As state AG's increasingly utilize their jurisdiction over non-profit organization governance they are having to face their responsibilities when hospitals find themself in trouble.  

The bold action recently taken by Ma AG Martha Coaxley when faced with a sobering report on the operation of six Catholic hospitals in eastern Massachusetts might serve as a harbinger of things to come.

The bottom line is that a report that the AG had commissioned reported that the Caritas Christi Health Care system had serious governance and financial problems.  Owned by the Archdiocese of Boston who had been unable to find a Catholic purchaser, AG Coakley announced on May 20 that the Archdiocese had agreed to give up control of the hospital system.

The Attorney General's office approved a plan that leaves the Archdiocese with "veto power over major strategic moves, including major transactions, Catholic identity, bylaw and charter changes as well as the hiring of the president and chief executive officer." The AG's office also reported that, "Under the amended Bylaws, Caritas will be governed by a 16-person Board of Governors, three of whom shall be appointed by the Archdiocese, one of whom shall be appointed by the Dominican Sisters of the Presentation, one of whom shall be the President and Chief Executive Officer of Caritas serving ex-officio and the balance shall be elected by the Board."   

AG Coakley had previously identified the need for the Archdiocese to release control over "over strategic, operational, and financial matters of Caritas while retaining influence only over matters of religious direction" as the most compelling priority. 

The number of hospitals that are in trouble is growing.  My prediction is that AG's will have to begin to turn their direction to what they are doing to do about it when it lands in their lap.

 
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Re: Ma AG and Hospital Regulation - Catholic Hospitals retructured
by Mark on Fri 04 Jul 2008 05:55 AM PDT |  Profile |  Permanent Link
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