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Mayor puts the spending brakes on hospital deal

Posted: Monday, August 30, 2010

Kenai Peninsula Borough Mayor Dave Carey will not allow the hospital's governing board to spend any more money on the possible change of governance decision.

The onus of the process should fall on the Kenai Peninsula Borough Assembly, Carey announced Friday in a letter to Thomas Boedeker, Central Peninsula General Hospital, Inc.'s president.

"CPGHI is not authorized to continue negotiations with LHP, incur new financial obligations, or take further significant actions regarding governance and ownership unless or until directed to by the assembly," Carey said. As borough mayor, Carey is the administrator of CPGH Inc.'s lease.

The spending freeze takes effect Sept. 7, which is the same day that the assembly will consider an ordinance that would allow CPGH Inc. to sign a letter of intent with LHP Hospital Group.

Read the full story in Tuesday's Clarion.

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