By Bruce Barton
Addressing accusations that they have something to hide, El Camino Hospital officials sought to educate the public last week about the hospital’s complex structure and governance that has a public district board presiding over the equivalent of a private business.
The hospital board and administration, led by CEO Lee Domanico, told an unusually large audience at the hospital district’s July 6 board meeting that the hospital operates in an “enterprise district.”
Board members explained that the hospital is competing with other hospitals. Therefore, much of their business is discussed in closed session, because public discussion could leave them vulnerable to competitors and endanger the hospital’s operations.
Domanico said following disclosure requirements similar to cities would put the hospital at a “competitive disadvantage - not in the best interests of the residents of the El Camino Hospital District.”
Responding to a May 23 request from the Mountain View- Los Altos League of Women Voters for more “transparency,” hospital officials offered a presentation on El Camino’s history and how operations are structured.
Although El Camino was built on a voter-approved $7.3 million bond measure in 1957, Domanico said all but approximately 2 percent of annual revenues are from hospital services, and 100 percent of operations are funded by nontax revenues.
The district only uses tax money on investments, such as buildings, equipment and technology.
Funds collected publicly or privately are treated differently, hospital officials said.
A public district board, whose members are elected by residents, governs a public benefit corporation that runs hospital operations. The El Camino Hospital District board elects themselves and Domanico to the hospital board to ensure hospital accountability.
The district board-hospital board structure has left doctors and some members of the public confused and suspicious that the hospital is concealing information.
Hospital attorney Mitchell Olejko indicated requests for hospital information under the state’s public records act would require a “balancing test” that would weigh such factors as constitutional rights of privacy concerning personnel records, for example, versus a public need to know.
Board members said the hospital is compliant with the Brown Act, the state’s open meeting law, and provides updated financial information on a monthly basis.
“We plan on continuing that in terms of full disclosure,” said Dr. Edward Bough, who became chairman of the hospital district board at the July 6 meeting.
Although board members said the hospital is legally exempt from filing IRS Form 990, which discloses the salaries of the top five hospital executives, they will begin doing so with the 2004-2005 fiscal year as a good-faith gesture.
Ginny Lear, president of the women voters, thanked the board for the information.
