| Advisory opinion request submitted on behalf of the Board of Commissioners of the East Union Parish Hospital Service District regarding disclosure requirements pursuant to the Code of Governmental Ethics and whether a pharmacy owned by a board member can participate in the 340B Drug Discount Program. |
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ANNUAL PERSONAL FINANCIAL DISCLOSURE STATEMENTS
The East Union Parish Hospital Service District (District) has the authority to expend over $10,000 per year. The District was created by the Union Parish Police Jury (Police Jury) by Ordinance No. 242, pursuant to authorization granted in La. R.S. 46:1051, on June 8, 1971. The District's board members are appointed by the Police Jury. According to the latest federal decennial census, Union Parish has a population of 22,721.
HOSPITAL SERVICE DISTRICT DISCLOSURE STATEMENTS
Initially, the District operated the hospital located in Farmerville (Hospital). However, since 1983, Union General Hospital (UGH), a separate non-profit corporation, has operated the Hospital pursuant to agreements with the District. According to the cooperative endeavor agreement (CEA) currently in place, "the selection, hiring and termination of all employees shall be within the sole discretion of UGH".
Mary Lynette Wade is the sister of Howard Curtis Allen, a board member of the District, and is employed with the Hospital as a "Family Nurse Practitioner". Ms. Wade meets every exception on the hospital service district disclosure form, including having been employed with the Hospital prior to the effective date of the Code of Governmental Ethics.
340B DRUG DISCOUNT PROGRAM
UGH intends to increase the availability of low cost prescription medications to the community by expanding the 340B Drug Discount Program (Program), a federal program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities at significantly reduced prices. In connection with implementing the Program, UGH will enter into acknowledgment contracts, pursuant to which participating pharmacies will be paid a "dispensing fee" by the patient and UGH will replenish the drug, with pharmacies throughout the parish. However, Bruce Matte, a board member of the District, owns the sole pharmacy in the Town of Marion.
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La. R.S. 46:1052 provides that the objects and purposes of the hospital service districts and the governing bodies created under the provisions of this chapter shall be: (1) To own and operate hospitals for the care of persons suffering from illnesses or disabilities which require that patients receive hospital care. (2) To administer other activities related to rendering care to the sick and injured or in the promotion of health which may be justified by the facilities, personnel, funds and other requirements available. (3) To promote and conduct scientific research and training related to the care of the sick and injured insofar as such research and training can be conducted in connection with the hospital. (4) To participate so far as circumstances may warrant in any activity designed and conducted to promote the general health of the community. (5) To cooperate with other public and private institutions and agencies engaged in providing hospital and other health services to residents of the district.
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La. R.S. 42:1124.2.1 requires financial disclosure statements to be filed by each member and designee of a board or commission which has the authority to expend, disburse or invest $10,000 or more of funds in a fiscal year on or before May 15th of each year during which the person holds office and the year following termination of the holding of such office. However, "board or commission" shall not mean any board or commission or like entity that governs a political subdivision created by a single parish governing authority of a parish with a population of 200,000 or less, or any subdistrict of such a political subdivision.
La. R.S. 42:1119B(2)(b)(iii) provides that no later than January thirtieth of each year, any chief executive and any member of a board of a hospital service district or hospital public trust authority whose immediate family member enters into an initial recruiting contract with or is employed by the hospital service district or hospital public trust authority pursuant to this Subparagraph shall file a disclosure statement with the Board of Ethics stating the facts of such employment. Any person who fails to timely file a disclosure statement under this Item may be assessed a late fee of fifty dollars per day, not to exceed one thousand five hundred dollars, subject to the provisions of R.S. 42:1157.
La. R.S. 42:1113B provides that other than a legislator, no appointed member of any board or commission, member of his immediate family, or legal entity in which he has a substantial economic interest shall bid on or enter into or be in any way interested in any contract, subcontract, or other transaction which is under the supervision or jurisdiction of the agency of such appointed member.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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