Byline: Chris Olson
Jan. 9--A Douglas County Board member has resigned from her job at Alegent Health rather than give up her ability to vote on health care issues. Alegent gave Mary Ann Borgeson a choice last month: agree not to talk about or vote on health issues or lose her job of 26 years.
Alegent sent Borgeson a memo Dec. 8 saying her role on the County Board and on a regional health board violated the company's conflict-of-interest policy. That policy prohibits an employee who serves on a public board from discussing, negotiating or voting on any contract involving Alegent.
The matter arose because Alegent is seeking a contract to manage a new mental health recovery center expected to open late this year at the former Richard Young Hospital near 26th and Harney Streets.
Alegent's contract will go before the Region 6 Behavioral Health Board later this year. Borgeson serves as Douglas County's representative on that health board, which covers five counties in the Omaha metro area. Nothing in Nebraska law would have prevented Borgeson from voting on the contract while she worked at Alegent, even though many other states restrict public officials from voting on contracts involving their employers. Borgeson said she saw no conflict of interest. 'I had nothing to gain financially,' she said. She said she resigned from her job Dec. 13 because refused to give up her voice on Nebraska health care issues. 'I couldn't compromise my position as an elected official by agreeing not to discuss a subject that is my passion,' said Borgeson, who is expected to be named chairwoman of the County Board today. Lora Ullerich, a spokeswoman for Alegent, declined to comment on the circumstances surrounding Borgeson's resignation. She did say the company's conflict-of-interest policy took effect in January 2006. Employment alone does not create a conflict of interest in Nebraska. Rather, a conflict exists if the public official acts on matters affecting a company in which the public official or an immediate family member has a substantial stake. That could be as an owner or officer, a member of the board or stockholder. Frank Daley, executive director of the Nebraska Accountability and Disclosure Commission, said Nebraska changed its law in 1984 so that merely being an employee did not constitute a conflict. He said the law was changed because in small communities, people who run for public office often work for companies that could do business with local government. Borgeson said she learned of Alegent's concerns in a memo from Marian Standeven, operations leader at the company. Standeven wrote that Borgeson's views on the planned recovery center conflicted with her employer's desire to manage the center: 'As commissioner, your position has been one of concern and disagreement with Alegent Health's intent,' Standeven wrote. 'Your position in this matter has the potential for adverse effects on the interests of Alegent Health.' As Region 6 chairwoman, Borgeson in April 2005 questioned the concept of a hospital-based recovery center for mental health and substance abuse treatment.
She said area providers have worried that funds intended for community-based services would be used for the center. Borgeson said that despite those questions, she supports the concept of the recovery center.
'I've never had an issue with Alegent's management of the recovery center,' she said. Borgeson said her job at Alegent paid $50,000 a year. She makes $28,687 annually as a County Board member. She worked as a 'community service system representative' at the health care company, organizing health fairs, serving on local health care committees and preparing an annual report on the company's community involvement. Alegent has one other contract with Region 6 to provide various mental, behavioral and substance abuse services. Beverly Kracher, associate professor of business ethics and society at Creighton University, said she thinks companies and public officials should be just as concerned about the potential for a conflict of interest as the reality of one. The perception can be as damaging as an actual conflict of interest, she said. Iowa's conflict of interest law is more restrictive than Nebraska's. Elected officials in Iowa are required to abstain from voting on any matter involving an employer, said Charlie Smithson, executive director of the Iowa Ethics and Campaign Disclosure Board. 'Iowa's law is broad enough to include any employee, even though sometimes it can be difficult in a small town to find people to run for elected offices,' Smithson said. Ohio, Pennsylvania, Massachusetts, Florida and other states have laws similar to Iowa's, said David Freel, executive director of the Ohio Ethics Commission and past president of the Council on Governmental Ethics Laws. Alegent's memo to Borgeson listed no concerns about her job performance. In fact, it said she has demonstrated motivation and good judgment.
Borgeson said she considered her options for five days before submitting her letter of resignation Dec. 13. 'There wasn't much I could do to fight it,' she said. 'It was very clear that Alegent's terms weren't negotiable.' The following day, Alegent asked Borgeson to reconsider. The terms, however, were the same. Alegent's letter said: 'You have been an exemplary employee of Alegent Health and a good friend to all of us over the years. Your decision will result in a great loss to our organization.'
Copyright (c) 2007, Omaha World-Herald, Neb.
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