It was in 1996 that “white knight” CHW bailed out the district after Sequoia Hospital CEO Art Faro had run up a deficit of $29,000,000. Art was instrumental in “morphing” the hospital district into a healthcare district so they could redirect property taxes assessed for the hospital to “feed the hungry”. Not exactly what voters intended, when they approved creation of the hospital district in the 1940’s, as was reported in the findings of the 2000-2001 Grand Jury.
The nursing program to which Lee refers has been investigated by the 2012-2013 Grand Jury concerning the question of whether nursing graduates were benefitting residents of the district. From information provided by Sequoia Hospital, we find that of nearly 320 nursing graduates, only 80 were hired by Sequoia Hospital with 64 still employed there. Information on the whereabouts of the other graduates is apparently unknown, except that 9 of them were said to have obtained employment in Palm Springs. See: Web Link
CEO’s of both districts have compensation packages well over $200,000 a year. The district functions can and should be performed by existing government agencies. LAFCo has given them a “transitional” status, and will be contracting for a professional Municipal Service Review (MSR), recommended by the 2012-2013 Grand Jury, which will facilitate their transition.