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Healthcare is Big Business

Valley by the Numbers:

• Annual profit averaging $28 million--not bad for a not for profit institution exempt from any income or property taxes
• Estimated $225 million in cash and investments build up over the years
• Only $45 million in long term debt with considerable unused borrowing capacity

The 'RENEWAL' proposal will cost over $1.0 billion including the associated borrowing costs for long term tax exempt bonds.

While Valley has an attractive cash hoard and substantial borrowing capacity, the full cost is enormous relative to their present revenue base.

The recent Governor's Commission Report highlights the surplus of patient bedding particularly in Northeast Bergen County with more hospital closures expected.

Less costly and risky patient care alternatives such as acquiring Pascack Valley in bankruptcy have not been offered to the Ridgewood public.

Valley's "Renewal" plan raises serious concerns about the long term viability of their hospital's finances. We don't need another Pascack Valley folly!

If the 'RENEWAL' plan is approved, significantly higher patient revenues will be required just to cover the higher costs:

• Hospital rates going up despite increasing pressures to restrain costs by the government and private insurers
• More patients coming from outside Valley's traditional service area with accompanying road traffic
• Additional costly demands on Ridgewood's infrastructure

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