Halvorson: Lying to the IRS?

Former Minnesota Attorney General Mike Hatch made it clear to the Senate Finance Committee exactly what he thought of George Halvorson and his “leadership” at HealthPartners: the Attorney General said there was a complete “lack of accountability and proper stewardship.” He even alluded to Mr. Halvorson being a part of a group of “bad [executives]…who personally profit at the expense of…charitable organization[s] and [their] mission[s].” (See the recently uncovered transcript.)
When finally pushed to address the Attorney General’s investigation last year, in an email to all Kaiser Permanente employees, George Halvorson insisted that “no actions, no citations, no regulation violations, and no mandatory results of any kind” were imposed as the result of the Attorney General’s investigation.
I guess Mr. Halvorson doesn’t consider the lawsuit the Attorney General filed, and the resulting settlement an “action.”
As if lying to (or at least misleading) my colleagues at Kaiser Permanente wasn’t disgraceful enough, Mr. Halvorson and HealthPartners weren’t very honest with the IRS, either. Attorney General Hatch testified that Mr. Halvorson and HealthPartners “took steps to conceal…[executive] payments by mislabeling them, and…improperly omitted executives’ deferred compensation from the IRS [on its filings].”
Now, I wonder why Mr. Halvorson got the hell out of Dodge (or, in this case, Minnesota) when the Attorney General there launched his investigation?
Mr. Halvorson’s abuses were many, and you can’t help but laugh at more than a few. He had the not-for-profit pick up the tab for a personal Harley-Davidson book, which he labeled “business strategies research.” Interesting. Oh, and his personal Lean Cuisine microwaveable meals were deemed business “supplies.” Right.
Those transgressions were probably a wee bit cheaper than Halvorson’s $250,000 country and golf club memberships and his $50,000 season tickets to the Minnesota Vikings.
The Attorney General especially loved the luxurious “‘trade mission retreats’ to Brazil, Chile, and Ireland, though, [since] the organization only operates in Minnesota and western Wisconsin.” And he was absolutely tickled by the $9,000 of not-for-profit member money Mr. Halvorson spent “to travel to Australia to find out: ‘Are we pricing consumers out of health care?’” Indeed.
But the Attorney General saved his most direct criticism for HealthPartners’ rubber stamp board, which allowed Mr. Halvorson to do as he pleased: “…the HealthPartners board of directors not only failed to prevent these abuses, [it] actively participated in them.”
You’ve got to ask: Why did eight of Kaiser Permanente’s twelve independent board members resign or otherwise leave the board shortly after the Minnesota report was released? Mr. Halvorson has only said that “the full results of that audit were read in detail by our Board.” He had never disclosed that eight directors resigned at about the same time, leaving the organization with five simultaneously vacant seats at one point shortly after the audit was published.
I think it’s time California Attorney General Jerry Brown take a closer look at George Halvorson and his handpicked Kaiser Foundation Health Plan Board of Directors, don’t you?
This story was originally posted at justendeal.com.
Justen,
Great sleuthing. You ask the tough questions.
It seems that the CEO leadership and Board conduct described by former AG Mike Hatch has become the MODEL for other large “charitable” health care organizations, who deploy dangerous (to patients) computer contrivances for personal and/or institutional financial gain, steal from the taxpayers (and patients), violate their own compliance, and attempt to muzzle any dissent. All who read Justen’s excellent presentation should complain to AG Brown, Senate Finance Committee Chair Baucus, and their own Reps and Senators.
Best regards and go Justen,
Menoalittle
How to report exempt organization compliance violations:
Internal Revenue Services
Exempt Organizations Classification
MC 4910DAL
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Dallas, TX 75242
From the Hatch testimony:
“After HealthPartners began to pay for massages at board meeting, masseuses were implored to “bring more oil” to the next meeting. Ironically, the HMO refused to cover massage therapy for victims of Parkinson’s Disease.”
This is beyond appalling, and indicative of everything that is wrong with our health care system in this country: a few privileged and morally bankrupt individuals profiting from the pain and suffering of the many.