The Borough Assembly failed to pass an ordinance Tuesday that would have changed the eligibility requirements for members of the Wrangell Medical Center (WMC) Board of Directors.
The ordinance would have allowed hospital employees, tenants of the hospital’s long-term care facility, and any contractor of the hospital to run for the WMC Board.
Currently, the ordinance prohibits those people from serving on the board.
The Assembly voted 3-3 at its meeting Tuesday night to pass the ordinance on its second reading. Because of the tie, the ordinance failed.
Assembly members Don McConachie, Michael Symons and Wilma Stokes voted against the ordinance, while David Jack, Bill Privett and Wrangell Mayor Jeremy Maxand voted for it.
The failure of the ordinance drew applause from the audience at the Assembly meeting, which was comprised of just over 20 people, many of whom were WMC staff, administration and board members.
Several WMC staff members spoke in opposition Tuesday to the city allowing WMC employees, tenants and contractors to serve on the hospital board.
WMC Director of Nursing Sue Nelson said allowing contractors of WMC to become a member of the hospital board could be a direct conflict of interest.
Contractors are more likely to benefit financially from operational policies at the hospital that they could influence at the board level, Nelson said.
“It absolutely does not make sense to change this ordinance, which would unnecessarily leave WMC exposed,” she said.
WMC Chief Financial Officer Olinda White said allowing physicians to serve on the hospital board would also create a conflict of interest and could influence the revenue stream of the hospital.
Local physician Greg Salard, who recently had his privileges to work at the hospital denied by the WMC Board, said allowing doctors to serve on a hospital board is a good thing. Salard said physicians are able to bring medical expertise to the board.
If there is a conflict of interest, physicians would know when it is necessary to recuse themselves from a board meeting, he said.
WMC Administrator Noel Selle-Rea disagreed. He said having physicians serve on the hospital board would not be appropriate in Wrangell because of the small number of doctors working in town.
After listening to the public comments on the proposed ordinance, Assembly member Privett said he did not believe the ordinance would be detrimental to the hospital.
“I don’t think this ordinance is going to destroy the Wrangell Medical Center Board, if that is the greatest concern,” Privett said.
Mayor Maxand believed the ordinance change would be beneficial, as it would allow different medical providers in the community, such as Alaska Island Community Services, to serve on the WMC Board.
If a conflict should arise in a meeting, Maxand said he and the citizens of Wrangell should have faith in that official they elected to the board to recuse themselves.
“That, I think is the solution, I don’t think that barring people is the solution,” he said.
Assembly member Michael Symons said he believes physicians should participate in WMC Board meetings, but should not be allowed to serve as a member on the board.
Assembly member McConachie also took issue with a possible conflict of interest that could arise from a physician serving on the hospital board.
Before the Assembly discussed the ordinance, McConachie also asked Maxand to recuse himself from the meeting. McConachie said he believed Maxand had a conflict of interest on the issue because of alleged comments the mayor made on Facebook regarding WMC, as well as posting public documents online regarding the hospital.
The Assembly voted 3-2 against having Maxand exit the meeting. Along with McConachie, Assembly member Stokes voted in favor of having Maxand leave during the ordinance discussion.
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