Wednesday, April 05, 2006

Hospital Ready to Sue Portland Over Tram 

Oregon Health & Science University (OHSU) has filed notice that it will sue the city of Portland if the city does not come up with an extra $10 million or so to finish the aerial tram that is to connect OHSU's hospital with the South Waterfront (So What) district. The university says that the city is obligated to complete the tram under an agreement reached in 2003. The city says it is obligated to complete the tram only if someone else puts up the money.

Portland blogger Bill McDonald observes that OHSU, as a semi-public institution, has obtained a cushy deal from the legislature allowing it to escape any more than $100,000 liability in the event of malpractice. Recently, for example, the hospital admitted negligence in a case that led a young boy to suffer permanent brain damage, but only had to pay the boy's family $100,000 in compensation, which is far less than it is costing to care for him. McDonald suggests that the city pay OSHU no more than $100,000 to complete the tram. (Many transit agencies enjoy similar liability limits, so I suppose if the tram ever fails, it too will enjoy limited liability.)

OHSU's president earns a salary of $600,000 a year, making him one of if not the highest paid public employee in Oregon. He lives in a mansion provided for him by the state, meaning he pays no property taxes on it, so won't have to worry about the increased taxes other Portland property owners will have to pay to cover the tax waivers, tax-increment financing, and other subsidies to the So What District and its aerial tram.

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