This article seems to point up a real good reason to vote for Jim Horn for a seat on the PDHCD governing board. DO Messrs Tharasari and Goldberg think we just fell off the turnip cart - that the District board would fall for a gambit like this?


Pipeline proposes support to district

https://www.sonomawest.com/sonoma_west_times_and_news/news/pipeline-proposes-support-to-district/article_c619217a-8b20-11e6-b635-6b1351d453ff.html?mode=story




Will Pipeline Health take over
Sonoma West Medical Center's admin?

Posted: Wednesday, October 5, 2016 10:25 am
by Amie Windsor Sonoma West Staff Writer [email protected]

Conflicts of interest concerns arise with hospital management

Palm Drive Health Care District (PDHCD) could have its administrative functions taken over by Pipeline Health, the organization that recently took over management of Sonoma West Medical Center (SWMC). The proposal was on Monday night’s agenda, causing concern and fear amongst board members, PDHCD staff, consultants and the public.

“I was really puzzled when I read this [on the agenda],” Board member Sandra Bodley said. “From what I see, where would we have any objective oversight?”

The proposal, dated Sept. 21, came from SWMC’s interim chief executive officer Luke Tharasri, a principal with Pipeline, and SWMC’s treasurer, Stewart Goldberg. It suggests that, per the management services agreement (MSA) between SWMC and PDHCD, which states that SWMC will provide management support for the functioning of the district, that Pipeline “absorb the administrative functions of the district into the current contract with SWMC at no additional cost.”

The proposal offers to provide financial management, as well as management of community services, public meetings, compliance reporting and public outreach, effectively eliminating the district’s executive director position, held by Alanna Brogan.

“This is something I thought of while sitting at the LAFCO hearing,” held on Sept. 7, Tharasri said. “I was thinking of the anticipated loss [of funds from the potential detachment]. We don’t mean to replace anything. We mean to provide bench strength to the district.”

Tharasri approached PDHCD Board President Jim Maresca with the idea, who instructed Tharasri to draw up a proposal.

“After we saw the detachment was imminent, Luke came to the board with the idea,” Maresca said. “As fiduciaries of taxpayer money, we need to take a look at that.”

Should detachment of the Rio Nido, Guerneville and Forestville school districts be approved by LAFCO, the Local Agency Formation Commission, this Wednesday, the district is poised to begin receiving reduced bond money and funds as early as next year.

Maresca said the proposal was similar to the arrangement the district held when Brim Healthcare received a three-year contract to manage Palm Drive Hospital in late 2009.

“When the district had the contract with Brim, the hospital CEO served as the de facto executive director of the district,” Maresca said.

Brim’s contract didn’t last long, adding to the pattern of management turnover at both the hospital and district. Board members and district staff on Monday night feared the same pattern could happen should Pipeline take over the district’s administration functions.

“With all due respect, Pipeline has only been here three months,” Brogan said. “Should you walk away, the district will have no structure.”

Brogan believed the district would better be served by looking at this proposal in another six to 12 months.

“It’s just too early right now,” Brogan said.

Bodley agreed the district could be in trouble should Pipeline leave or produce CEO turnover.

“The district faces issues with staff turnover,” Bodley said. “The executive director has created stability for the district. Before we eliminate the [executive director] position, we should evaluate it.”

The district’s attorney, Bill Arnone, said the proposal wouldn’t create any “technical conflicts of interest” but would put the district in an interesting position with Pipeline and SWMC.

“This would put Pipeline in an oversight position to review compliance issues…to see if SWMC is complying with the MSA,” Arnone said. “Who else would look at it? It eliminates the only person of non-volunteer status to provide oversight. You would no longer have the executive director to review compliance.”

As of Monday, Arnone was the only attorney to review the three-page proposal.

Attending public agreed with Arnone, fearing the firewall between the hospital and district would be entirely eliminated.

“Maybe there’s no conflict of interest,” said Jim Horn, PDHCD board candidate. “But there’s a conflict of loyalty. I think if Pipeline is controlling the finances from front to back, A to Z, there’s way too much potential for conflicts of interest.”

The district board was divided Monday night, with Maresca and board member Dennis Colthurst wanting to see a hashed-out version of a transition plan in December. Board members Marsha Sue Lustig and Bodley, however, believed a transition plan was a premature step to take and suggested that Tharasri and Brogan meet to create a feasibility study of options for reducing the district’s overall administrative costs.

“I want to see the types of contracts available,” Lustig said. “If you come back with a transition plan, I don’t feel all options will have been discussed.”

Although the item was listed as an action item on the agenda, no action was taken. Rather, staff was instructed to create a feasibility study to be presented to the new board in December.