Minimizing conflicts of interest
Most readers know about the new hospital plans for I-65 and Veterans parkway that has been in the news for the past couple of years and will probably be built in the next 18 months or so.
After much thought, review and input from CPA’s, personal financial counselors and attorney’s, our physician group (Physician Associates of Floyds Knobs LLC) had decided in 2006 to invest in the endeavor. Our investment was going to be three percent and the terms had changed late in the year and therefore final papers have not been signed.
With the election of myself as the Vice Chief of Staff in November and my partner appointed as one of the new Board members in January, it became a conflict of interest to have this investment. After very personal conversations with friends, colleagues, the Board Chairman, and attorneys, our group has withdrawn from any vested interest in the hospital.
We believe any significant conflict would be a detriment to our roles at Floyd and we want to minimize and eliminate any and all possible perceptions.
After much thought, review and input from CPA’s, personal financial counselors and attorney’s, our physician group (Physician Associates of Floyds Knobs LLC) had decided in 2006 to invest in the endeavor. Our investment was going to be three percent and the terms had changed late in the year and therefore final papers have not been signed.
With the election of myself as the Vice Chief of Staff in November and my partner appointed as one of the new Board members in January, it became a conflict of interest to have this investment. After very personal conversations with friends, colleagues, the Board Chairman, and attorneys, our group has withdrawn from any vested interest in the hospital.
We believe any significant conflict would be a detriment to our roles at Floyd and we want to minimize and eliminate any and all possible perceptions.
Labels: conflict of interest
posted by Anonymous at 4:15 PM
15 Comments:
Kudos to you for putting your loyalties & responsibilities to FMH before your opportunities to earn some investment dough. Its very indicative of where you true desire lies....
Kudos?? For spending the last year intending to invest in a competitor while bad mouthing Floyd Memorial and encouraging negativism within the staff? Why did it take so long to see this as a conflict of interest?
dio...,
I kind of see your point BUT HB was elected VCOS not long ago and his partner was appointed even more recently. I don't see length of time as an issue. It was the right thing to do and they did it.
One question I do have concerns this statement:
"After very personal conversations with friends, colleagues, the Board Chairman, and attorneys, our group has withdrawn from any vested interest in the hospital."
Did it really take all these people to decide that a COI would arise? Even for a "gray minded" person like me, it would seem black and white.
For me, the issue isn't when he became vice chief of staff. During the time he was bashing the hospital and its management and pretending to be a friend of the employees, he fully intended to become an investment partner in a facility which would depend on diverting business from the Floyd and Clark hospitals in order to be profitable. Despite criticizing anonymous posters for not revealing potential biases, he clearly misrepresented his own financially driven bias.
Like Iamhoosier, I am at a loss to understand why it took so long for HB to recognize the obvious. Did he finally reach this conclusion as a result of careful self-refection or was he (and his partner) forced to make a choice by the board chairman?
Wow diogenestrainee you are still bashing HB. Why did you discontinue your blog if you are going to continue bashing HB? Were you not getting the attention or volume of hits on your site?
HB wasn't bashing the hospital; he was pointed out flaws that needed to be fixed for the success of the hospital. HB has shown loyalty to the employees, he has invested a lot of time to try and improve their work environment.
I think he needed to spend time and counsel on this decision. It was a very important business decision that shouldn't have been made lightly. I am glad he made the decision he did, but I also would understand if he went the other direction.
Cut HB some slack and quit trying to make an issue out of everything he says and does! It is getting old.
If you will actually read my earlier postings, I generally speak to issues that HB raises rather than engaging in personal attacks. This situation, however, is clearly one that involves integrity and calls into question his motivatives and real allegiance. Trying telling your spouse that he/she should be proud of you because after a long period of flirtation and actual planning for an affair, you decided not to consumate the relationship.
Employees who fed information to HB expecting that he was working on their behalf, might reflect on the fact that for some extended period, he fully intended to become a partner in an enterprise which could potentially threaten their employment and benefits (health insurance, pensions, etc.).
Wonder if HB attended the meeting when FMH received the latest award. Only 256 Hospitals naationwide--out of 5000 was recognized. Maybe they should have read this blog. Sounds to me like
healthblogger is the only one that
has a problem with FMH. Article said the Paris Education Room was packed with enthusiastic employees.
So by all accounts I would think that things are moving forward at FMH regardless of how HB feels about the Administration.
See Article in Wed.- Feb.14-The Tribune-Page A3
Come on diogenestrainee. Threaten their jobs and pensions? Jewish Hospital didn't think the additional capacity of Floyd's new heart wing was needed either. The new hospital will not have to divert patients from Floyd and Clark hospitals -- they're usually doing the diverting of patients themselves.
HB was at the presentation in the morning and the room was not packed.
Some employees came in for the free food and drink only.
Administration sent one of their own out trying to recruit physicians to actually attend the meeting.
Get your facts straight before you pop off.
Anonymous 12:53,
You'd better believe the new hospital will be a threat to the well-being of employees at Floyd and Clark. Just Google the subject and you will find scores of articles about doctor owned hospitals "cherry-picking" the most profitable procedures and leaving community hospitals with the job of covering indigent care with a smaller income base. The new facility won't increase the number of potential procedures; it will just split the existing number into smaller pieces. If the new hospital is established like similar facilities around the country, it will not offer benefit packages comparable to what the Floyd and Clark folks now have. Most new companies of all types no longer offer company paid pensions, for example. The hospital will have to pay taxes and will be expected to produce a profit for the investors, so they will not be able to match benefits for displaced workers who move there?
Did he finally reach this conclusion as a result of careful self-refection or was he (and his partner) forced to make a choice by the board chairman?
No, it was the Purity Ball that did him in. I'm sure there is a lot of second thoughts after that evening.
Doesn't the county pay you an annual lump sum to cover indigents?
If you are referring to my posting, you will note I said I wonder if HB attended the meeting,
I can tell I really struck a nerve by wondering. You will have to admit, the article was very flattering to the employees of FMH.
I would hate to admit that I was an employee that attended just for free food and drink. Maybe these are the wonderful, caring employees that HB speaks so eloquently of. I would call people that did this "Freeloaders"
Competition is a great thing in every industry -- except mine.
If HB is so interested in FNHHS as he claims, why does he continue to send his outpatient procedures to places other than FMHHS?
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