Governance Problems in the Tri-city Healthcare District

The facts raise the possibility of Brown Act violations regarding the December 18 meeting of the Tri-City Board of Directors. Fact: The actions taken with regard to the Tri-City administrators at the December 18 meeting led to the filing of lawsuits by eight of those administrators against Tri-City which may result in significant costs to Tri-City. Fact: Following the December 18 meeting there has been a significant amount of negative press coverage of Tri-City. Fact: It has been alleged by some of those interviewed and in newspaper accounts that other negative consequences for Tri-City have resulted from the December 18 meeting, such as lowered public confidence in Tri-City and lowered staff morale at Tri-City. Fact: There is a dispute among those interviewed as to whether replacing the administrators was justified or not.

The actions taken at the December 18 meeting led to negative consequences for Tri-City. Fact: Tri-City is facing increasing competition from other health care organizations in its district area. Fact: Rules and regulations that apply to health care organizations have become increasingly complex over time. Fact: The area served by Tri-City has changed from largely rural to largely urban. Fact: Tri-City has recently lost patients and physicians. Fact: Tri-City has recently had problems with its debt load.

The challenges faced by modern health care organizations are much different than they were when Tri-City Hospital opened in 1961.

All of the circumstances surrounding the actions taken at the December 18 meeting lead to the conclusion that the current model of governance by elected Board members may not be a productive model for use in meeting the kinds of complex problems faced by modern health care organizations.