Utah struggling to handle 500-pound gorilla - IHC

Pignanelli: Since 1975, when the LDS Church transferred control of its hospitals to Intermountain Health Care, this nonprofit company has provided a quality health care to millions. (Two of my children were born in LDS Hospital.) Its charitable activities, which LaVarr expounds on below, are a part of our culture. Yet, a majority of state senators are enthusiastic co-sponsors of legislation targeting IHC. This includes a bill that imposes a 3 percent tax on IHC's gross receipts, amounting to $100 million a year.

IHC officials dismiss these activities as baseless and prompted by their competitors. As a former general counsel and current lobbyist for Regence Blue Cross Blue Shield of Utah, I am subjective on this issue. Nevertheless, I can state unequivocally that no insurance company is behind this legislation — we would not risk the retaliation. Legislators are reflecting the seething anger that has been building for years. IHC desires a Mother Teresa image but is perceived as Darth Vader in financial and contractual matters. (A "Star Wars" theme is the preferred analogy among politicos when describing IHC: i.e., the corporation is the "Empire," outspoken unaffiliated doctors are the "Rebel Alliance," the soon-to-be built megahospital is the huge spherical battleship "Death Star," etc.)

There is much behind this animosity. IHC controls more than 52 percent of the hospital beds in Utah, and with 450,000 enrollees is the state's largest health insurance company (Regence has 415,000). The company is ruthless when exercising monopolistic power during contract negotiations. Only those insurance companies that send all their patients to IHC hospitals are given the best rates — which further undermine the fledgling competition. If you ever want an earful of strong emotion, just ask your physician his/her opinion of IHC. Underlying this angst is the nonprofit/non-tax advantages IHC exclusively enjoys. There are repeated rumors the vertically integrated company shares this benefit among all its operations. More telling is the concern that IHC has deviated from its original mission of care bequeathed to it. Others believe IHC unfairly markets its religious heritage. The story on Capitol Hill is a child recently asked his lobbyist father why hospitals have "church names" — i.e., LDS, Primary and McKay.