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California Health Districts Sitting on Reserves

Monday, Mar. 12, 2012

Responding to a reporter for the New York Times investigating health care district spending in California, Center Senior Fellow in Government Ethics Judy Nadler commented, “The outrage factor is we have public agencies that are collecting money that is not being used for the purposes for which the agencies were originally established....  The question is, how are they helping the public right now by having that money in the bank?

For example, the tax-supported Peninsula Health Care District was holding a $43million reserve while uninsured citizens of the district were waiting as much as a year to see a doctor.  The Los Medanos Community Healthcare District spent just half of its revenue, with the balance--more than $400,000-- going to "administrative and operating expenses, including stipends for the board of directors, travel and election fees and a board retreat."



Tags: bioethics, government ethics, medical ethics, special districts