Borrego Clinic Crisis: (Part Two)

The Borrego Health saga continues. Another of their key personnel, LVN Charles Collum has resigned over the termination of Jan Jones and Dr. Pamela McEvoy. He was with the clinic for nearly five years, and a very respected employee.

The Clinic is falling apart. Meanwhile the executives are still reaping in their high salaries and perks.

It all started with Bruce Hebets (deceased).

The Sun has learned that the executives wanted to give Hebets a severance payment of $5 million on his resignation as CEO, and for his services to the Foundation. There were too many complications in paying that large of a sum, so they eventually agreed on a $1.8 million payment. This was in addition to Hebert’s and his wife’s combined $1 million, annual salary. Hebet’s relatives on the payroll were paid approximately $800,000 annually. Per the BCHC’s 2018, IRS-990, there were 25 relatives of various executives on the payroll, earning a total of approximately $2.3 million. This all seems very strange.

The Chief Financial Officer Diana Thompson, salary listed as $375,000 annually, showed three family members earning $126,000 annually. This is the CFO responsible for guiding the Foundation’s finances.

Another question, what happened to $2,560,450 in loans and transactions to key personnel? Were the loans repaid? With all the salaries, and benefits of key personnel, running in the tens of millions a year, with some doctors and dentists receiving over $1 million a year, it’s shocking that BCHF cannot afford to buy a new EKG machine for the Borrego Clinic. One of the most important pieces of equipment for the elderly, the machine does not always work.

The Sun has also been told that in the Borrego Clinic budget there was no allowance for new equipment. One of the Clinic’s patients told the Sun that on a visit the person noted, there was no hot water available for the sinks.

With all this money being spent, why do they not look after the initial Clinic that laid the golden egg? A golden egg that turned over $236 million in income, reported on the last public IRS 990 disclosure in 2018.

Seems the executives were too busy lining their own pockets to worry about our Clinic. Most of them were earning over $300,000, and some over $500,000 annually. Meanwhile, people have been leaving the town because of Borrego’s inadequate medical facilities and newcomers don’t want to move here for the same reason.

The Borrego Clinic should go back to the deal that was discussed in 2016, where BCHF would hand over the clinic to the Endowment Fund, which would build a 10-bed, level-five critical-care unit in town near the library. The rest of the BCHC executives could then continue earning high salaries, paying family members, and buying fancy cars, at other’s expense.

The town would be happy just to have the medical facility.

P.S. One should not forget this is a nonprofit 501(c)(3) charitable organization, funded with federal and state taxpayer’s money.