner top talent. As employees and business contacts are compelled to become a part of the community a unique domino effect will ensue......we will simpy have more new "at bats" to convey the City's merits and opportunities and capture the commensurate revenue.


I agree this can be the case, so long as that "top talent" lives in "the community" - as in, the city. Certainly any money spent in the city even by those who don't live here is valuable - though the value of LGH's investment (and the ultimate taxpayer investment in whatever they might do) might be magnified if there were some mechanism to ensure that this "top talent" DOES live in the city. Subsidized housing for doctors...
Artie See
7/5/09
8:32 AM
QUOTE (WriteofPassage @ Jul 4 2009, 11:04 PM) <{POST_SNAPBACK}>
As for the Convention Center, we have built it, and they will come.

Yes, they will come. But how often, and for how long?

Even if the hotel consistently brings 200 people into downtown Lancaster night after night - which is extremely unlikely - what kind of economic impact will that have? Even if all 200 dine and shop in downtown Lancaster every day - which is extremely unlikely - how can that ever possibly justify the expenditure of over $40 million taxpayer dollars, plus $5 million in interest over 20 years, plus the lost of three-quarters of a million dollars in real estate tax revenue every year for at least 20 years?

The convention center is an even worse deal for taxpayers, with well over $100 million already spent, and an anticipated cost to taxpayers of over $1 million a year - forever - just to keep it in operation. What do taxpayers get in return? A few hundred people downtown a few times a month, and a few thousand people downtown every few months.

I agree that the hotel and convention center will bring people into downtown Lancaster. My point is that the actual cost to taxpayers is many times whatever economic impact the project may generate.

In other words, it is a very bad investment of our tax dollars.
WriteofPassage
7/5/09
11:45 AM
QUOTE (gsmart @ Jul 5 2009, 03:46 AM) <{POST_SNAPBACK}>
I agree this can be the case, so long as that "top talent" lives in "the community" - as in, the city. Certainly any money spent in the city even by those who don't live here is valuable - though the value of LGH's investment (and the ultimate taxpayer investment in whatever they might do) might be magnified if there were some mechanism to ensure that this "top talent" DOES live in the city. Subsidized housing for doctors...



Actually, I believe LGH does have a "Home in the City" downpayment program for employees moving within close proximity of the hospital. Your conceptualization could be expanded to other local businesses....it would be cost effective for residents to forgo long commutes, bad weather, etc., and frankly supports a "green initiative"....potentially capturing tax subsidies???

QUOTE (Artie See @ Jul 5 2009, 09:32 AM) <{POST_SNAPBACK}>
Yes, they will come. But how often, and for how long?

Even if the hotel consistently brings 200 people into downtown Lancaster night after night - which is extremely unlikely - what kind of economic impact will that have? Even if all 200 dine and shop in downtown Lancaster every day - which is extremely unlikely - how can that ever possibly justify the expenditure of over $40 million taxpayer dollars, plus $5 million in interest over 20 years, plus the lost of three-quarters of a million dollars in real estate tax revenue every year for at least 20 years?

The convention center is an even worse deal for taxpayers, with well over $100 million already spent, and an anticipated cost to taxpayers of over $1 million a year - forever - just to keep it in operation. What do taxpayers get in return? A few hundred people downtown a few times a month, and a few thousand people downtown every few months.

I agree that the hotel and convention center will bring people into downtown Lancaster. My point is that the actual cost to taxpayers is many times whatever economic impact the project may generate.

In other words, it is a very bad investment of our tax dollars.


Artie,

You may want to suggest to the fine folks at Marriot that they change their web listing to include convention center facilities. I was searching for a location to hold a buiness meeting in Harrisburg, and when you do a compare on the Marriot site it indicates "no" for convention center facilities.

link is below, you need to check boxes and hit compare.

http://www.marriott.com/search/findHotels.mi
Artie See
7/5/09
3:51 PM
QUOTE (gsmart @ Jul 4 2009, 10:18 PM) <{POST_SNAPBACK}>
Well, I agree with this. But I disagree entirely with your assertion that "there simply isn't the money or the land remaining to do much more of this type of thing."

There is the old Armstrong site. That is going to be the focus for years to come. And the projects are going to be large, and they will involve taxpayer subsidies.

Gil, you raise a very good point. But LGH and F&M both wield a POWERFUL political influence in Lancaster; to date, both have always gotten pretty much everything that they have ever wanted. A shifting demographic in downtown Lancaster would most likely be irrelevant in this case.


QUOTE (gsmart @ Jul 4 2009, 10:18 PM) <{POST_SNAPBACK}>
Have you considered the economic impact upon/benefit to LGH if "Obamacare" is passed - the degree to which expanded access to health care, subsidized at least in part by the taxpayers, will increase LGH's economic clout in this community?

Yes, I have considered it. I believe the most likely outcome will instead be a rationing of health care, the result of immense political and economic pressure to reduce its cost. In that case, LGH will suffer, not prosper.


QUOTE (gsmart @ Jul 4 2009, 10:18 PM) <{POST_SNAPBACK}>
There are still a few more "silver bullets" left in the chamber here. Whether they work or not is the question, and I think they cannot work unless you also have an influx of wealthier residents into the community, maybe living in these condos we're talking about.

Agreed.
reese
7/5/09
4:08 PM
LGH does have a "Home in the City" program.

Even if LGH does benefit from "Obamacare" (nice little fearmongering epithet, Gil), at least they pay taxes in one manner or another, unlike a franchised hotel sitting smack in the city. Try getting a charity room at the Marriot. But keep banging on about the evils of LGH; it makes for a good target.

The American Hospital Association is opposed to the proposals Obama has suggested regarding universal access to health care. Now why do you think that is, Gil? Could it be...$$$?
gsmart
7/7/09
10:58 AM
QUOTE (reese @ Jul 5 2009, 05:08 PM) <{POST_SNAPBACK}>
The American Hospital Association is opposed to the proposals Obama has suggested regarding universal access to health care. Now why do you think that is, Gil? Could it be...$$$?


Haven't investigated the AHA's opposition enough to know. But a few weeks back I'd done a story on how LGH convened a panel that issued a report last September citing a local shortage of doctors. And during the course of discussions, the retired surgeon at LGH who ran the panel specifically said: If you pass a national health insurance plan, what you're going to have, for the first time, are people who have not previously made regular "wellness" trips to primary care physicians (who in fact might not HAVE primary care physicians) doing so. Instead of waiting until there's an emergency and going to the emergency room - there will be this whole new demand for primary care.

I think that's probably correct, and the question is, how will this demand be met? There's already a suggestion that the federal government, via Medicare, ought to be funding more residencies. Well - LGH could expand its own residency program (but who's going to pay for that - LGH itself? Hahahahahahaha....)

Point is, health care reform, for all it will cost, also may be an economic boon to communities - and certainly could be, to the city of Lancaster, if managed correctly. But we have to recognize what's coming and the impact it may have before we even begin to think about managing it.
dowhatyoulike
7/7/09
11:16 AM
QUOTE (gsmart @ Jul 7 2009, 10:58 AM) <{POST_SNAPBACK}>
what you're going to have, for the first time, are people who have not previously made regular "wellness" trips to primary care physicians (who in fact might not HAVE primary care physicians) doing so. Instead of waiting until there's an emergency and going to the emergency room - there will be this whole new demand for primary care.


Isn't there already a subset of that phenomena with people turning 65, and entering the Medicare system?
jethrob
7/7/09
11:23 AM
Property taxes are a lousy way to run schools and municipalities. At least the way PA does it with a municipal boundary ever 50 feet.
reese
7/8/09
6:46 PM
QUOTE (gsmart @ Jul 7 2009, 10:58 AM) <{POST_SNAPBACK}>
Haven't investigated the AHA's opposition enough to know. But a few weeks back I'd done a story on how LGH convened a panel that issued a report last September citing a local shortage of doctors. And during the course of discussions, the retired surgeon at LGH who ran the panel specifically said: If you pass a national health insurance plan, what you're going to have, for the first time, are people who have not previously made regular "wellness" trips to primary care physicians (who in fact might not HAVE primary care physicians) doing so. Instead of waiting until there's an emergency and going to the emergency room - there will be this whole new demand for primary care.

I think that's probably correct, and the question is, how will this demand be met? There's already a suggestion that the federal government, via Medicare, ought to be funding more residencies. Well - LGH could expand its own residency program (but who's going to pay for that - LGH itself? Hahahahahahaha....)

Point is, health care reform, for all it will cost, also may be an economic boon to communities - and certainly could be, to the city of Lancaster, if managed correctly. But we have to recognize what's coming and the impact it may have before we even begin to think about managing it.


Before you start making claims/broad speculations about who is going to profit from what, you need to do your research. Seriously. I know this is just a blog, but still, you need to post responsibly. Have you been seriously following the health care reform issue? Researching it? "Post and run" quips won't do.
reese
7/8/09
9:20 PM
Yeah. Hospitals are just thrilled at the prospect of "Obamacare."

Biden Rolls Out Deal With Hospitals to Cut 155B in Costs
Artie See
7/9/09
6:41 AM
This thread is about "the affluent and the influential". Somehow, it is ironic that it has mutated into a discussion about health care.

Note that it is people who can actually afford decent health care who are most opposed to government intervention.

Nearly a quarter of all Americans are either uninsured or underinsured. Millions of Americans have been forced to declare bankruptcy through no fault of their own because of a health problem, including many who actually did have what they thought was good health insurance. Thousands and thousands of Americans have died needlessly because they couldn't afford to maintain the same level of health care as the affluent and the influential.

Is someone who earns less money less of a human being than the affluent and the influential? Should someone be allowed to die just because they don't make as much as others?

Or, should anyone who cannot afford health insurance - including those who lost their coverage because they became too ill to work - simply be allowed to die prematurely? Should survival of the fittest be our national policy?
gsmart
7/9/09
6:59 AM
QUOTE (Artie See @ Jul 9 2009, 06:41 AM) <{POST_SNAPBACK}>
This thread is about "the affluent and the influential".


And the point is, the already-affluent, LGH, may find itself in a position to become more affluent.

LGH is not merely a "hospital." It is a health care system. (Indeed, go to its home page - it's not Lancaster General Hospital, it's Lancaster General Health). And two months ago, Dr. Lawrence Bonchek - who ran the "Lancaster Medical Manpower & Education Study Commission," said this:

"When you have [an estimated] 50 million people who are uninsured and you give them health insurance, demand for medical care is going to go up exponentially," Bonchek said.

Here in Lancaster, Lancaster General is already uniquely positioned to be the provider of that medical care - and sees what's coming down the pike, and is preparing for it, so that it's position of affluence and influence in this community is reinforced - if not strengthened.
reese
7/9/09
7:21 AM
QUOTE (gsmart @ Jul 9 2009, 06:59 AM) <{POST_SNAPBACK}>
And the point is, the already-affluent, LGH, may find itself in a position to become more affluent.

LGH is not merely a "hospital." It is a health care system. (Indeed, go to its home page - it's not Lancaster General Hospital, it's Lancaster General Health). And two months ago, Dr. Lawrence Bonchek - who ran the "Lancaster Medical Manpower & Education Study Commission," said this:

"When you have [an estimated] 50 million people who are uninsured and you give them health insurance, demand for medical care is going to go up exponentially," Bonchek said.

Here in Lancaster, Lancaster General is already uniquely positioned to be the provider of that medical care - and sees what's coming down the pike, and is preparing for it, so that it's position of affluence and influence in this community is reinforced - if not strengthened.


I see you are beyond reason, Gil. I'll leave you to hating on LGH.

I agree with what you say, Artie. Those of us who have been devoted to this issue feel strongly that one's personal wealth should have nothing to do with access to health care.
Artie See
7/9/09
7:59 PM
QUOTE (gsmart @ Jul 9 2009, 06:59 AM) <{POST_SNAPBACK}>
And the point is, the already-affluent, LGH, may find itself in a position to become more affluent.

LGH is not merely a "hospital." It is a health care system. (Indeed, go to its home page - it's not Lancaster General Hospital, it's Lancaster General Health). And two months ago, Dr. Lawrence Bonchek - who ran the "Lancaster Medical Manpower & Education Study Commission," said this:

"When you have [an estimated] 50 million people who are uninsured and you give them health insurance, demand for medical care is going to go up exponentially," Bonchek said.

Here in Lancaster, Lancaster General is already uniquely positioned to be the provider of that medical care - and sees what's coming down the pike, and is preparing for it, so that it's position of affluence and influence in this community is reinforced - if not strengthened

I believe you are oversimplifying the issues.

Consider what happens when 50 million people who are uninsured get health insurance. Obviously there will be a spike in demand over the short term; but what will happen when 50 million formerly uninsured people start to get a reasonable amount of preventative care over a long period of time? Given a few years, there will be a significant drop in the amount of acute care required, as people gradually become healthier. In the long term, the growth in demand for health care should decrease significantly.

Cost containment will be a major part of any health plan. Already there have been spirited discussions about the effectiveness of newer and more expensive medications and procedures. The only way this will work is if a good hard look is taken at what is worthwhile, and what is wasteful. It is inevitable that more complex and expensive (read "profitable") medications and procedures will increasingly NOT be covered by health insurance. This will become a major obstacle in LGH's future expansion plans.
lanzate
7/9/09
9:23 PM
QUOTE (Artie See @ Jul 9 2009, 07:59 PM) <{POST_SNAPBACK}>
I believe you are oversimplifying the issues.

Consider what happens when 50 million people who are uninsured get health insurance. Obviously there will be a spike in demand over the short term; but what will happen when 50 million formerly uninsured people start to get a reasonable amount of preventative care over a long period of time? Given a few years, there will be a significant drop in the amount of acute care required, as people gradually become healthier. In the long term, the growth in demand for health care should decrease significantly.

Cost containment will be a major part of any health plan. Already there have been spirited discussions about the effectiveness of newer and more expensive medications and procedures. The only way this will work is if a good hard look is taken at what is worthwhile, and what is wasteful. It is inevitable that more complex and expensive (read "profitable") medications and procedures will increasingly NOT be covered by health insurance. This will become a major obstacle in LGH's future expansion plans.



You are looking at your body like it is a car. Take it for regular oil changes and costs of repair will be cheaper over the long term. But going to the doctor is not the equivalent of getting an oil change. Going for a 30 min walk would be more like it. I know many people who are now without health insurance and for the most part they are unconcerned about it because they eat right and treat their body right. For myself i was several years without insurance in my 20's but i have not seen a doctor since i was a kid even though i now have insurance. People don't seem to realize that you can be healthy without a doctor.

The dems in congress are looking at these healthy people living happily without insurance and saying hey we need to bring them into the system so they can take on some of the risk from all these people who's healthcare cost too much.

If the government can force everyone to pay up for health care why can't they make everyone get off their tush and walk.










WriteofPassage
7/9/09
10:00 PM
As LGH reinvests the yeoman's share of available funds directly back into the community, it is not creating affluence for itself, it is creating opportunity and health for Lancaster County. Visiting their homepage, you will notice the community alliances that they endow (PALCO for example, which treated 8500 underserved patients since 2007).

As a community, we need to worry far less about the indirect beneficiaries of affluence and wealth, and far more about creating sustainable prosperity at both the individual and municipal levels.

We cannot look towards increasing wealth at the price of moral and ethical bankruptcy. Absent reform our healthcare delivery system will continue to let millions of uninsured Americans suffer at the hands of bureacratic negligence. Increased access to preventative care will help curtail illness, regulation of providers and drug companies will decrease corporate price gouging, and the simple "peace of mind" dividend of knowing that you will have access to health care go much further toward enriching quality of life than continuing the perpetual "jockieying" of special interests that impede true progress.

reese
7/9/09
10:29 PM
QUOTE (WriteofPassage @ Jul 9 2009, 10:00 PM) <{POST_SNAPBACK}>
As LGH reinvests the yeoman's share of available funds directly back into the community, it is not creating affluence for itself, it is creating opportunity and health for Lancaster County. Visiting their homepage, you will notice the community alliances that they endow (PALCO for example, which treated 8500 underserved patients since 2007).

As a community, we need to worry far less about the indirect beneficiaries of affluence and wealth, and far more about creating sustainable prosperity at both the individual and municipal levels.

We cannot look towards increasing wealth at the price of moral and ethical bankruptcy. Absent reform our healthcare delivery system will continue to let millions of uninsured Americans suffer at the hands of bureacratic negligence. Increased access to preventative care will help curtail illness, regulation of providers and drug companies will decrease corporate price gouging, and the simple "peace of mind" dividend of knowing that you will have access to health care go much further toward enriching quality of life than continuing the perpetual "jockieying" of special interests that impede true progress.



Excellent post that sums up why we need reform and why reform does not automatically =$$$ profits.
Kate
7/11/09
12:46 PM
Taking back tax breaks for non-profits???

http://online.wsj.com/article/SB124718085849920111.html
gsmart
7/12/09
2:05 AM
QUOTE (Artie See @ Jul 9 2009, 08:59 PM) <{POST_SNAPBACK}>
but what will happen when 50 million formerly uninsured people start to get a reasonable amount of preventative care over a long period of time? Given a few years, there will be a significant drop in the amount of acute care required, as people gradually become healthier.


I disagree entirely.

What happens is that medical technology continues to increase, so that by the time people "become healthier" as a result of increased access to health care, there will be additional cures - additional therapies - to be purchased by the health care dollar. Medicine and medical technology is always going to be out ahead of the curve, because medical care is poised to become one of the pillars of the new, emerging economy.

Eds and meds, bud - I wrote about it a while back. And don't get the idea that I oppose it, because what else is there? But how are those institutions going to meet their civic obligation? Isn't that the underlying issue right now?
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