Ronald Hixson and Joaquin L. Rodriguez Sworn-in as Maverick County Hospital District Board of Directors
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
Ronald Hixson and Joaquin L. Rodriguez were officially sworn-in as Maverick County Hospital District (MCHD) Board of Directors at a special meeting held on Wednesday, November 12, 2014, at 12 Noon at the District’s Second Floor Conference Room in Eagle Pass, Texas.
The MCHD Board had two positions on its Board for election during the November 4th general election but since only two candidates applied, Hixson and Rodriguez, the election was canceled and both Hixson and Rodriguez were certified as the winners.
Incumbent MCHD Board member Joaquin L. Rodriguez, took the oath of office first before MCHD Notary Public Kathy Vidal. As Vidal administered the Statement of Elected Officer and the Oath of Office to Rodriguez, Rodriguez stumbled through the words of these two oaths unable at times to read along with a copy of these provided to him for his convenience, stunning members of the audience in attendance.
New MCHD Board member Ronald Hixson was then sworn-in by Vidal without a hitch in a smooth reading of the two oaths.
Hixson and Rodriguez took their places on the MCHD Board of Directors joining Juan Manuel Farias, Humberto Duran, and Ricardo E. Calderon.
Following the administration of the Statement of Elected Officer and Oath of Office to Rodriguez and Hixson, MCHD Board President Farias proceeded to Agenda Item V-B regarding “discussion with possible action of the Hospital District Election of Officers.”
MCHD Board member Calderon nominated Ronald Hixson as President of the Board citing Hixson’s extensive experience as a Health Care provider, having authored several books on health care issues, and the need for new leadership on the Board in light of the continuous financial bleeding and budget deficits approved by the Board. Hixson accepted the nomination and seconded the motion. During discussion, Calderon noted Hixson’s experience and expertise in health care services as a psycho-therapist in the community, recognition as an author in the health care field, and how new and fresh leadership would help the District seek new solutions to balance the annual budget deficits and financial losses of millions of dollars. Board President Farias opposed Calderon’s motion noting that the District has increased services to Maverick County taxpayers and the annual financial losses are worthwhile because the District has expanded services. Board member Rodriguez chimed in stating he opposed new Board member Hixson being President. The nomination failed as Board President Farias’ majority of Rodriguez, Duran, and himself voted against while Calderon and Hixson voted in favor.
Next, Board Secretary-Treasurer and United Medical Centers executive Humberto Duran nominated Joaquin L. Rodriguez as President and Board President Farias seconded the motion. During discussion, Calderon noted that Rodriguez had previously been nominated for Board President and declined the nomination and opportunity to serve in that capacity and had no idea why he would want to be President at this time. Calderon also noted Rodriguez has four years experience as a Board member and had approved the budget deficits and use of District reserves to balance the million dollar losses during those four years. Calderon noted election of Rodriguez as President would only continue the “status quo” of approving budget deficits and financial bleeding of the District reserves, citing the District’s auditors answer to a question that if the District continues at its current pace of using its reserves in the millions of dollars every year the reserves would become depleted in a matter of seven or eight years. Board President Farias disagreed and noted the community is growing and the use of reserves to finance expanded services is money well spent. The motion was approved on a split vote of 3-2 with Farias, Duran, and Rodriguez in favor of Rodriguez elected President while Calderon and Hixson opposed the motion. Rodriguez took over the meeting as the new MCHD Board President.
Next, Calderon nominated Ronald Hixson as Vice-President of the Board and Hixson seconded the motion. Once again, the nomination failed on a split 3-2 vote as new Board President Rodriguez’s majority of Farias, Duran, and himself voted against while Calderon and Hixson in favor.
Next, Hixson nominated Calderon as Vice-President and Calderon seconded the motion. The nomination failed as the political majority of Board President Rodriguez, Farias, and Duran voted against while Hixson and Calderon in favor.
Next, Board President Rodriguez nominated Juan Manuel Farias as Vice-President and stepped-down as Chairman of the meeting leaving Secretary-Treasurer Duran as the new Chair of the meeting. Duran then seconded the motion and stepped down, too, as Chairman of the meeting. leaving no other Chairman of the meeting to call the motion to a vote. Calderon noted since both Rodriguez and Duran had stepped down as Chairman of the meeting, there was no other Chairman to call the motion to a vote. Farias immediately requested that Chief Executive Officer Terri Contreras call the District’s General Counsel, Celeste Lira of Brin & Brin of San Antonio, Texas, who was not present at the meeting, for legal advice on how to proceed with the Chairman-less situation and the pending motion. General Counsel Lira advised the Board that another Board member could take over the meeting as Chairman or to cancel the motion and start again on a new motion. The Board cancelled the nomination of Farias as Vice-President.
Next, Board Secretary-Treasurer Duran nominated Farias as Vice-President and Board President Rodriguez jumped in to second the motion and stepped down as Chairman of the meeting to do so, creating another Chairman-less situation since Duran could not become Chairman of the meeting having made the nomination. Once again, the Board cancelled Farias’ second nomination as Vice-President.
As the saying goes, the third time is the charm as Board President Rodriguez nominated Farias as Vice-President and stepped down as Chairman of the meeting handing the meeting over to Duran and Farias seconded the motion. Farias was elected Vice-President on the third nomination in a split 3-2 vote with the majority of Rodriguez, Duran, and Farias in favor while Calderon and Hixson against.
Next, Calderon nominated Hixson as Secretary-Treasurer and Hixson seconded the motion. Once again, the majority of Rodriguez, Farias, and Duran voted against while Calderon and Hixson in favor.
Next, Farias nominated Humberto Duran as Secretary-Treasurer and Duran seconded the motion. During discussion, Calderon raised a legal question noting that Duran may have a potential conflict of interest as he is employed by United Medical Centers as an executive and the District has a contract for health care services with United Medical Centers and Duran may earn more than 10% of his annual income from his employment with United Medical Centers and previous legal opinions prohibit a person earning more than 10% of their annual income from an entity with a contract with the District from serving on the Board. Calderon requested Legal Counsel to provide a legal opinion on this issue. General Counsel Celeste Lira noted that this legal issue was not before the Board at the moment and may be brought up in the future by the Board. Duran was elected as Secretary-Treasurer on a split 3-2 vote with Farias, Rodriguez, and Duran in favor while Calderon and Hixson against.
MCHD Chief Financial Officer Nestor Bonilla presented the District’s September 2014 Financial Report, the first month of the new 2014-2015 fiscal year, stating that the District sustained a loss of $58,609 for the month with expenses of $530,739 and revenues of only $472,129.
Board member Calderon noted that the District’s total assets in September 2014 were $25,895,586, as provided by Bonilla, and asked Bonilla what was the District’s total assets a year ago in September 2013. Calderon requested Bonilla to please provide the Board and the public with these figures. Bonilla reported that the District’s total assets in September 2013 were $27,596,983. MCHD Chief Executive Officer Terri Contreras stated that the difference between 2014 and 2013 was approximately $1.7 Million. In other words, the District’s total assets are $1,701,397 less in September 2014 than in September 2013, confirming Calderon’s legitimate concerns that the District’s reserves are quickly being depleted to pay for the Board’s approval of financial losses on an annual basis and approval of deficit budgets. The 2014-2015 fiscal year budget was approved with over a $500,000 deficit with Rodriguez, Farias, Duran, and former Board Vice-President Rito J. Valdez, III, approving it while Calderon was the lone Board member to vote against it.
Bonilla noted that the $1.7 Million difference is largely due to the Board’s approval of paying Fort Duncan Regional Medical Center approximately $1.3 Million for uncompensated care during May or June 2014.
Interestingly, the MCHD Board was not required to pay Fort Duncan Regional Medical Center the full amount of $1.3 Million as a lesser amount was due but the then Board President Farias majority approved to pay the larger sum to help out Fort Duncan Regional Medical Center per their request. Calderon was not present at this meeting. Former MCHD Board President Farias at the time of the $1.3 Million advanced payment to Fort Duncan Regional Medical Center was serving as an Advisory Board member of Fort Duncan Regional Medical Center, according to their website.
