UMMS affiliate hospitals also have deals with board members. Maryland lawmakers want reforms there, too.
UMMS has endured the wrath of lawmakers upset that the medical system entered into contracts with the companies of nearly a third of its board of directors -- particularly because several of them were no-bid deals. The outcry resulted in the resignations of seven board members, including the UMMS CEO and
Now, Hogan and state lawmakers want the 10 separate affiliates within UMMS to reassess business ties with their own unpaid board members, totaling millions of dollars, and consider the same sweeping reforms.
"The governor expects that the new UMMS board will introduce tougher ethics standards, and extend those standards to affiliate hospitals," said
House Minority Leader
Over the past five years, some board members at affiliate hospitals reported business ties with the institutions they govern, according to
The majority of affiliate board members did not report having anything to disclose in recent years. In 2018, of the more than 130 board members at the affiliates, 14 disclosed business dealings as required by state rules.
They include some of the region's top developers and property owners, a telecommunications executive, insurance administrators and doctors with medical practices. Some UMMS board members also have substantial business with the affiliates.
All three -- major contributors to various candidates in
Regan reported that Whiting-Turner, a national construction company based in
Another Whiting-Turner executive,
St. John and Streett each reported hundreds of thousands of dollars in business dealings with the
Several affiliate board members who are doctors -- some with high-level positions at UMMS institutions -- reported that their practices held contracts with the institutions they oversaw, amounting to hundreds of thousands of dollars.
Those boards, he said, "have the autonomy to select members based on many factors, including relevant local expertise of the individuals and needs of the respective organizations."
Schwartzberg said some of the contracts held by affiliate board members predate those members' board service. He said that others -- including Streett's -- are consistent with "fair market value," a standard for tax-exempt organizations. The
Schwartzberg said Whiting-Turner had business with the system before Regan joined the UMMC board in 2015, that Palmer joined the St. Joseph board in 2016, and both men recused themselves from board discussions about their firm's projects. He said Whiting-Turner's contracts with UMMC were competitively bid, but he did not answer questions about the company's contracts with other system hospitals.
Schwartzberg said
The new UMMS-related law requires state auditors to review contracts of UMMS board members. It also bars state and local elected officials from serving as board members, and limits board tenures to 10 years.
The law stops short of mandating reforms at the system's affiliate hospitals. However, bill sponsor Sen.
This week, Kipke, an
"We assume that the message was received. We assume that this will filter down to the affiliate boards," said Del.
Del.
"This issue with the UMMS board is a good thing to shine the light on all of the hospital boards -- regardless of whether they are in the UMMS family or under another umbrella," the
The spotlight on UMMS began in March after Carter introduced her bill and
Since then, system officials have acknowledged some of those contracts were sole-source contracts -- including for Pugh's self-published "Healthy Holly" books totaling
UMMS CEO
Former state Democratic Sen.
The Kellys have said they welcome the UMMS review. John Kelly said last month that Kelly executives have disclosed the company's business ties with UMMS, which reported to the
Whiting-Turner recently advertised for subcontractors for two projects with
An executive assistant to Regan said the CEO does not speak to the media, and he could not be reached otherwise.
St. John reported on his state disclosure form that
Representatives for St. John did not return calls seeking comment.
Streett, a
Streett owns 50 percent of
Streett did not respond to a request for comment.
Schwartzberg, the UMMS spokesman, said the terms of
In addition to their board seats and contracts, Regan, St. John and Streett have contributed tens of thousands of dollars in recent years to political campaigns in
The construction and real estate deals are only a portion of the system contracts or financial interests held by UMMS affiliate board members, according to
In 2016, Republican
Comcast executive
UMMS board member
___
(c)2019 The Baltimore Sun
Visit The Baltimore Sun at www.baltimoresun.com
Distributed by Tribune Content Agency, LLC.
JCP&L Conducts Annual Storm Restoration Drill to Help Employees Prepare for Real-Life Events
CORRECTING and REPLACING AmTrust Announces Quarterly Cash Dividends on Preferred Stock
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News