Official with Alaska Native health agency made $1 million, and now another health group says the payment was wrong


A legit fight between two tribal health care powerhouses has led to revelations that the Alaska Native Tribal Salubriousness Consortium board boosted its chairman’s pay to more than $1 million — up from $122,000 two years before.

The contend with, played out in a lawsuit filed in January by the Southcentral Foundation, another Inherent health provider, challenged the 2014 decision by a committee of the ANTHC cabinet to authorize a sharp increase in compensation for ANTHC president and chairman Andy Teuber.

Teuber was already making sundry than $500,000 working full time for another nonprofit, the tribal haleness provider in Kodiak. He still holds both jobs.

In August, months after the prime lawsuit was brought, Southcentral Foundation said in a court filing that Teuber had received an «excessive compensation package.» While the payments to Teuber weren’t disclosed in any blatant filing in the lawsuit, his compensation appeared in a separate tax document that ANTHC was coerced to make public as a nonprofit corporation. The tax document was also filed in August.

The lawsuit also challenged payments to undercurrent and former board members — including those who, Southcentral Foundation asserted, authorized Teuber’s harvest. Southcentral Foundation seeks a change in governance in ANTHC, not a return of cold hard cash paid to executives or board members.

The sizes of the payments to members of the ANTHC scantling also weren’t in the lawsuit. But the public tax document recorded payments to 39 course and former members of its board of directors in its tax year ending Sept. 30, 2016.

Five impresari and a former director each collected more than $249,000, not counting Teuber, who himself is a head. Seventeen current and former directors received $30,000 or less. The acts for the differences in payments weren’t disclosed. 

Southcentral Foundation runs fettle clinics in Anchorage and elsewhere in Alaska and, with ANTHC, shares say-so for running the Alaska Native Medical Center — the health care complex on Tudor German Autobahn with a 167-bed Native hospital, primary care dexterities and labs. The foundation said in the lawsuit that Teuber’s raise diverted unusual federal money that should have been spent on fettle care for Alaska Natives.

In response, the ANTHC board asserted in a precooked statement that Southcentral Foundation’s allegations amount to a «smokescreen.»

Southcentral Base’s «real goal» in the lawsuit, the ANTHC board said, wasn’t to display Teuber’s pay and how he obtained it, but to «take control of statewide tribal health aids» by embarrassing and eroding support of ANTHC and its directors.

ANTHC said in another unrestricted statement, posted online, that the cash for its board came from a elimination with the federal government that was specifically intended to cover the administrative expenses of watch overing Alaska Native health programs — including the cost of paying management members for their work.

«For years, individual directors graciously fulfiled our people and made significant personal and professional sacrifices to ensure our prosperity,» the ANTHC board said. «Due to (the federal Indian Health Service’s) failing to uphold its financial obligations, the board set fees at a sizably reduced direct to support our organization. And so, it was only fair for us to provide a retroactive adjustment when ANTHC’s feud with IHS had resolved.»

Officials at both tribal organizations, including Teuber, declined numerous begs for interviews.

‘More than satisfied with the president’s performance’ 

The catalogues of the payments to Teuber, the board and former board members have been blanked out from filings in the lawsuit, with the specifies sealed under a confidentiality agreement approved by both sides and signed by the U.S. partition judge overseeing the case, Timothy Burgess. But some figures are grouped in ANTHC’s latest nonprofit tax filing, dated Aug. 4.

Andy Teuber, president of the Alaska Native Tribal Health Consortium and the Kodiak Area Native Association, at a conference in Anchorage in 2015 (Marc Lester / ADN archive)

Andy Teuber, president of the Alaska Natal Tribal Health Consortium and the Kodiak Area Native Association, at a forum in Anchorage in 2015 (Marc Lester / ADN archive)

The tax return, on Internal Gate Service Form 990, shows that Teuber’s pay as chairman and president of ANTHC stir up to $1.05 million in the tax year that ended Sept. 30, 2016, up from $122,000 two years in the forefront.

Teuber had additional compensation from his other full-time job as president and chief head honcho of the Kodiak Area Native Association. KANA paid Teuber $539,000 in the tax year that ended Sept. 30, 2015, concerting to KANA’s 990 form, the most recent available.

The two organizations rumoured in their 2014 tax filings that Teuber worked more than 100 hours a week between them — 65 hours for ANTHC and another 37.5 at KANA, both during the one-year epoch that ended Sept. 30, 2015.

Another document, the public statement by ANTHC’s take meals on the lawsuit, said Teuber’s working hours were less superior than who he was and what he accomplished.

«The president has a salaried position that is paid based primarily on the level of duties, responsibilities and expected outcomes willingly prefer than the specific number of hours worked,» the statement said.

The report didn’t detail Teuber’s duties and responsibilities, or say what specific end results the board expected or how it assessed his performance. Another statement, posted on an ANTHC website that delivers the lawsuit, said Teuber is expected to provide strategic leadership, administration of financial functions, and be involved with major contracts and partnerships.

«To escort, the board of directors is more than satisfied with the president’s carrying-on which merits the full amount of compensation paid,» the board mean in its August statement. «In fact, the consortium’s progress under (his) leadership has far outpaced the board’s expectations.»

The one-time payouts to current and former ANTHC trustees members, meanwhile, appear to total $2.5 million. That thousand was calculated by Alaska Dispatch News based on the large increase in payments to informed and past board members as reported in the nonprofit tax returns. The big payments were reported in the replacing dated 2015, and the smaller ones in 2014. The organization itself wouldn’t present a breakdown distinguishing payments for current and past board service.

Of the six in the air and former board members who received $249,000 or more, four — Evelyn Beeter of Chistochina, Andrew Jimmie of Minto, Emily Hughes of Teller and Lincoln Bean of Kake — declined to reference. A fifth, Robert Henrichs of Cordova, didn’t respond to a request for remark and the sixth, H. Sally Smith of Dillingham, died earlier this year.

Rita Stevens, the helpmeet of Kodiak Republican Sen. Gary Stevens, received a payment of $107,000 at length year, which came after she finished nearly a decade on the ANTHC panel in 2006. She didn’t respond to a request for comment.

In court filings in its lawsuit against ANHTC, Southcentral Endowment asserted that the payments were aimed at inducing the board associates to sign off on Teuber’s raise.

The Alaska Native Tribal Health Consortium office building, right, and the connected ANTHC Healthy Communities Building are reflected in the neighboring lake on the Alaska Native Health Campus. (Erik Hill / Alaska Dispatch News)

The Alaska Native Tribal Health Consortium office structure, right, and the connected ANTHC Healthy Communities Building are reflected in the neighboring lake on the Alaska Basic Health Campus. (Erik Hill / Alaska Dispatch News)

ANTHC tokens, in its statement posted online, that the payments were «the right hang-up to do» after the organization received the settlement from the federal government — $153 million proposed to cover years of underpayments for ANTHC’s administrative costs of running federally staked programs.

Those administrative costs, ANTHC argued, included the «outlay of governance,» like compensation for board members.

The settlement was one of hundreds made with tribal groups across the state and elsewhere in Alaska that have brought claims similar to ANTHC’s.

First the settlement, the ANTHC board members were paid fees of between $35,000 and $65,000 a year for an general of five hours a week of work. But those payments were at a «far mark down rate» than what board members should have grossed, ANTHC said in its online statement.

Beeter, the treasurer of ANTHC’s enter — who herself received a $268,000 payment last year — dismissed questions with respect to the salary increase and payments as «old news.»

«Where’d you find this at? All about at Southcentral Foundation or under the desk or somewhere? Obviously, I can’t talk on every side it because it’s going to court,» said Beeter, president of the Gakona-based Mt. Sanford Tribal Consortium, a healthfulness and social services organization. «You need to go to court and listen, just have a weakness for the rest of us.»

An ANTHC spokeswoman, Michelle Weston, said in an email that Teuber’s income is competitive with other health care executives’ and only take to the air after ANTHC switched to a market-based system of compensation instead of one tied to federal places for medical professionals.

«We believe Alaska Native professionals should be paid vend rate for their services,» she said.

Weston declined to provide the self-assured analyses that ANTHC says were used to determine the proportions of Teuber’s raise and the board members’ payments, nor would she name the advisers who provided them.

Conflict and competition

The federal government once ran Alaska Inherited health care programs through the Indian Health Service. But that started changing with legalization of the Indian Self-Determination and Education Assistance Act in 1975, which spurred nations to take over management of programs under federal contracts and objecting federal money.

Southcentral Foundation and ANTHC are two of Alaska’s largest Indigene health care providers.

ANTHC is governed by a board with 15 associates representing regional health organizations from Southeast Alaska to the North Declivity, as well as unaffiliated tribes. One of those regional organizations is Southcentral Grounds, a nonprofit that serves Alaska Natives from Anchorage, the Mat-Su and dozens of attached rural villages as far away as the Pribilof Islands.

Southcentral Foundation and ANTHC include faced tensions dating back to the 1990s, when ANTHC was protocolled. A section of federal legislation authored by then-U.S. Sen. Ted Stevens dictated that the two codifications would jointly manage the new Alaska Native Medical Center on Tudor Street — with Southcentral Foundation providing primary health care and ANTHC cored on the hospital, emergency medicine and administration.

ANTHC’s court filings specify years of ensuing conflict and competition for real estate, patients and payments. But the tensions contain rarely spilled into public view.

That changed after ANTHC received the $153 million resolution from the federal government. The agreement was announced June 2014, granting the fight between Southcentral Foundation and ANTHC didn’t become exposed until more than two years later, in January, when Southcentral Basis filed its lawsuit challenging Teuber’s raise and the new board structure eye which it was made.

Five months after the settlement, Southcentral Underpinning said, Teuber proposed an executive committee be established as a smaller module of the board, but with «virtually all of the power of the full board.» Southcentral Underlying’s attorneys, from Anchorage and Los Angeles, said that the executive panel — which it argued was made up of board members «loyal to Mr. Teuber» — then approved his eliminate.

ANTHC chief executive and administrator Roald Helgesen also accepted a raise, which Southcentral Foundation also alleges came after the chief committee approved a new contract.

Helgesen was paid $750,000 last year, up from $440,000 two years up front, according to ANTHC’s tax filings.

The executive committee’s meeting to authorize the gathers took place without the knowledge of Southcentral Foundation’s representative on the ANTHC lodge, who learned about the meeting two months later, according to Southcentral Basement’s court filings.

Weston, the ANTHC spokeswoman, didn’t respond when petitioned for the names of board members on the executive committee.

The five-story Southcentral Foundation Children’s Dental Clinic waxes above the Southcentral Foundation administration building Friday on the Alaska Domestic Health Campus. (Erik Hill / Alaska Dispatch News)

Southcentral Bottom argued in its court filings that Teuber convinced the executive cabinet to approve his raise by offering retroactive payments to all ANTHC board colleagues, past and present. Some of the details of Southcentral Foundation’s allegations are redacted from court filings, but ANTHC’s tax records show that current and former board members received one-time payments during the framework’s last fiscal year, which ended Sept. 30, 2016.

Teuber endure year earned $843,000 in base pay, plus a $219,000 bonus, $21,000 in retirement payments and $3,000 in nontaxable emoluments, according to ANTHC’s IRS return for the 2015 tax year, which ran through Sept. 30, 2016.

Teuber’s back full-time job at the Kodiak Area Native Association paid him a $539,000 despicable salary in the tax year ending Sept. 30, 2015, plus $59,000 in «other compensation,» agreeing to KANA’s most recent tax filing.

ANTHC officials and Teuber wouldn’t rebuttal questions about how he balanced the demands of the two jobs. KANA’s board throne, Loretta Nelson, declined to comment.

‘Sizably reduced’ board payments prior to settlement

Southcentral Foundation argued in its lawsuit that the ANTHC game table turned over its powers to the executive committee and broke the federal law authored by Stevens that produced ANTHC. That law requires the organization to be governed by a 15-member board and for decisions to be traveled by consensus «whenever possible.»

Teuber’s proposal to create the executive board violated that law because it allowed the committee to take actions without the exhaustive board’s approval, Southcentral Foundation’s filings say — though they add that after the lawsuit was filed, ANTHC’s take meals amended its bylaws to fix that problem.

ANTHC, on its website, argues that management members received «sizably reduced» payments from what they meet before the $153 million settlement with the federal government, combining that the organization hired a «reputable, independent third party» to decide the appropriate payouts.

The ANTHC website doesn’t identify the third division or provide its report, and officials also were unwilling to do so.

The board associates’ payments also weren’t authorized by a proposal from Teuber, harmonizing to ANTHC. Instead, ANTHC says, the payments stemmed from an rating by a separate «ad hoc committee» that Teuber asked the executive committee to set up, after the buxom board asked him to evaluate historic board compensation.

The committee’s good words, ANTHC added, were considered in June 2015, while Southcentral Fundamental principle said in court filings that Teuber’s raise was authorized six months earlier.

As for Teuber’s own emolument, ANTHC says it was raised to reflect the organization’s growing size and freedom of activities — its revenues were $587 million in its tax year ending Sept. 30, 2016, up from $415 million six years earlier — along with multiplying demands of the jobs of board chairman and president.

Nonprofit Providence Vigour and Services pays its chief executive in Alaska, Bruce Lamoureux, $680,000, while Richard Mandsager, the move of Providence Alaska Medical Center, the 364-bed Anchorage asylum with more than twice the capacity of the Anchorage Native convalescent home, is paid $950,000, according to Providence’s most recent tax filings, from 2014.

Far-sightedness, a network of 50 hospitals based in Washington state, doesn’t scatter out its finances for Alaska on a separate tax return, making it difficult to compare the plan’s operations with ANTHC’s.

Assessing fettle care executives’ compensation can be complex because of the difficulty in measuring their exhibit, said Guy David, associate professor of health care management at the University of Pennsylvania’s Wharton Teaching.

It’s hard to determine how an organization would look «with this living soul or with somebody else behind the wheel,» he said. But one thing to look for, David reckoned, is whether the board of directors is wielding power over a chief directorship or is «more of a rubber stamp.»

«The question is, given the mission of the organization, is this herself basically extracting surplus from this institution?» he said.

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