CHCC: Through agreement, we provide oversight of KCHC

The Commonwealth Healthcare Corp., in a statement last week, said that they provide administrative oversight, among other things, for the Kagman Community Health Center.

CHCC explained that in a co-applicant agreement with KCHC, CHCC provides coordination, administrative oversight, technical support, and “other services.”

“This lessens the need for these expenses to be paid for separately by the small community health center,” the statement said.

KCHC, who was assisted by CHCC to be able to secure a Federally Qualified Health Clinic status through the co-applicant agreement between the two, recently announced independence from the corporation. According to CHCC, KCHC, who had the authority to apply for the FQHC funding independently, reused the co-applicant agreement despite its independency.

“…The new application misrepresented the KCHC relationship with CHCC. There were no discussions with the CHCC on how the KCHC would interact with the CHCC after the split, and only the original arrangement was listed in the application, which does not represent the new arrangements that will need to be made,” CHCC said in a statement, adding that they are already discussing the matters with the Department of Health and Human Services Region IX on the matter. Prior to the co-applicant agreement, KCHC could not apply for the FQHC.

Health Resources and Services Administration, or HRSA, awarded KCHC with a three-year grant extension, giving the health center over $3 million for operation funds over the period of the grant extension.

“Operating as an independent, non-profit and non-governmental organization, it will be incumbent upon and wholly the responsibility of the Kagman Board of Directors to ensure that [KCHC] performs well and manages its financial resources with transparency and fiduciary responsibility to the community as there will be no further oversight by external entities such as CHCC or the Office of the Public Auditor to ensure conflicts of interest are avoided,” CHCC added.

CHCC later added that they were in support of KCHC’s decision to go independent.

Gov. Ralph DLG Torres said in an interview that he met with the KCHC board. He added that he supports KCHC’s decision to go independent.

“…We want them to succeed… That is the reason why we are supporting them, to be successful,” Torres said, adding that KCHC first securing the FQHC was a “great step to being independent.”

“[KCHC] is doing a phenomenal job,” said Torres.

When asked if the central government would appropriate funds to the new health clinic, Torres said KCHC has yet to ask.

CHCC: Transitional plan should have been made

CHCC, in their statement on the termination of KCHC executive director Vincent Castro, cited the co-applicant agreement as their authority to terminate the KCHC executive director.

“…All employees of KCHC, including the executive director, are employees of CHCC and subjected to CHCC’s personnel policies and procedures, including termination of one’s contract with CHCC,” said CHCC in a statement, adding that the “KCHC [board] has the authority to remove an executive director from KCHC but…not terminate one’s contract with CHCC.”

“CHCC employee termination lies with the corporation itself. The Board of Directors of the CHCC has been involved in the discussions on the actions to terminate the employment of Vince Castro as ell as the acting governor,” said the statement.

As for the KCHC executive director, CHCC said that as an employee of CHCC, the KCHC executive director has the responsibility of communicating actions and decisions regarding the health center to the CHCC chief executive officer, who then reports to the CHCC board.

“Although CHCC supports KCHC’s desire to be independent, CHCC should have been a part of the decision making and a transitional plan should have been established far in advance to reconcile assets shared by CHCC to KCHC and make clear arrangements for the relationship with CHCC, including services provided by the hospital moving forward,” said the statement from CHCC.