And this on U.S. Rep. Mike Ross deserves its own item:
Ross whined yesterday that his health industrial complex funding has not included campaign contributions from the pharmaceutical industry (by which he apparently means drug makers, not drug sellers, as we shall see). No, he’s gotten better than campaign contributions from the pharmaceutical industry. He was made a rich man by a chain pharmacy. An independent, non-profit journalism organization, Pro Publica, is raising questions about the deal.
Arkansas Rep. Mike Ross — a Blue Dog Democrat playing a key role in the health care debate — sold a piece of commercial property in 2007 for substantially more than a county assessment [2] (PDF) and an independent appraisal [3] (PDF) say it was worth.
The buyer: an Arkansas-based pharmacy chain with a keen interest in how the debate plays out.
Ross sold the real estate in Prescott, Ark., to USA Drug for $420,000 — an eye-popping number for real estate in the tiny train and lumber town about 100 miles southwest of Little Rock.
“You can buy half the town for $420,000,” said Adam Guthrie, chairman of the county Board of Equalization and the only licensed real estate appraiser in Prescott.
But the $420,000 was just the beginning of what Ross and his pharmacist wife, Holly, made from the sale of Holly’s Health Mart. The owner of USA Drug, Stephen L. LaFrance Sr., also paid the Rosses $500,000 to $1 million for the pharmacy’s assets and paid Holly Ross another $100,0001 to $250,000 for signing a non-compete agreement. Those numbers, which Ross listed on the financial disclosure reports he files as a member of Congress, bring the total value of the transaction to between $1 million and $1.67 million.
And that’s not counting the $2,300 campaign contribution Ross received from LaFrance two weeks after the sale closed.
Coincidence that Ross has been carrying the mail for drug stores in the health care debate?
UPDATE: Shocker, we actually got an e-mail from Ross’ staff. Late this afternoon, he responds to Pro Publica story. “Gotcha” journalism, he says. Needless to say he provides no fuller accounting of how he jackpotted on sale of his drug store to a major drug chain, except to say the real estate sale price was justified. The $500,000 in assets; the non-compete; further employment arrangements? No detailed discussion of those, such as comparable drug store sales. He also says he welcomes debate. Perhaps he could start by taking phone calls from reporters. Full text on jump.