Meetings
 
Agenda Item
Docket No. 19-496
 
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RE:
Request for Reconsideration concerning an Advisory Opinion regarding the West Feliciana Hospital Board contracting with Dr. Nnamdi Nwabueze, husband of Board member Stacie Nwabueze.
Facts:
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.

Law:
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. 42:1111C(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.

La. R.S. 42:1123(18):


(a) A licensed physician who is a member of a board of commissioners for any hospital service district authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950 located within a parish which has a population of one hundred twenty-five thousand or less from contracting with the hospital over which the board exercises jurisdiction, from subcontracting with another provider who contracts with such hospital, or from owning an interest in an entity that contracts with such hospital. However, such licensed physician shall recuse himself from participating in any transaction before the board relating to any contracts entered into by him, or by a provider with which he subcontracts, or by any entity in which he owns an interest, and permitted by this Paragraph.

(b) A licensed physician who is a member of a board of commissioners for any hospital service district authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950 located within a parish which has a population of twenty-nine thousand or less from being employed with the hospital over which the board exercises jurisdiction or from owning an interest in an entity that contracts with such hospital. However, such licensed physician shall recuse himself from participating in any transaction before the board relating to his employment with the hospital or to any contracts entered into by him, or by a provider with which he subcontracts, or by any entity in which he owns an interest, and permitted by this Paragraph.

(c) Any physician serving as a member of a hospital service district board or commission, if such hospital service district board or commission is required by law or by local ordinance, rule, or regulation adopted by a municipal or parish governing authority to have one or more physician members on its board or commission, from leasing space for the provision of health care services from a hospital under the jurisdiction of the board or commission for fair market value. However, such licensed physician shall recuse himself from participating in any transaction involving a lease agreement to which he is permitted by this Subparagraph to be a party.

(d) Any licensed physician who is the child of a member of a board of commissioners of any hospital service district authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950, located within a parish that has a population of fifty thousand or less or for a hospital that is defined as a rural hospital pursuant to the Rural Hospital Preservation Act (R.S. 40:1189.1 et seq.) from contracting for professional health care services with the hospital over which the board exercises jurisdiction, from subcontracting with another professional health care provider who contracts for professional health care services with the hospital, or from owning an interest in any entity that contracts for professional health care services with the hospital.

Recommendations:
Affirm previous advisory opinion.
Assigned Attorney: David Bordelon
 
 
ATTACHMENTS:
Description:
2019-496- Request for Reconsideration
2019-496: Advisory Opinion
2019-496 Request for opinion