| Advisory Opinion request from Lee Chastant, CEO, concerning the West Feliciana Hospital Board contracting with Dr. Nnamdi Nwabueze, husband of Board member Stacie Nwabueze. |
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Stacie Nwabueze was appointed as a member of the Hospital Board of Commissioners in April 2018. Her husband, Dr. Nnamdi Nwabueze, is a solo private practitioner who operates a medical clinic in Jackson and another clinic in St. Francisville. Stacie Nwabueze is currently the office manager for her husband's clinics.
Dr. Nwabueze's clinic space in St. Francisville is owned by the Hospital. Prior to Stacie Nwabueze's appointment to the Hospital Board, Dr. Nwabueze entered into a lease agreement to rent the clinic space in St. Francisville from the Hospital. The Hospital asks whether it can renew the lease to Dr. Nwabueze for the St. Francisville clinic while Stacie Nwabueze serves on the Hospital Board.
Additionally, the Hospital is interested in expanding its service area in Jackson. The Hospital asks whether certain options are available to utilize Dr. Nwabueze's skills in the area. Those options include: (1) leasing Dr. Nwabueze's building and contracting with him to provide care; (2) purchasing the Jackson clinic from Dr. Nwabueze; and (3) hiring Dr. Nwabueze as a physician employee to be assigned to work in the Hospital-owned clinic.
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La. R.S. 42:1113B provides that no appointed member of any board or commission, member of her immediate family, or legal entity in which she 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.
La. R.S. 42:1119B(1) provides that no member of the immediate family of a member of a governing authority shall be employed by the governmental entity.
La. R.S. 42:1102(11) defines "governing authority" to mean the body which exercises the legislative functions of a political subdivision.
La. R.S. 42:1119B(2)(b) provides the following exception to the nepotism prohibition for certain physicians:
(b)(i) Any hospital service district … may enter into an initial recruiting contract with or employ as a health care provider, a licensed physician, a registered nurse, or an allied health professional who is a member of the immediate family of any district board, authority, or parish governing authority member … provided that such family member is the only qualified applicant who has applied for the position after it has been advertised for at least thirty days in the official journal of the parish and in all newspapers of general circulation in the parish where the hospital is located. The chief executive and any member of a board of a hospital service district … which enters into an initial recruiting contract with or employs such physician, registered nurse, or allied health professional shall recuse himself from any decision involving the promotion, discipline, discharge, or assignment of any such employee who is a member of his immediate family. …
(iii) In addition, no later than January thirtieth of each year, any chief executive and any member of a board of a hospital service district … whose immediate family member enters into an initial recruiting contract with or is employed by the hospital service district … 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. 42:1112B(1) provides that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any member of his immediate family has a substantial economic interest.
La. R.S. 42:1120.4 provides that if any appointed member of a board or commission in the discharge of a duty or responsibility of his office or position would be required to vote on a matter which vote would be a violation of Section 1112, he shall recuse himself from voting. Additionally, he shall be prohibited from participating in discussion and debate concerning the matter.
La. R.S. 42:1111C(2)(d) prohibits a public servant from receiving compensation for services rendered to a person who has, or is seeking to obtain, a contractual, business, or financial relationship with the public servant's agency.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
David Bordelon |
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