Posted 12:22 am Tuesday, February 21, 2012
Total Healthcare Center Funding Suspended
By DAYNA WORCHEL and JACQUE HILBURN-SIMMONS
Staff Writers
City of Tyler officials are suspending funding for Total Healthcare Center, citing concerns about an ongoing state investigation, reported instances of non-compliance and recurring turnovers in leadership.
Staff Writers
City of Tyler officials are suspending funding for Total Healthcare Center, citing concerns about an ongoing state investigation, reported instances of non-compliance and recurring turnovers in leadership.
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Word of the change emerged Monday after city officials notified the organization in writing it was pulling financial support, starting immediately.
Tyler gives the organization $265,000 a year to help provide indigent health care, paying in increments of roughly $22,000 on a month-to-month basis, records show.
Tyler gives the organization $265,000 a year to help provide indigent health care, paying in increments of roughly $22,000 on a month-to-month basis, records show.
The amount represents roughly a quarter of the agency's $920,673 in federal grant funding received annually, according to records provided by the Texas Attorney General's office.
“Any regular payment for services is being suspended until the issues are resolved,” City Attorney Gary Landers said. “Services are needed in our community, no doubt about it, but we are stewards of public dollars. Concerns and issues we've had are still there … there's just a lot of instability.”
City officials said the organization has been on a type of “probationary” status since reports surfaced more than a year ago, indicating internal problems within the agency.
“Any regular payment for services is being suspended until the issues are resolved,” City Attorney Gary Landers said. “Services are needed in our community, no doubt about it, but we are stewards of public dollars. Concerns and issues we've had are still there … there's just a lot of instability.”
City officials said the organization has been on a type of “probationary” status since reports surfaced more than a year ago, indicating internal problems within the agency.
In the city's suspension letter, Landers wrote that funding, derived from the general fund, was halted due to “chronic inability to retain operational leadership over an extended period …” as well as federal noncompliance issues.
The organization is one of a handful of outside agencies the city supports, including the Northeast Texas Public Health District, which provides services ranging from animal control to immunization, and Tyler Convention and Visitors Bureau.
The health district receives about $300,000 annually.
The organization is one of a handful of outside agencies the city supports, including the Northeast Texas Public Health District, which provides services ranging from animal control to immunization, and Tyler Convention and Visitors Bureau.
The health district receives about $300,000 annually.
There was no word on how Total Healthcare plans to respond to the funding suspension or whether it will impact the level of services provided.
“I was just informed on what happened,” said Attorney Robert Davis, who represents the Total Healthcare board. “Funding is just suspended; it's not terminated.”
Davis said the city indicated a willingness to resume funding, if the problems were resolved.
He said the board was under the assumption that all concerns had been addressed, based on comments made by the former director, who resigned earlier this month.
“The board has been surprised there are still concerns,” he said. “Hopefully, it's a miscommunication.”
Board president Pamela Phoenix did not respond to messages left seeking comment about the issue.
But Tyler City Manager Mark McDaniel said he spoke with Ms. Phoenix about the development and talks were productive.
“The conversation was very professional with Total Healthcare Center indicating a desire to resolve these concerns and the city expressing our hope that they do so,” McDaniel said.
The city's decision to pull clinic funding is the latest in a series of events relating to the actions of Total Healthcare's administration and some of its board members, records show.
Total Healthcare, which provides medical and dental care for underinsured and uninsured patients from 13 counties, has been involved in a legal battle with the Texas Attorney General's Office since September, records show.
The dispute stems from an August board meeting attended by Texas Attorney General's officials. Total Healthcare officials said attorney general officials made accusations at the Aug. 23 meeting without providing explanations or any supporting documentation, prompting the organization to file a lawsuit against the state agency.
In its Sept. 2 petition, Total Healthcare claimed state officials were overreaching when recommendations were made to implement changes in leadership.
The Texas Attorney General's office responded to the organization's lawsuit on Sept. 7, filing its own lawsuit in Travis County.
The state's lawsuit alleges Total Healthcare and its board of directors committed “violations of the business organization code, common-law breach of fiduciary duty and grossly negligent mismanagement,” records show.
The attorney general's lawsuit cited findings in a report by the U.S. Department of Health and Human Services Health Resources and Services Administration, which alleged mismanagement of clinic funds and possible theft of clinic property.
The state's lawsuit alleges Bennie Webster, former chair of the Total Healthcare Board who has served on the panel since 2006, practiced medicine without a license, used center staff to perform work on her home, took property from the center for personal use and participated in the “arbitrary firings” of eight chief executive officers and interim officers since 2007, records show.
Ms. Webster and other board members, in September talks with the Tyler Morning Telegraph, maintained all allegations were false. When contacted Monday, Ms. Webster said by phone that clinic staff and supporters will continue working to serve the community, providing an abundance of health care services that are free or low cost to qualified patients.
“The doors are not going to close,” she said. “Of course, any time you lose funding, there is an impact,” she said. “Hopefully we can work with the city and get that money restored. You go through bad times, but you keep your mission in focus.”
The center also receives state funding from a variety of sources, but she could not specify an exact amount of those allocations.
Ms. Webster said every effort would be made to address and resolve lingering concerns about the organization.
In October, Ms. Phoenix was selected to replace Ms. Webster, who had served as chairman of the board of the clinic since its inception in 2006.
Davis, on behalf of the Total Healthcare board, filed an amended petition to the state's allegations in October in Smith County 241st District Court.
In his October filing, Davis stated former executive director, David E. Young, breached his fiduciary duty to Total Healthcare by sabotaging negotiations between Total Healthcare and Trinity Mother Frances.
Young, through his own attorney, has denied those allegations.
Stephanie Jones Theaker, who served as the fourth CEO of the organization in the past four years, said earlier the election of Ms. Phoenix was the result of the board's annual elections and was not related to the ongoing legal issues.
Ms. Theaker resigned her position two weeks ago, after holding the job for less than one year.
When contacted by phone on Monday, Ms. Theaker offered no specific comments about the organization.
“I wish them well,” she said. “I thought I would stay here the rest of my life. It was a big move for me; my daughter is in school here.”
She added, “I found out a lot of things about Total Healthcare that I didn't know when I came here. I can't say what the things were that I found out because I signed a nondisclosure agreement. I hope they are able to continue providing the same services they were providing.”
Officials offered no explanation on her departure.
Lindsey Birdsong, Total Healthcare attorney, in an e-mailed statement two weeks ago, described Ms. Theaker's departure as disappointing.
Birdsong did not respond to two messages left Monday seeking comment about the funding issue. Ms. Theaker replaced former Total Healthcare CEO David Young in June after the board of directors unanimously voted to terminate him in 2010 after eight months of service.
Tom Kelley of the attorney general's office said Feb. 8 that he could not comment on any pending litigation, but said that the attorney general is contesting any jurisdiction for the suit in Smith County.
“We are hoping to proceed in Travis County,” he said in a written statement.
“I was just informed on what happened,” said Attorney Robert Davis, who represents the Total Healthcare board. “Funding is just suspended; it's not terminated.”
Davis said the city indicated a willingness to resume funding, if the problems were resolved.
He said the board was under the assumption that all concerns had been addressed, based on comments made by the former director, who resigned earlier this month.
“The board has been surprised there are still concerns,” he said. “Hopefully, it's a miscommunication.”
Board president Pamela Phoenix did not respond to messages left seeking comment about the issue.
But Tyler City Manager Mark McDaniel said he spoke with Ms. Phoenix about the development and talks were productive.
“The conversation was very professional with Total Healthcare Center indicating a desire to resolve these concerns and the city expressing our hope that they do so,” McDaniel said.
The city's decision to pull clinic funding is the latest in a series of events relating to the actions of Total Healthcare's administration and some of its board members, records show.
Total Healthcare, which provides medical and dental care for underinsured and uninsured patients from 13 counties, has been involved in a legal battle with the Texas Attorney General's Office since September, records show.
The dispute stems from an August board meeting attended by Texas Attorney General's officials. Total Healthcare officials said attorney general officials made accusations at the Aug. 23 meeting without providing explanations or any supporting documentation, prompting the organization to file a lawsuit against the state agency.
In its Sept. 2 petition, Total Healthcare claimed state officials were overreaching when recommendations were made to implement changes in leadership.
The Texas Attorney General's office responded to the organization's lawsuit on Sept. 7, filing its own lawsuit in Travis County.
The state's lawsuit alleges Total Healthcare and its board of directors committed “violations of the business organization code, common-law breach of fiduciary duty and grossly negligent mismanagement,” records show.
The attorney general's lawsuit cited findings in a report by the U.S. Department of Health and Human Services Health Resources and Services Administration, which alleged mismanagement of clinic funds and possible theft of clinic property.
The state's lawsuit alleges Bennie Webster, former chair of the Total Healthcare Board who has served on the panel since 2006, practiced medicine without a license, used center staff to perform work on her home, took property from the center for personal use and participated in the “arbitrary firings” of eight chief executive officers and interim officers since 2007, records show.
Ms. Webster and other board members, in September talks with the Tyler Morning Telegraph, maintained all allegations were false. When contacted Monday, Ms. Webster said by phone that clinic staff and supporters will continue working to serve the community, providing an abundance of health care services that are free or low cost to qualified patients.
“The doors are not going to close,” she said. “Of course, any time you lose funding, there is an impact,” she said. “Hopefully we can work with the city and get that money restored. You go through bad times, but you keep your mission in focus.”
The center also receives state funding from a variety of sources, but she could not specify an exact amount of those allocations.
Ms. Webster said every effort would be made to address and resolve lingering concerns about the organization.
In October, Ms. Phoenix was selected to replace Ms. Webster, who had served as chairman of the board of the clinic since its inception in 2006.
Davis, on behalf of the Total Healthcare board, filed an amended petition to the state's allegations in October in Smith County 241st District Court.
In his October filing, Davis stated former executive director, David E. Young, breached his fiduciary duty to Total Healthcare by sabotaging negotiations between Total Healthcare and Trinity Mother Frances.
Young, through his own attorney, has denied those allegations.
Stephanie Jones Theaker, who served as the fourth CEO of the organization in the past four years, said earlier the election of Ms. Phoenix was the result of the board's annual elections and was not related to the ongoing legal issues.
Ms. Theaker resigned her position two weeks ago, after holding the job for less than one year.
When contacted by phone on Monday, Ms. Theaker offered no specific comments about the organization.
“I wish them well,” she said. “I thought I would stay here the rest of my life. It was a big move for me; my daughter is in school here.”
She added, “I found out a lot of things about Total Healthcare that I didn't know when I came here. I can't say what the things were that I found out because I signed a nondisclosure agreement. I hope they are able to continue providing the same services they were providing.”
Officials offered no explanation on her departure.
Lindsey Birdsong, Total Healthcare attorney, in an e-mailed statement two weeks ago, described Ms. Theaker's departure as disappointing.
Birdsong did not respond to two messages left Monday seeking comment about the funding issue. Ms. Theaker replaced former Total Healthcare CEO David Young in June after the board of directors unanimously voted to terminate him in 2010 after eight months of service.
Tom Kelley of the attorney general's office said Feb. 8 that he could not comment on any pending litigation, but said that the attorney general is contesting any jurisdiction for the suit in Smith County.
“We are hoping to proceed in Travis County,” he said in a written statement.
