Healthcare Foundation Betrays the Public

California Healthcare Foundation President Mark Smith erroneously claims that state regulators and legislators are investigating his public charity’s diversion of $40,000 in taxpayer resources to the HMO industry lobby because Consumers for Quality Care has a personal grudge against him and is “vindictive” [“HMO Charity Disbursements Come Under State Scrutiny,” April 29].

When Blue Cross relinquished its not-for-profit status to become a for-profit company, the tax-exempt assets from the conversion were put into a trust for the public--the California Healthcare Foundation--to be completely separated from the pecuniary interests of the new for-profit company. That public trust has been breached.

The HMO industry lobby is the single greatest threat to public health in this state, and it is a misappropriation of a taxpayer-funded public trust to finance a lobby that threatens the public’s health at every turn. This grant is the equivalent of the American Lung Assn. funding the tobacco lobby, only the added impropriety here is that the donation was made with taxpayer resources. Mr. Smith’s failure to recognize this fundamental reality is precisely the reason his resignation from the foundation is warranted.

JAMIE COURT

Director, Consumers

for Quality Care

Santa Monica