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Elected Boards No Way to Run a Hospital
The outrageous and disruptive antics of the Tri-City Healthcare District's elected board in Oceanside, CA tell a cautionary tale about why it's a bad idea to let voters choose who governs a hospital.
The primary fiduciary responsibilty of a non-profit hospital board is NOT to the facility but to charitable purponses and the public. According to Lois Lerner, Director of the IRS Exempt Organization Division, for hospitals: "To qualify for tax-exemption, they must show that they provide benefit to a class of people, broad enough to benefit the community, and they must be operated to serve a public rather than a private interest." Source: Statement by Lois Lerner, Director of the IRS Exempt Organizations Division, on the IRS Report on Nonprofit Hospitals, at a Press Briefing, Feb. 12, 2009 http://www.irs.gov/pub/irs-tege/lernerstatement_hospitalproject_021209.pdf
Unless the courts step in, there will be no process for self-governance and self-correction. It's a shame to place the patients and employees at risk.