Archives for category: For-Profit

I am more than a little touchy on the subject of for-profit takeovers of hospitals that serve the community. That happened in my neighborhood a few years back. The city sold a major hospital to a for-profit firm. The hospital eventually went bankrupt and was sold off and converted to other uses. This hospital saved my life in 1998, when I walked in to the emergency room, short of breath and limping. As it happened, I had an advanced pulmonary embolism. Had I not gone to the hospital, I would not have survived the night, said the pulmonary specialist the next morning.

Larry Edelman of The Boston Globe in his column called Trendlines tells the story of what happened to a small chain of hospitals that served high-needs communities:

The hound from hell

It was a match born of voracity and desperation, as many private equity buyouts are. Cerberus Capital Management hit a home run with Steward Health Care. But Steward may be about to go down swinging.

Rewind: In 2010, Cerberus agreed to bail out Caritas Christi Health Care, a struggling network of six Catholic hospitals serving mainly poorer communities in cities including Boston, Brockton, Fall River, and Methuen.

The New York firm paid $246 million in cash, assumed more than $200 million in pension liabilities, and promised to invest $400 million in the company, rechristened Steward Health Care.

When the deal was announced, a Cerberus executive told the Globe it was “a big win for the hard-working communities of Greater Boston.’’

Fast-forward: After a national expansion, Steward is on the ropes. Last week, the Globe’s Jessica Bartlett broke the news that the company — now owned by a group of physician-managers — is having trouble paying rent and may have to sell or close hospitals.

But the deal was a big win for Cerberus. It cashed out of Steward in early 2021, quadrupling its money with an $800 million gain, according to Bloomberg.

The backstory: Cerberus bought Caritas Christi four years after a blockbuster hospital deal: the 2006 leveraged buyout of HCA for $21 billion by Kohlberg Kravis & Roberts and Bain Capital of Boston.

The sheer size of the acquisition — and the involvement of two respected firms — supercharged a health care buyout binge that extended beyond hospitals to nursing homes, physician practices, and home health providers.

Cerberus jumps in: After taking a high-profile beating on its 2007 bet on Chrysler, Cerberus saw an opportunity to profit on a turnaround of the “St. Elsewhere”-esque Steward. The plan: buy up other hospitals around the country, deploy new technology, improve efficiency, control costs, and bill Medicare and Medicaid as aggressively as possible.

It was a vision adeptly articulated by Dr. Ralph de la Torre, Caritas’ chief executive officer who remained in charge under Cerberus.

But it was a tough slog for the cardiac surgeon. His expansion plans were thwarted, and Steward didn’t make any money until 2015, when a reduction in pension payments put it in the black.

The big breakthrough: The following year Steward sold its hospital properties for $1.2 billion to Medical Properties Trust, a real estate investment trust that also paid $50 million for a 5 percent stake in the company.

Steward, which leased the properties back from Alabama-based MPT, earmarked the proceeds to buy more hospitals and pay down debt. It also returned Cerberus’ initial investment, though the firm held on to a controlling stake in the company.

In effect, de la Torre had landed a new financial backer, letting Cerberus off the hook.

“We look forward to expanding our relationship with Steward in the years ahead,” MPT chief executive Edward K. Aldag Jr. said at the time.

And MPT did just that in 2017, writing a $1.4 billion check and buying an additional $100 million of Steward equity. De la Torre used the money to buy IASIS Healthcare, a $2 billion purchase that gave Steward 18 hospitals in Arizona, Arkansas, Colorado, Louisiana, Texas, and Utah, making it the largest for-profit chain in the country.

The next year de la Torre moved the company’s headquarters to Dallas, where taxes are lower and regulations lighter.

Minimal disclosure: As a private company, Steward isn’t required to make its financial statements public. Moreover, it has largely ignored Massachusetts requirements that it file detailed financial information on an annual basis.

But publicly traded MPT discloses some Steward financials because the chain is its largest tenant, accounting for about 20 percent of revenue. That’s how we know that Steward booked operating losses of $322 million in 2017 and $270 million in 2018.

Steward’s leaseback deal with MPT significantly boosted its expenses, but as Jessica reported, the health system blames its dire financial straits on rising interest rates and labor costs, an increasing Medicaid population, and difficulty collecting bills.

MPT has been hit hard by Steward’s woes. Its stock tumbled nearly 40 percent after it announced earlier this month that Steward was having trouble paying rent.

Moreover, COVID clobbered all hospitals. Despite receiving government pandemic aid and hundreds of millions of dollars in loans from MPT, Steward is strapped.

Good timing: Cerberus was out before the bedpan hit the fan.

In May 2020, it swapped its stake with Steward doctors in exchange for a note paying interest. Then, in January 2021, Steward borrowed $335 million from MPT to pay off the debt.

Cerberus was free and clear.

Parting thought: It’s not the only time the firm — named after the three-headed dog that guards the gates of Hades in Greek mythology — scored big on a company that went bust.

It did well on its buyout of Mervyn’s by selling off the department store chain’s real estate before it went bankrupt. And it recouped its investment and then some at arms maker Remington by paying itself a dividend before the company went broke. Such strategies are common in private equity.

You see, when firms like Cerberus do business, it’s often “heads I win, tails you lose.”

Sam Wineburg is the Margaret Jacks Professor Emeritus of Education at Stanford University. This essay is based on his latest book, with co-author Mike Caulfield, Verified: How to Think Straight, Get Duped Less, and Make Better Decisions about What to Believe Online (University of Chicago Press, 2023). Here, he highlights the ways that corporations deceive students with advertising that looks like news.

Our Kids Are Being Sold to and They Don’t Know It–

And Neither Do We

A recent California bill mandating the teaching of media literacy cites a Stanford University study showing that “82 percent of middle school pupils struggled to distinguish advertisements from news stories.” Along with my Stanford colleagues, I was the author of that study.

Between 2015-2016 our research team collected nearly 8,000 student responses. In one exercise, we asked middle school students to examine the home page of Slate, the online news magazine. The site was organized as a series of tiles, each with a headline, the name of the author, and an illustration. However, some tiles were author-less, such as “The Real Reasons Women Don’t Go into Tech,” which was accompanied by the words sponsored content. This label notwithstanding, the vast majority of middle schoolers believed that “The Real Reasons Women Don’t Go into Tech” was news.

 

If only the solution to students’ confusion were as simple as teaching what “sponsored content” means.  In the past few years, a dizzying array of terms—“in association with,” “partner content,” “presented by,” “crafted with,” “hosted by,” “brought to you by,” or, simply—and enigmatically—“with”—have been concocted to satisfy the Federal Trade Commission requirement that ads be labeled. As we describe in our new book, Verified: How to Think Straight, Get Duped Less, and Make Better Choices What to Believe Onlineit’s not only middle school students who are getting hoodwinked by this farrago of terms. We all are. 

 

Researchers at Boston University and the University of Georgia surveyed people across age levels and backgrounds after they had read a 515-word article, “America’s Smartphone Obsession Extends to Online Banking.” The article came with a label saying that it was created for the Bank of America. But the disclosure was overshadowed by the masthead of The New York Times and the article’s headline. Only one in ten respondents identified the article as an ad. The marketing firm Contently found similar results: 80% of respondents mistook an ad in the Wall Street Journal for a news article. The study’s author, an advertising insider with reasons to downplay the obvious, admitted: “There’s little doubt that consumers are confused by native ads.” 

 

Native ads, so-called because they’re designed to fade into the surrounding “native” content, use the same fonts, color schemes, and style as regular news stories. An article may look like news, written by an independent and trustworthy journalist, but in reality, it’s tainted by the agenda of the company that paid for it. You think you’re being informed only to find out—if you do find out—that you’re being swindled. In 2018 native advertising raked in $32.9 billion, eclipsing all other forms of digital advertising and growing at astronomical rates.

 

 

At first, it was only scrappy upstarts like BuzzFeed (masters of clickbaity stories like “Ten Important Life Lessons You Can Learn from Cats”) that pioneered this new form of advertising. But as ad income plummeted in places like The New York Times, the Wall Street Journal, and the BBC, they, too, got in on the game. Initially, the price didn’t seem too steep: sacrifice a modicum of integrity to stay afloat. But the slope downward was slippery. If the long-standing commitment of journalism was to erect a wall of separation between the news side and the business, native advertising dissolved the mortar in the wall. The resulting seepage blurred the boundaries beyond recognition. Publishers tried to convince themselves they weren’t doing anything wrong. But in their heart of hearts, they knew they were engaging in journalistic hanky-panky. “When I explain what I do to friends outside the publishing industry,” wrote one publishing insider, “the first response is always ‘so you are basically tricking users into clicking on ads.’ ”

 

In 2019, after a stream of headlines bemoaning the confusion caused by misinformation, we undertook a second study. This time our sample matched the demographic make-up of high school students across the country. Over 3,000 students with access to a live internet connection participated. One exercise asked them to evaluate items appearing on the website of The Atlantic.  The first, entitled “Why Solving Climate Change Will Be Like Mobilizing for War,” was written by Venkatesh Rao; the second, “The Great Transition,” featured an infographic about energy usage along with the statement, “saving the world from climate change is all about altering the energy mix.” The logo of The Atlantic appeared in the upper left corner next to a hyperlink with the words “Sponsor Content What’s this?”, next a small yellow shell. Two-thirds of high school students failed to identify the infographic as an ad from Shell Oil.

 

Why should we be concerned?  To start, if students are to become informed citizens, they need to understand that multi-national companies are not in the business of helping humanity or adopting stray animals. Their goal is to please shareholders by increasing profits. Fossil fuel companies, especially, may want us to think they’re on the right side of history when it comes to climate change. But actions speak louder than ads. Clean energy investments by big oil companies (“renewable resources” as the Shell ad calls them) represent a mere sliver, one percent, of their yearly capital expenditures, a pittance compared to what they spend exploring and discovering new ways to dredge fossil fuels from the earth and sea. Shell might not be outright lying in its infographic but we can be sure of one thing: they’re not going to pay for something that casts them in a negative light. The whole point of native advertising is to burnish a company’s image. Instead of having us view Shell as the enemy of climate change, its ads are designed to soften us up, to plant a seed of doubt. “OK, they may be an oil company,” we’re supposed to think, “but maybe—just maybe—they’re really trying.” 

 

We can sum up why we should teach students to be skeptical of Shell’s infographic in three words: conflict of interest. It goes against the company’s interest to be forthright about the harmful effects of fossil fuels. Big oil, writes Harvard professor Naomi Oreskes and author of Why Trust Science, “may be a reliable source of information on oil and gas extraction,” but they are “unlikely to be a reliable source of information on climate change.” Why? For one simple reason: “The former is its business and the latter threatens it.”

 

It’s not just big oil who’ve gotten in on the native ad game. With China and Russia leading the pack, foreign governments spend millions of dollars to place “news” stories in leading digital publications like the Washington Post, the Wall Street Journal, and the Chicago Tribune. In the twelve months from November 2019 to October 2020, the China Daily Distribution Corporation funneled over nine million dollars to influence American audiences. A favored venue was MSN, Microsoft’s web portal, which featured an upbeat story about how Tibet, the nation ravaged by China in a brutal 1950 takeover, had “broken free from the fetters of invading imperialism and embarked on a bright road of unity, progress and development.” Nowhere does the article say the story was paid. You only discern this if you recognize “Xinhua” as China’s state-run news agency.

 

Whether paid for by a multi-national corporation or a foreign government, the goal of native advertising is the same: to persuade us when our guard is down. Sponsors know that if their message were plastered with the word “ad” in big red letters, we’d ignore it. At the same time, it’s important to understand that just because something’s an ad doesn’t necessarily mean it’s false. Big companies are wary of ads backfiring. They fear the consequences of being outed as liars. Persuasion can assume many forms in addition to outright lying. An ad can tell only part of the story. It can leave out the broader context. It can ignore evidence that goes against the story a company or foreign nation wants to tell. It can emphasize some facts and de-emphasize others. It can use examples that tug at our heartstrings, even when those examples misrepresent general trends. In fact, a partial truth is often more dangerous and harder to detect than a pack of lies. 

 

The internet is one giant marketing experiment and today’s students are the guinea pigs. Richly compensated PhDs work diligently figuring out how to deceive them without their noticing.  This deception is not an aberration or bug in the system—it’s how the game is played. Our students are part of a treacherous game. If we don’t teach them how it’s played, who will? 

 

Certainly not Shell Oil. 

————    

Sam Wineburg is the Margaret Jacks Professor Emeritus of Education at Stanford University. This essay is based on his latest book, with co-author Mike Caulfield, Verified: How to Think Straight, Get Duped Less, and Make Better Decisions about What to Believe Online (University of Chicago Press, 2023)

David Sirota’s blog “The Lever” is a source of excellent investigative reporting. It recently revealed that President Biden is taking on Big Pharma. Some advocates said he needed to go further, but this is a huge opening move to establish the principle that the federal government may cap the prices of drugs developed with public money. The following was written by Katy’s Schwenk.

White House Takes On Pharma Patents

The White House plans to exercise its authority to lower the price of costly medications that were developed with public funding — a potentially powerful new tool in the battle against sky-high medication prices.

The Biden administration announced last week that it had concluded, after a months long review, that it had the authority to break the patents of drugs developed with public funding if their cost was too high. This authority — dubbed “march-in rights” — has never been used, and is likely to encounter major pushback from Big Pharma.

Take, for instance, the case of the drug Xtandi, which is used to treat prostate cancer. The drug was developed at the public University of California, Los Angeles, using federal funding from the National Institutes of Health and the U.S. Army. The university then licensed the drug to a pharmaceutical company called Medivation, which is now owned by Pfizer, and the Japanese pharmaceutical behemoth Astellas. Pfizer and Astellas have made billions selling the drug worldwide. In the U.S., Xtandi costs on average $190,000 a year, more than five times higher than in Canada and Japan.

The Bayh-Dole Act, which was passed more than 30 years ago, allows the federal government to use march-in rights to intervene if drugs developed with public money are not being made accessible to the public. Despite Xtandi being more or less a perfect case for the use of this authority — a cancer drug developed with public money being sold at an egregious premium — the Biden administration declined to use march-in rights in March to seize the patent and allow a generic competitor to enter the market, forcing down the drug’s cost.

Since then, though, federal officials have been reviewing march-in authority. And now, the White House’s announcement signals that they may begin using it to fight drug profiteering.

While the announcement is a critical step forward, the White House’s framework has still drawn some blowback from some advocacy groups for being less aggressive than it could be. In this week’s announcement, the Biden administration implied it would exercise march-in rights only in the most extreme cases of price gouging by Big Pharma. “Where most drug prices already are egregious and force rationing, few drugs will seem ‘extremely’ priced by comparison,” argued the consumer advocacy group Public Citizen.

But even the prospect of limited use of march-in rights has stoked fear in the pharmaceutical industry, which is spending more than ever to oppose drug pricing reforms. Industry groups have already declared their opposition to the measure. It’s a sign of how much is at stake for Big Pharma — and for those paying a premium for life-saving medication.

Arthur Goldstein retired recently after a long career as a high school teacher in New York City. Now that he is registered on Medicare, he is outraged that his union (the United Federatuon of Teachers) is pressuring retirees to join a Medicare Advantage plan. Should that happen, the city government would save $600 million a year but the 250,000 retirees would be pushed into a plan that (unlike Medicare) may deny service and may not be accepted by all doctors. In this post, he points out that some hospitals no longer accept Medicare Advantage.

Full disclosure: I too am affected by what happens to the city’s retirees. I am covered by my spouse’s secondary. The retirees have sued the city and won repeatedly, because they were promised Medicare when they started their careers, not a for-profit health plan that could deny services that their doctors recommend. The city and its unions intend to appeal the judgments they lost in court. If the city prevails, we will stay on Medicare and buy our own secondary, a decision that many retired municipal workers cannot afford.

He writes:

Most developed countries have some form of national health care. That’s important, because frankly, there is nothing more important than health. It really makes me sad when I see fund-raisers for musicians or artists who have health issues. In Canada, for example, these artists wouldn’t need to resort to GoFundMe, or whatever.

In the United States, there are very few forms of public health care. We have Medicaid for those with low income, and Medicare for those with high ages. I’ve been on Medicare since July, and I can’t tell you how thrilled I am to see doctors and not pay co-pays. Of course, that entails having a Medigap program that covers the 20% Medicare does not.

As a teacher, I’ve heard a lot about value-added. Bill Gates sent his people to our school and tried to initiate a program to place cameras in rooms to find out just what those teachers who got higher test scores did differently. I can tell you, though, that I can teach the very same lesson to two groups of kids and get wildly different results. (It’s odd that education experts like Gates don’t know those things.)

It’s very, very hard to measure the value an individual teacher adds, and I’d argue that test scores are a very small portion of that value. In fact, given the quality of standardized tests, I might argue their results show nothing, or even less than nothing. 

Health care is another thing entirely. UFT President Michael Mulgrew, NYC Mayor Eric Adams, and their BFFs on the Municipal Labor Committee want to take Medicare away from not only me, but also every New York City retiree. They want to place us in a plan administered by Aetna. I can tell you precisely what value Aetna adds to Medicare—none whatsoever. 

Aetna, along with every so-called Medicare Advantage plan, takes a cut of what the government contributes to Medicare. How do they make money? They make money by paying doctors less, and by denying care they deem unnecessary. Mulgrew says Aetna will pay doctors the same Medicare does, and that may be true. But it may not be permanent. Mulgrew is always “improving” our health care by having us pay more. Which experienced city employee doesn’t believe he’d improve it further by paying doctors less? 

Mulgrew originally tried selling Advantage by saying every doctor who took Medicare would take this plan. But when members asked their doctors if that were true, they learned it was not. Is Mulgrew a liar? Well, if he isn’t, he’s woefully uninformed. Either way, it renders him unfit to lead a group which, to a very large function, regulates the health care of its members.

Mulgrew can tell retirees that this hospital, or that group of hospitals will take this plan or that. But that may not last. Hospitals are dumping Advantage plans in large numbers. 

Enticed by incessant TV ads blaring every night with those fictional characters Martha and Karen and that old shill Joe Namath pushing plans, especially those with zero premiums, more converts have signed up for potentially less health care coverage and more out-of-pocket expense when illness strikes. In return, they are told they may have no monthly premium and receive a grab bag of goodies like grocery cards and a handful of toiletries. Those goodies may be less attractive, however, when that health plan makes you wait weeks for a diagnostic test to see if you have cancer or will only pay a small portion of the bill if you do.

Do you really believe that health care companies would spend millions of dollars on advertising out of the goodness of their hearts? Do you think that their offers of this or that really mean you and yours will receive better care? I think that, if I sign up for a Medicare Advantage plan, millions of dollars that should be spent toward my health care will go to pay Joe Namath. Many, many more millions will go to Aetna, or whatever parasitical entity is withholding health care and medical compensation to profit off of me and my fellow Americans.

Aetna is not interested in your health. Aetna is interested in profiting from your health, or lack thereof.

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A quick recap: Governor Ron DeSantis declared war on “woke” in Florida, and the Legislature obligingly passed laws criminalizing the teaching of certain topics, like anything to do with gays, Black history, or attention to diversity, equity and inclusion. The Disney Corporation, the biggest employer in the state, spoke out against the law known popularly as “Don’t Say Gay,” because some of its employees at Disney World in Orlando were gay. DeSantis was outraged that Disney defied his will, so he persuaded the Legislature to dissolve the Reedy Creek District, which was controlled by Disney and provided services to DisneyWorld and contiguous communities. In the future, Disney World would be controlled by a special board appointed by DeSantis. The members of the new board were friends and allies of DeSantis. Disney is suing to regain control of its district, but in the meanwhile DeSantis’s board is dispensing contracts to loyal friends of the Governor.

Scott Maxwell of the Orlando Sentinel reported:

Some winners have emerged in Gov. Ron DeSantis’ ongoing battle with Disney: political insiders who scored lucrative six-figure jobs and contracts as the culture war fight unfolded.

DeSantis vowed to bring a new era of accountability, but more than eight months into a state takeover, the Central Florida Tourism Oversight District’s new administration is facing mounting scrutiny and scathing employee exit surveys.

“You do see a pattern here that people who are politically connected are getting work,” said Richard Foglesong, a Rollins College professor and author of the book “Married to the Mouse” on Disney World’s origins. “Maybe that shouldn’t be shocking. Is that insiderism? I guess you could call it that.”

Glen Gilzean, a close DeSantis ally, landed a $400,000-a-year job leading the district, which provides government services to Disney World. His candidacy was helped by Michael Sasso, a DeSantis-appointed board member who also was the best man in Gilzean’s wedding over the summer.

The DeSantis-appointed board chose Gilzean overseveral other candidates, including William Sturgeon, a former city manager of St. Cloud, a city with a population of more than 60,000.
“It was political,” Sturgeon said. “The place is falling apart. My professional opinion is they have too many state-orientated people in there, and state and municipal government are two different things.”

Sturgeon said he likes Gilzean, but the district needs a leader with a background in local government. Before landing the job at the district, Gilzean served as CEO of the Central Florida Urban League, a civil rights and advocacy organization.
Another applicant, Winter Park City Manager Randy Knight, said he had a brief conversation with the tourism oversight district’s board chair before submitting his resume, but he never heard back.

As administrator, Gilzean selected Paula Hoisington, chairwoman of the Central Florida Urban League’s board, to serve as his chief of staff at the tourism oversight district. Public records show she started at an annual salary of $195,000 and was recently promoted to deputy district administrator, getting a $55,000-a-year raise.
Ronald Haag, a legislative aide to former state GOP Rep. Fred Hawkins, was brought in to serve as Gilzean’s executive assistant.

Hawkins, R-St. Cloud, sponsored the legislation overhauling Disney’s special district. He’s since left the Legislature, landing a job to lead South Florida State College despite having no experience in higher education.

The district also hired Brandy Brown, who worked as director of strategic initiatives in DeSantis’ office. Public records show, though, that she only worked briefly as the tourism oversight district’s director of external affairs before leaving. The district did not respond to questions about her departure.

The governor’s office defended the new administration and dismissed the characterization that political favoritism has permeated the district, which since 1967 was effectively controlled by Disney.

DeSantis has said the arrangement allowed Disney to enjoy a “special privilege” that no other theme park operator enjoyed in Florida.

The Governor pushed to seize state control of what had been called the Reedy Creek Improvement District after Disney criticized what critics call the “don’t say gay” law that bans discussion of sexual orientation or gender identity in public schools.

“CFTOD [Central Florida Tourism Oversight District] appointing those they believe are qualified for certain positions isn’t cronyism,” Jeremy Redfern, a DeSantis spokesman, said in an email. “Cronyism is a local government that served as a Corporate Kingdom for over 50 years. The ‘criticism’ from the cronies indicates that the District is doing the right thing.”

No-bid contract under fire

The district’s purchasing decisions have also raised questions.

Most recently, the district backpedaled on a $242,500 no-bid contract awarded to a DeSantis’ appointee to help upgrade the 911 network. That work went to Freddie Figgers, who served alongside Gilzean on the Florida Commission on Ethics.

Facing scrutiny after media reports, the district canceled that contract at Figgers’ request. District officials, though, say the deal met exceptions for competitive bidding outlined in their purchasing policy.

The district also agreed to pay conservative George Mason University law professor Donald J. Kochan $110,000 to help produce a report and make recommendations to the Florida Legislature.
The district’s purchasing rules include competitive bidding exceptions for consultants and experts hired to prepare reports for the legislature.

Conservative all-star legal team

Two politically connected law firms stand to make millions in legal fees from the district as part of the state’s court battle with Disney. One is a boutique Washington, D.C., firm favored by DeSantis in his culture war legal battles, and another is an upstart firm launched by a retired Supreme Court justice.

The DeSantis-aligned board hired Washington-based Cooper & Kirk, agreeing to pay its lawyers $795 an hour. One of the partners in that law firm is Adam Laxalt, a longtime friend of DeSantis who was hired to lead the Never Back Down super PAC supporting the governor’s presidential campaign.

Lawson Huck Gonzalez, which was founded by three legal heavyweights earlier this year, bills $495 an hour. The firm’s founders include Alan Lawson, a retired Florida Supreme Court justice; Paul Huck Jr., once called the “godfather of the Federalist Society in Miami”; and Jason Gonzalez, who’s advised DeSantis on judicial picks.

In another column following the one just posted, Maxwell wrote about new revelations of no-bid contracts at the new DeSantis entity.

He wrote:

Two weeks ago, we learned members of the governor’s new Disney district awarded a $240,000 contract to a a political insider without letting other companies even bid on the job.

The fact that this no-bid contract went to one of the state’s top ethics officials was vintage Florida.

But it turns out that was the tip of the insider-dealing iceberg at the former Reedy Creek district.

As the Sentinel revealed Sunday, another political pal scored a no-bid deal under even more suspect conditions when the district’s board chairman helped award a $495-an-hour legal contract to a lawyer who helped the chairman get his powerful post overseeing Disney in the first place.

Yes, back when Martin Garcia wanted to impress the state Senate, which confirms all of Gov. Ron DeSantis’ appointments to the Disney board, Garcia listed plugged-in GOP attorney Jason Gonzalez as a reference. Then, after Garcia got the job, he voted to give Gonzalez’s law firm a $495-an-hour contract without letting other firms even apply.

Seems the most magical thing about this new Disney board is how it made any premise of ethical government disappear.

And there’s more. As the Sentinel’s Skyler Swisher reported, a former board member who helped district director Glen Gilzean score his $400,000-a-year job was also the best man at Gilzean’s wedding.

This looks less like a public agency and more like a fraternity of political profiteers — the Florida chapter of Tappa Tappa Trough, where the only thing being chugged is tax dollars.

The editorial board of The Orlando Sentinel called on members of the Legislature to stand up to DeSantis and limit his power to damage DisneyWorld. The editorialists fear that DeSantis might return from his failed presidential campaign and impose his rage on DisneyWorld. To prevent this, the Legislature must act.

It’s time for lawmakers to break the spell DeSantis has cast, and rewrite the law to curb his power and restore some semblance of ethics, accountability and trust to the district’s operations. After this editorial was published, we learned that Sen. Linda Stewart is working on legislation to undo the attack on local control. Other lawmakers should stand with her. If they don’t, Central Florida’s economy could be so devastated that not even wishing on a star will save it.

Is it possible that we might learn from other countries’ experience of “school reform”? Why not start with Sweden?

The Swedish education minister just called for a major overhaul of Sweden’s all-choice system. Critics of the Education Minister believe that her reforms will have no effect “because it proposes that only when new, privatized schools have proved good effects/results for some years they would be able to take out a profit for owners/shareholders. But no one gets the money back the first years. So what?” (Sara Hjelm)

The consequences of widespread “marketization”have been bad for education and bad for Swedish society.

The Guardian reports:

Sweden has declared a “system failure” in the country’s free schools, pledging the biggest shake-up in 30 years and calling into question a model in which profit-making companies run state education.

Sweden’s friskolor – privately run schools funded by public money – have attracted international acclaim, including from Britain, with the former education secretary Michael Gove using them as a model for hundreds of new British free schools opened under David Cameron’s government.

But in recent years, a drop in Swedish educational standards, rising inequality and growing discontent among teachers and parents has helped fuel political momentum for change.

A report by Sweden’s biggest teachers’ union, Sveriges Lärare, warned in June of the negative consequences of having become one of the world’s most marketised school systems, including the viewing of pupils and students as customers and a lack of resources resulting in increased dissatisfaction.

Now Lotta Edholm, a Liberal who was appointed schools minister last year during the formation of Sweden’s Moderate party-run minority coalition, has launched an investigation into the issue which, she said, would oversee her plans for reform.

“It will not be possible [in the reformed system] to take out profits at the expense of a good education,” she told the Guardian at the ministry of education and research in Stockholm.

Edholm said she planned to “severely limit” schools’ ability to withdraw profits and to introduce fines for free schools that did not comply.

“It can’t be that the state pumps in lots of money so that you can improve your business and at the same time a portion of that money goes out to you as profits. That we will put a stop to,” she said.

The largest profits were made by upper secondary schools, known in Sweden as gymnasieskola, she said. “There it has been easier to make profits through having bad quality.”

There are thousands of friskolor – directly translated as “independent schools” but known as “free schools” – across Sweden, with a higher proportion in cities. About 15% of all primary schoolchildren (six- to 16-year-olds) and 30% of all upper secondary school pupils (16- 19-year-olds) go to a free school.

Edholm said she could not put a number on how many schools were experiencing these issues but said the problem lay in the system itself. “It’s not just a problem that it is a number of schools, but it becomes a system failure of everything.”

If you missed the 10th annual conference of the Network for Public Education, you missed some of the best presentations in our ten years of holding conferences.

You missed the brilliant Gloria Ladson-Billings, Professor Emerita and formerly the Kellner Family Distinguished Professor of Urban Education in the Department of Curriculum and Instruction at the University of Wisconsin-Madison.

Ladson-Billings gave an outstanding speech that brought an enthusiastic audience to its feet. She spoke about controversial topics with wit, charm, wisdom, and insight.

Fortunately, her presentation was videotaped. If you were there, you will enjoy watching it again. If you were not there, you have a treat in store.

Thom Hartmann is a remarkably well-informed journalist and blogger. In this article, he traces the history of the Republican war on one of our nation’s most important democratic institutions: its public schools.

He writes:

I remember when the USSR launched Sputnik, the first satellite to orbit the Earth. It was the fall of 1957, I was six years old, and my dad and I watched it arc over our house from our back yard one clear October night. My best friend’s father, a ham radio operator, let us listen on his shortwave radio to the “beep beep beep” it was emitting when it was over North America. I’d never seen my dad so rattled.

That dramatic technological achievement lit a major fire under the Eisenhower administration and Congress. In his January 27, 1958 State of the Union address, Republican President Eisenhower pointed to Sputnik and demanded Congress fund a dramatic transformation of America’s educational system:

“With this kind of all-inclusive campaign, I have no doubt that we can create the intellectual capital we need for the years ahead, invest it in the right places–and do all this, not as regimented pawns, but as free men and women!”

In less than a year Congress wrote and passed the National Defense Education Act that poured piles of money into our schools and rolled out programs for gifted kids.

I was lucky enough to be enrolled in one of those in 1959: by the time I left elementary school I was functioning at high school and college levels in math, science, and English. I’d had two years of foreign language and two years of experimental music instruction. IQ tests were all the rage: mine was 141 and my best friend, Terry, was 142, something he never let me forget.

Most all of those programs died over the following decades as a result of Reagan’s war on public schools, which began with his bringing private religious school moguls like Jerry Falwell and bigots like Bill Bennett into the White House.

Repudiating Eisenhower’s embrace of public education, Reagan put Bennett in charge of the Department of Education, which Reagan had campaigned on shutting down altogether. Bennett is probably best known for defending his proclamation that:

“If you wanted to reduce crime you could, if that were your sole purpose, you could abort every Black baby in this country, and your crime rate would go down.”

Much like Bennett back in the day, the catch phrase among white supremacists and their fellow travelers today is that “Western Civilization” is either under attack or at risk because we teach history, tolerance, and critical thinking skills in our public schools, which are often racially integrated. The answer, Republicans will tell you, is to defund our public schools.

When Reagan was elected in 1980, the federal share of total education spending in America was 12 percent; when he left office in disgrace in 1989 amid “Iran/Contra” rumors he’d cut a deal with the Iranians to keep the American hostages to screw Jimmy Carter, that share had collapsed to a mere 6 percent. (It’s 3 percent today.)

Reagan also wanted to amend the Constitution to allow mandatory school prayer, and unsuccessfully proposed a national tax credit — a sort of tax-system-based national voucher system — that parents could use to send their kids to religious schools like Falwell’s.

Ever since Reagan’s presidency, the core of Republican positions on public education have been five-fold:

1. Let white students attend schools that are islands of white privilege where they don’t have to confront the true racial history of America,
2. Use public money to support private, for-profit, and religious schools that can accomplish this (and cycle some of that money back to Republican politicians),
3. Destroy public schools’ teachers’ unions,
4. End the teaching of science, critical thinking, evolution, and sex ed, and,
5. Bring fundamentalist Christianity into the classroom.

Earlier this year, Republican Senator Marco Rubio called America’s public school system a “cesspool of Marxist indoctrination.”

“Dangerous academic constructs like critical race theory and radical gender theory are being forced on elementary school children,” Rubio wrote for the American Conservative magazine, adding, “We need to ensure no federal funding is ever used to promote these radical ideas in schools.”

There is no more powerful urge humans can experience than to protect and defend our children. For most people it beats hunger, sex, and money. So if you’re a politician looking for an issue to motivate voters, just tell them their children are under attack. It’s cynical, but effective.

In an interview for Semafor, Trump’s Secretary of State Mike Pompeo laid it out:

“I tell the story often — I get asked ‘Who’s the most dangerous person in the world? Is it Chairman Kim, is it Xi Jinping?’ The most dangerous person in the world is [American Federation of Teachers President] Randi Weingarten. It’s not a close call. If you ask, ‘Who’s the most likely to take this republic down?’ It would be the teacher’s unions, and the filth that they’re teaching our kids…”

Just a few months ago, Donald Trump laid out his plan to deal with the “major problem” America is facing: “[W]e have ‘pink-haired communists teaching our kids.’”

Turning the Constitution upside down and arguing the Founders intended to protect teaching schoolchildren religion, Trump elaborated, arguing that mixing religion, politics, and education was the intention of that document:

“The Marxism being preached in our schools is also totally hostile to Judeo-Christian teachings, and in many ways it’s resembling an established new religion. We can’t let that happen. For this reason, my administration will aggressively pursue intentional violations to the establishment clause and the free exercise clause of the Constitution.”

As Jonathan Chait wrote for New York magazine:

“More ominously, at every level of government, Republicans have begun to act on these beliefs. Over the past three years, legislators in 28 states have passed at least 71 bills controlling what teachers and students can say and do at school. A wave of library purges, subject-matter restrictions, and potential legal threats against educators has followed.”

This isn’t the first time elected officials have used public education as a political weapon. In 1844, 25 people died and over 100 were severely injured in riots in Philadelphia over whether there should be daily Bible readings in that city’s schools. Two churches and several city blocks of homes were burned to the ground.

The Scopes Monkey Trial of 1925 didn’t provoke riots, but was a major event in the history of public education. Tennessee high school teacher John Scopes was charged and convicted of the crime of teaching evolution. Mississippi and Arkansas joined Tennessee in passing laws making such instruction a crime that stood until the 1967 repeal of the Butler Act.

While Republican Glen Youngkin successfully rode a wave of white outrage about Critical Race Theory to the governor’s office in Virginia, polls suggest the issue is really only meaningful to a fragment of the American electorate: a subset of Republican voters. 

The annual PRRI American Values Survey found:

“Americans overwhelmingly favor teaching children history that includes both the good and bad aspects of our history so that they can learn from the past, versus refraining from teaching aspects of history that could make them feel uncomfortable or guilty about what their ancestors did in the past (92% vs. 5%).

“There are no substantial partisan differences, though Republicans favor excluding aspects of history slightly more (7%) than Democrats and Independents (both 4%). There are few differences across religious traditions or demographics. This consensus holds up across different levels of exposure to critical race theory: 92% of those who have heard a lot about critical race theory, 94% of those who have heard a little, and 93% of those who have heard nothing about it state that we should teach children the good and bad of history.”

Nonetheless, they note:

“[A] majority of Republicans (54%), compared with 27% of independents and only 7% of Democrats, believe that teachers and librarians are indoctrinating children.”

America spent $794.7 billion on primary education last year. For-profit private schools and churches that run schools look at that pile of money and drool. Republicans are committed to delivering as much of it to them as possible, regardless of the damage it does to our nation’s schoolchildren.

Their strategy for privatizing our public schools is pretty straightforward, and echoes the plan of action Republicans are using right now to replace real Medicare with the privatized Medicare Advantage scam.

First, they falsely claim that they’ll deliver a better product at a lower cost. In the education realm, we see this with Florida and several other Red states now offering vouchers that can be used at private or religious schools to every student in the state.

(Nearly 2,300 private schools in Florida accept vouchers, but “69 percent are unaccredited, 58 percent are religious, and nearly one-third are for-profit.”)

As more and more students use the vouchers to flee public schools, the public schools sink into deeper and deeper financial troubles. Those cut the quality of teaching and upkeep of the school buildings, causing even more students to use the vouchers.

Because the vouchers never cover the full cost of private school tuition (typically they pay for half to two-thirds), the truly poor can’t use them: the result is the public school system becomes ghettoized, leading to even more flight by middle- and upper-class (white) people.  

Once the public schools are dead and the state has transitioned entirely to private schools, the state will claim budget problems and begin to dial back the amounts available for vouchers. (The same will happen with Medicare Advantage once real Medicare is dead.)

This will widen the relationship between the educational and wealth divides; the racial and class cleavage will become so great that the state will have effectively gone back to a “separate but equal” educational system. Which, of course, is the GOP’s goal.

Republicans are generally convinced that when people have a good, well-rounded education they will vote for Democrats, who explicitly value science and egalitarian social values. Thus, keeping our kids ignorant and destroying one of America’s largest unions, all while helping their education and religion industry friends get rich, is a complete win-win.

As conservative commentator Benjamin Weingarten writes:

“Red states are increasingly engaging in a broad push to purge public institutions of a Wokeness antithetical to the values and principles of their constituents…

“Yet at root, it is the schools — where our children spend much of their waking hours — that have disproportionate influence over American society, seeding every other institution that has succumbed to left-wing ideological capture. …

“It is incumbent on lawmakers and their appointees to use every lever of power they can, within every educational institution under their purview, to combat the divisiveness and forcible conformity engendered by DEI, CRT, and the like and to replace it with a system rooted in the values and principles on which Western civilization is based.”

Much of this battle is playing out in state houses around the country, but there’s a huge and well-funded effort to take control of local school boards as well. David Pepper has a great post in his Pepperspectives Substack newsletter about how to spot the extremists and GOP shills at election time.

Bottom line: the Republican war on public education is real, and if we want to stop it we must get involved. 

Lobby your state legislators and either run for your local school board or support good people who are. 

Our children’s and grandchildren’s futures are literally at stake.

As The Guardian explains, McKinsey is the most influential management consulting company in the world. Presidents, kings, and corporations hire them to get their expert advice. When I worked for Bush 1 in the early 1990s, youngsters from McKinsey met frequently in the White House to give advice on education policy; by their age, it was apparent that none had ever been a teacher. McKinsey has been hit with numerous scandals, but nothing seems to stick.

The Guardian article includes a link to John Oliver’s brilliant takedown of McKinsey. Don’t miss it.

Oliver demolished charter schools in 2016. If you missed it, watch it now.

If that link doesn’t work, try this one.