In the wake of the controversy, Democratic House Speaker Michael Busch proposed reform legislation March 21 to place more oversight on the quasi-public system. In addition to receiving millions in taxpayer funds that private hospitals don’t, UMMS’ board of directors is appointed by Maryland’s governor, and some state lawmakers sit on the board.
Mr. Busch asked Maryland Attorney General Brian Frosh to give his opinion on whether some parts of the proposed reform could be expanded to include the state’s private hospitals, according to the report.
The Baltimore Sun reviewed state disclosures and federal tax forms from Maryland private hospitals like MedStar Health in Columbia, Baltimore-based LifeBridge Health and Mercy Medical Center, also in Baltimore. The publication found most of the hospitals had business dealings with board members.
Business deals between board members and hospitals aren’t uncommon. They’re also allowable if properly disclosed and if members avoid discussions and votes related to their business interests.
Baltimore Mayor Catherine Pugh failed to disclose a previous deal with UMMS and resigned from the organization’s board of directors March 18, sparking the scandal. The president and CEO of UMMS agreed to take a leave of absence, effective March 25, amid the controversy.
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