RMCH refuses info on buyout
Hospital: Payout amounts not public

By Zsombor Peter
Staff Writer

GALLUP — Citing its confidentiality agreements with four former employees, Rehoboth McKinley Christian Hospital has denied The Independent's request of its settlements with the individuals whose contracts were bought out due to questionable financial practices.

When the hospital's board of directors decided to cut its ties with David Baltzer in 2005, over what the former CEO did or did not reveal about RMCH's failing financial health, officials refused to reveal how much they paid to buy out his contract, arguing that the hospital was not subject to the state's open records laws. When the hospital settled with three more former employees over the next few years, over allegations that they misspent hospital funds, the hospital made the same argument.

According to the Attorney General's office, the hospital, owing to its ties to the county, was in fact subject to the state's sunshine laws.

"On balance," Assistant Attorney General Elizabeth Glenn wrote Baltzer as far back as 1998, "we believe that, based on McKinley County's ownership of the hospital and its role in the hospital's management, oversight and funding, the hospital is a county hospital subject to the Open Meetings Act and the Inspection of Public Records Act."

But according to RMCH attorney Paul Melendres, that was not good enough. In a recent letter to The Independent, he claims that disclosing the records would do the public more harm than good.

"The public has a fundamental interest in settling lawsuits prior to court intervention," he writes.

Had the hospital not agreed to hold the settlements confidential, Melendres adds, the former employees would not have agreed to settle. He also refers to exemptions in the Open Records Act that protect "matters of opinion in personnel files" and "law enforcement records that reveal confidential sources, methods, information or individuals accused but not charged with a crime." According to Melendres, some of the information leading to the settlements was part of a law enforcement investigation.

"Accordingly," he concludes, "The settlement agreements will not be produced."

"It was pretty much critical to getting the issues settled," RMCH spokeswoman Elaine Bobo said. "We did not request a confidentiality agreement with the settlements, but they were critical ... and they were a request of the other parties."

In addition to Baltzer, the hospital settled with Dwayne Jordan, Herb Mosher and Todd Wenger.

During Baltzer's tenure as CEO, the hospital failed to report two years of deficit spending during which it accumulated more than $12 million worth of debt. RMCH has only recently returned to profitability. As for Jordan, Mosher and Wenger, the hospital would only say that their discussions concerned "finances and expenditures that were incurred during their tenure with the organization."