Politicians Denounce Trustees of $50-Million Health Fund

Inglewood-area politicians Tuesday berated trustees in control of $50 million in local health care charity funds, accusing them of insulting the community by shunning its spending ideas and narrowly interpreting its health care needs.

“When you’re totally out of touch with reality, you shouldn’t be making decisions,” said Inglewood Mayor Roosevelt Dorn, his voice raised. “This plan [of the trustees] is totally out of touch with reality.”

The sharp words came at the first and only scheduled public meeting on the spending plan for the $50-million trust fund, a charity consisting of proceeds from the sale of Inglewood’s nonprofit Centinela Hospital Medical Center to a for-profit chain. By law, the money must go to charity. But as in many communities where such sales occur, controversy has erupted over the best use of the funds.

In Centinela’s case, the very decision-making board presiding over the money--the core of the former nonprofit’s parent board--has come under fire. Community leaders have questioned its authority and motives, especially after learning that trustees originally intended to appoint City of Hope in Duarte as manager of the fund and perhaps to funnel some dollars to programs at that hospital.

The trustees recently scrapped those plans after objections from the community and the state attorney general’s office.

Tuesday’s meeting--which the trustees voluntarily convened--was intended primarily to publicly air the board’s plan. The proposal would devote the entire endowment to health care for children and young adults, splitting the annual yield--about $2.5 million--among a children’s health insurance program and four nonprofit hospitals.

“This has not been easy,” said board President William C. Miller of the trustee’s deliberations, adding that “it was never the board’s intention to use the money other than for the community. Never.”

While many speakers lauded the commitment to children and some voiced strong support for the plan, several questioned the exclusive focus on young people. They feared it might duplicate coverage soon to be offered through a massive insurance package the Legislature approved for children of the working poor.

“If you want to do anything, help buy health care for the parents of these children,” said health advocate Lark Galloway-Gilliam.

But by far the strongest criticism came from politicians, who complained that the money sat untapped for a year while no one bothered to formally consult the community. They were not appeased by the trustees’ pledge to include at least two community members on a new seven-member advisory board overseeing the fund.

Several Inglewood city officials threatened legal action if the plan is not amended to suit what they term local needs. “If you want a challenge, if you’re looking for a fight, you can be assured you will get one!” said Councilwoman Judy Dunlap.