Of the current eight-member board, at least two individuals have private businesses that deal directly with Hacienda HealthCare, the report states.
The investigation found that board chairman Tom Pomeroy brokered health insurance contracts for some 800 Hacienda HealthCare employees through his private company on and off for the past 30 years. He told The Arizona Republic he received “normal broker compensation” and “no excess benefits.”
“Hacienda receives excellent and above-standard service in their account negotiations … and this has resulted in substantially lower-than-marketplace premiums,” he said, adding, “There is, therefore, no actual conflict of interest. On any matters which might in any way be related to my business involvement, I make a presentation to management and the board of directors and abstain from any votes involving my presentations.”
However, The Arizona Republic found that Mr. Pomeroy’s business was accused of engaging in fraudulent practices at least twice by federal regulators.
The investigation also discovered that at least three board members’ children were given jobs at Hacienda. The three individuals told the publication that they were not involved in their relatives’ hiring decisions, and that their children were qualified for their respective positions and advanced up the management ladder after receiving high marks from supervisors.
Discoveries made during the investigation support other claims of improper behaviors by Hacienda leadership, including years of harassment claims filed against the institution’s former CEO Bill Timmons, who resigned from his role in January.
Issues at Hacienda came to light after a patient in a vegetative state gave birth to a baby boy in December 2018. In January, police arrested one of the nurses tasked to care for the patient and charged him with allegedly raping and impregnating her.
To access the full report, click here.
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