The Fair Political Practices Commission has rejected a union's complaint that alleges Bakersfield, Calif.-based Kern County Hospital Authority overpaid its executives through their own private consulting firms.
The commission issued an initial rejection "based on certain technical issues," SEIU 521 said in a statement shared with Becker's on May 8.
The union also said it will be appealing that initial rejection "within 20 days as provided for in the applicable regulations. We expect that with additional information, the FPPC will reconsider its decision."
"The residents of Kern County need and deserve a public hospital where the top priority is providing quality care, rather than enriching C-suite executives. SEIU 521 will continue to advocate for these priorities wherever we can do so," the union said.
SEIU Local 521 filed a complaint with the state Fair Political Practices Commission in February. The filing alleges Kern County Hospital Authority — which owns and operates Kern Medical and its affiliated outpatient clinics — overpaid top executives approximately $23 million over four years. The complaint names Kern Medical CEO Alton Scott Thygerson; Kern Medical CFO Andrew Cantu; and Russell Judd, former Kern Medical CEO from 2016 to 2021.
The complaint alleges payments to consulting firms that the executives helmed and that contracted with the hospital exceeded contractual amounts by up to 147%, amassing to tens of millions in unauthorized compensation. It also accuses the board of governors of making retroactive amendments and payment approvals under executives' influence. Russell Bigler, the chair of the board of governors, resigned in April after nearly a decade of service.
SEIU Local 521 questioned the timing of Mr. Bigler's resignation, alleging that the reasoning for the exit had been kept from the public. In an April 30 statement shared with Becker's, Kern Medical called the union's narrative "false" and said Mr. Bigler "resigned due to a significant health issue and for no other reason."
Regarding the union's complaint with the Fair Political Practices Commission, Mr. Thygerson told Becker's May 8 that the union's allegations are "meritless" and "frivolous." He also said the union's allegations are disappointing given efforts by Kern Medical executive leadership that turned around an organization that was nearly closed to a now financially stable institution that continuously works to expand care access in a fiscally responsible manner, including expanding clinic locations from three to 10 and increasing the number of graduate medical education programs, among other initiatives.
Kern Medical is an acute care teaching center with 222 beds, according to its website.
Editor's note: This article was updated on May 9.