Maverick County Hospital District Board refuses to retain legal counsel to review contract with Fort Duncan Regional Medical Center

By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.

The Maverick County Hospital District (MCHD) Board of Directors refused to retain special legal counsel and financial consultants to review its contract with Universal Health Systems dba Fort Duncan Regional Medical Center at their regular board meeting held on Wednesday, July 30, 2014, at the Second Floor Conference Room located at 3406 Bob Rogers Drive.

At their April 30, 2014 MCHD Board of Directors meeting, an Agenda item called for the restriction of the Hospital District’s reserve funds. During the discussion, Interim CEO William Worrell recommended that the MCHD restrict part of their approximately $18 million reserve funds for payment to Universal Health Systems dba Fort Duncan Regional Medical Center (UHS) as a result of a 2000 buy-sell agreement between the parties while others suggested reserving approximately $13,5 Million. MCHD Board President Juan Manuel “Chuco” Farias asked his fellow Board members if any of them had any suggestions on what to do. Board member Ricardo E. Calderon suggested that the MCHD retain special legal counsel and financial consultants to review the 2000 agreement between the MCHD and Universal Health Systems dba Fort Duncan Regional Medical Center to determine the Hospital District’s obligations, responsibilities, and options concerning this 25 year long agreement, which does not allegedly expire until 2025. Board Secretary and Treasurer Humberto Duran concurred with Calderon’s suggestion and noted it would be a worthy endeavor to look into. Board President Farias stated that he would place this item on a future meeting agenda for discussion and possible action. Board President Farias is a member of the Universal Health Systems dba Fort Duncan Regional Medical Center’s Advisory Board of Directors. The Board tabled the agenda item to a future meeting regarding the restriction of its reserve funds.

MCHD Board President Farias failed to place this item on the May and June 2014 regular Board meetings, causing Board member Calderon to write to President Farias to remind him of the April 30th Board meeting discussion to place on the agenda the discussion and possible action to retain special legal counsel and financial consultants to review the 2000 agreement between MCHD and UHS. MCHD Board President and Fort Duncan Regional Medical Center Advisory Board Member Farias finally placed this noteworthy item on the July 30, 2014 Board meeting agenda in response to his fellow Board member signaling him for not implementing the Board’s decision at the April 30th meeting.

At the July 30th MCHD Board meeting, Board member Calderon motioned that the MCHD retain special legal counsel and financial consultants to review the 2000 agreement between MCHD and UHS to advise the MCHD as to what are its obligations, responsibilities, and options concerning this 25 year long agreement. Calderon has been an ardent advocate for balancing the budget at the MCHD which has suffered annually significant deficits under Board President Farias’ leadership. To the dismay of Maverick County taxpayers, none of the MCHD Board members seconded Calderon’s motion and the motion failed for lack of a second, precluding an important discussion on the motion and what are the responsibilities of Maverick County taxpayers under this agreement. Board Secretary and Treasurer Humberto Duran backed down from his April 30th support of this worthy suggestion and remained quiet as a mouse during this agenda item. Neither did former Mayor and Board member Joaquin L. Rodriguez nor Board Vice-President and Maverick County Treasurer Rito J. Valdez, III, supported Maverick County taxpayers by at least having a discussion of the agenda item by seconding the motion. MCHD Board President and Fort Duncan Regional Medical Center Advisory Board Member Farias also did not support Maverick County taxpayers by refusing to at least have a discussion on this multi-million dollar agreement and/or retaining special legal counsel and financial consultants to review the status of this agreement made in 2000, which allegedly runs until 2025. Board member Calderon believes that the MCHD Board of Directors owes Maverick County taxpayers a responsibility and duty to at least have special legal counsel and financial consultants review this multi-million dollar agreement to provide them with legal and financial advice.

In the alternative, Board President Farias, Vice-President Rito J. Valdez, III, Secretary-Treasurer Humberto Duran, and Board member Joaquin L. Rodriguez approved a motion to table this item until Board member Ricardo E. Calderon reviewed these documents and advises the Board if there are any benefits to the Hospital District. Board member Calderon opposed this motion because he believes the Board should hire special legal counsel and financial consultants to advise the MCHD. Calderon noted that he is not reviewing these documents as special legal counsel but rather as a Board member. Board President Farias’ lack of leadership is evident in trying to punt the problem to one Board member instead of the entire Board doing what is in the best interests of the Maverick County taxpayers.

On another Agenda item regarding discussion with possible action to approve request for records of documents and/or audio and video recordings of the Maverick County Hospital District as a Board of Director, in particular all written agreements between the Maverick County Hospital District and Universal Health Systems dba Fort Duncan Regional Medical Center from January 1, 2000 to the present brought a lively debate between Board member Calderon, who requested these documents, and Board President Farias and General Counsel Joshua Nieto of Brin & Brin concerning the production of these public records to a Board member.

Board member Calderon stated that he was requesting these public records because he needed to review them in order to prepare for the agenda item concerning the retention of special legal counsel and financial consultants to review the 2000 agreement between MCHD and UHS as well as his duty and responsibility to represent Maverick County taxpayers as a MCHD Board of Director. General Counsel Joshua Nieto argued that a MCHD Board of Directors vote was required before producing these public records to a Board member and requested Board member Calderon to provide him with legal authority as to why he is entitled to these public records. Board member Calderon advised General Counsel Joshua Nieto that he as general counsel should be providing the Board with his legal authority for his legal opinion, not the Board members. Calderon requested General Counsel Nieto to provide the Board with a statute, law, case, or legal authority that supports his legal opinion. General Counsel Nieto could not provide the MCHD Board with any such legal authority. Calderon noted that he was not interested in Nieto’s personal opinion, but rather his legal opinion. Calderon reminded General Counsel Joshua Nieto that he represented the entire five Board members, not just four Board members.

Board President and Fort Duncan Regional Medical Center Advisory Board Member Farias and General Counsel Nieto noted the expense involved in producing the public records requested. Board member Calderon noted that these are public records under the Texas Public Information Act and he is requesting them as a duly elected public official Board member and are necessary for him to perform his duties and responsibilities. Board President Farias stated that the Board was not refusing to provide these public records to Calderon, but that they preferred they be reviewed at the offices of the MCHD.

After further discussion, Board member Calderon motioned to have the MCHD produce these public records for review and inspection at the MCHD offices and seconded by Board member Joaquin L. Rodriguez. The MCHD Board unanimously approved the motion.