California Investigates Public Hospital Board Members for Conflicts of Interest

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The California Fair Political Practices Commission is investigating board members for two publicly funded healthcare districts to determine whether they have violated the state's conflict-of-interest laws, according to a Bay Citizen report.

The investigations follow news reports from the Bay Citizen and California Watch, which identified questionable transactions between companies and non-profit organizations with ties to district officials.

Two board members of the Sequoia Healthcare District in Redwood City are under investigation. Gerald Shefren reportedly voted to approve a district grant for a non-profit organization that employed his wife. Arthur Faro reportedly held stocks in two banks that had ties to the healthcare district.

The commission may also open a case against the president of Washington Township Health Care District's board, Michael Wallace. Mr. Wallace is chairman of the board of Fremont Bank, which received more than $1.2 million in fees in the past 10 years from the Washington healthcare district, according to the report. Mr. Wallace has service on the healthcare district's board since 1990.

More Articles on Hospital Investigations:

5 Cornerstones of a Culture of Compliance for Hospitals
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Feds Probe Vanderbilt's Medicare Records


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