Consultant to Memorial commission will be paid $285K

A Chicago-based health care consultant will be paid $285,000 plus related travel expenses to advise the commission evaluating possible ownership and governance changes for Memorial Health System.

Memorial is footing the bill, raising questions about Larry Singer’s objectivity because the entity that’s under review and facing a possible sale is the one that’s signing his paycheck.

“How independent can you be if you know where your checks are coming from?” Luis Toro, director of Colorado Ethics Watch, said Wednesday.

Despite the possible appearance of a conflict, Toro said Singer may be objective.

“When you’re dealing in the world of experts, some people become experts because they’re so well-respected for being neutral, and you know if you hire them, you’re going to get an honest, neutral appraisal, and that’s why they command the big money,” he said.

“Other people, they command the big money for exactly the opposite reason,” Toro said.

The agreement between Singer and Memorial states Singer will be paid for 12 months of advisory services, starting this month, to the City Council-appointed Citizens’ Commission on Ownership and Governance of Memorial Health System.

The contract also covers airfare, lodging, rental car fees, meals and unspecified “additional expenses (that) must be approved (by Memorial) prior to purchase.” Singer said he expects to travel to Colorado Springs two to three times per month through November.

When the council formed the commission in January, it was decided that the commission would be independent of Memorial but that Memorial would pay any related costs.

Commission Chairman Bob Lally said Singer is accountable only to the commission. He said the commission doesn’t have a budget or contracting authority, so Memorial has to fill the gap.

“We rely on Memorial,” he said, adding that the commission sought Singer because it needed the “Todd Helton, the (Troy) Tulowitzki of health care to guide us through this maze.” Helton and Tulowitzki play for the Colorado Rockies.

Singer “facilitates our work. He guides us. We’re looking for his expertise,” Lally said.

Singer himself acknowledged that Memorial, not the commission, will pay his fees.

Singer, a Loyola University Chicago law professor, said in a letter to the commission outlining the scope of his work that he understood and was comfortable with the payment arrangement.

“My allegiance and fealty is to the commission, so that’s the best I can do given the circumstances,” Singer said in a telephone interview.

Councilman Randy Purvis said he expects Singer to “give his best professional advice on the issues facing” Memorial. He said the only available source of funding was Memorial.

“It’s certainly not going to come from City Hall,” he said. “About the only thing I can say is this is something the hospital would look at once every second or third generation, so it’s important that it be done right.”

Singer will provide the commission a “thorough understanding” of Memorial’s market position and “how the current model of ownership and governance either assists and/or hampers current and future market position,” among other responsibilities, according to his proposal.

Memorial will pay for Singer’s services from its existing budget, Memorial spokesman Brian Newsome said.
“While it’s a lot of money on an individual level, like for you or me, we should be able to absorb that within the organization,” he said. “We’ll be able to do that without compromising any programs, and it won’t affect patient care or anything like that.”