Hospital officials, public react to council comments about Catalina Island Health CEO

Many public remarks were critical of council response to bad financial news about local hospital

File photo

First of two parts.

On Jan. 9, Catalina Island Health CEO Jason Paret warned the City Council that the Island’s only hospital was in financial trouble.

Due to the length of comments, this is the first of a two-part article on what was said during the meeting.

During the public comment part of the Jan. 16 City Council meeting, many Avalon hospital officials and staff criticized some council members for the way they treated Paret.

CEO Paret, his daughter, and hospital staff expressed fear for Paret and his family and criticized the council for their lack of support.

However, some of the public expressed support for the questions council members asked.

Background

On Jan. 9, after Paret said that if salaries were cut, the hospital would not have employees, Councilmember Mary Schickling said: “You could start at the top.”

Later in the meeting, she said she wasn’t attacking Paret.

Councilmember Lisa Lavelle said administrative costs of the hospital needed to be a piece of the puzzle. She requested monthly financial information from the hospital. A member of the public called for an audit of the hospital. Paret said the hospitals financial records were audited annually.

Jan. 19 comments

“I want to live in a kind community. But I do also want to tell the truth,” Paret said.

He said behavior of three council members at the previous meeting was horrible. He said they put the hospital at greater risk of closing. (He did not identify the three council members by name.)

Paret said Councilmember Schickling was on her phone 75 % of the time while Paret was talking.

“I know that you know that my family has been targeted in the community,” Paret said.

Paret then talked about his experience as a survivor of an active shooter incident at another hospital.

“I hold you three accountable,” Paret said

He said he cares about this community.
“You have been misled by people,” Paret said.

Mayor Anni Marshall reminded the public that they had a two minute limit for speaking

A man who did not give his name said Avalon needed to have a talk about bullying.

“We came to ask you to do your jobs because you work for us,” he said.

“This is not OK. Please do not look at me like that. I have with me a notice of intent to recall and you will be recalled. I’m letting you all know right now,” he said.

(The city election is scheduled for June, with they mayor’s seat and two council seats in play.)

Licensed nurse Jessica Flores was the next to speak.

She said she had been with Catalina Island Health since 2020.

She said the presentation by Paret last week was meant to shed light on injustices in the health care system.

She said minority groups including Latinos, make up a majority of MediCal recipients and of the Avalon community.

She then spoke in Spanish. She was followed by a woman who also spoke in Spanish.

The audience applauded.

“Thank you very much. I’m sorry, but I don’t understand Spanish, but … ” Marshall said.

Jennifer Rivera, Human Resources manager for Catalina Island Health said she was here to address a matter that has been deeply troubling her.

Rivera said that for awhile now hospital CEO Paret had been a target of unfair attacks by the community and the council.

Rivera said the treatment had taken a toll on Paret and on his family.

Rivera said he gave a presentation of compelling evidence of unfair reimbursement discrepancies that the local hospital receives compared to others across the state.

“These discrepancies threaten the sustainability of our hospital and by extension the health and well being of our community,” Rivera said.

“Instead of addressing an adequate reimbursement, some in our community unfairly blame our CEO’s salary,” Rivera said.

“This response completely misses the point. This narrow focus demonstrates a lack of understanding an concern for the real issue that can result in our community losing its vital hospital,” Rivera said.

“Simply getting rid of him or reducing his salary will not resolve the underlying problem,” Rivera said.

“I am strongly urging you to please remove your personal bias and consider the broader implications of the situation. It is disheartening to witness the spread of lies and misinformation about our CEO,” Rivera said.

“The relentless and unjust treatment he has received is nothing short of shameful and it’s unacceptable that his family has become a target as well,” Rivera said.

“I am stressed every day, wondering what hateful comment is going to be said next,” Rivera said.

“Right now our hospital needs everyone’s support,” Rivera said.

“I’m pleading with this council to please stop the grandstanding, stop perpetuating misinformation about Jason, and educate yourselves on the real issues the hospital is facing,” Rivera said.

“This is a time when we need to be unified so that we can overcome these challenges and ensure the continued well being of our hospital and the community it serves,” Rivera said.

The audience applauded.

Kristi Allegria spoke in support of the council. She thanked council and staff for listening to hospital’s financial issues.

“In my opinion, the council held a special meeting with open mind, kindness, and again, tact and grace,” she said.

“At my job in COVID, we all had to cut back our hours. Some people worked one day a week. Some people worked up to four. I know you can’t cut nurses, doctors, staff, but there are ways to save money if you want to extend the livelihood of our hospital,” she said.

She thanked council for asking the questions that the community was asking.

The audience applauded.

“I would also like to thank the council for their questioning, not their attacks,” Janice Hall said.

“It was the right thing to do is what we voted for them to do, hired them to do as it were, and they did a great job,” Hall said.

“I would also like to thank the six nurses that gave up their salaries and their careers. I see a couple of them here tonight and so that we could have this discussion because I think they got it rolling,” Hall said.

Tyler Wilson read two letters from two hospital Board members who were not available that evening. The first was from Catalina Island Health Board Chair Hohenstein.

“We came to you for help contacting our representatives in the state and the county. We showed you how our hospital receives nothing compared to other hospitals in the state,” Hohenstein wrote.

She wrote that the taxes the community pays do not come back to help the community.

“Instead of trying to work with us, you chose to make comments about shutting down departments and asking our administrative team to take a pay cut,” Hohenstein wrote.

“Do any of you really understand how a business is run? You don’t shut down revenue resources and you don’t sell off your assets,” Hohenstein wrote.

“You figure out the problem and you fix it. That’s why we came to you, to show you the problem and what our plan is to fix it ,” Hohenstein wrote.

“What gives you the right to make comments that the board doesn’t know what’s going on? We do,” Hohenstein wrote.

(This was apparently a reference to an exchange during the Jan. 9 meeting when Council ember Schickling asked hospital CEO Paret if the hospital board was up to speed.)

“We supported Jason [Paret] when six nurses gave a demand letter and the resignation. Unfortunately, we weren’t going to be bullied into paying a rediculous amount of money for six nurses,” Hohenstein wrote.

“We had to accept the resignations. Did you hear that? They resigned. Jason didn’t fire them,” Hohenstein wrote.

“We came to you for help and you turned your back on the hospital and your community,” Hohenstein wrote.

Tyler Wilson also read a brief letter from Board member Judy Grear. In her letter, Grear wrote that half the restaurants in Avalon were closed for the winter and pointed out that a hospital cannot do that. (See page 4 for the text of the letter, which Grear mailed to the Islander.)

Cliff Boyd, manager of the hospital’s maintenance department, spoke in support of Paret

He said the medical center was vital to the overall well being of this community in many ways.

“What you may not know is that one of the most significant challenges that rural hospitals face is retaining qualified CEOs,” Boyd said.

Boyd said he had worked for Paret for the last four years.

He Paret approved the cost of critical items for the hospital

He said Paret was a strong leader and an asset to the community. He said the community should support Paret.

There was a smattering of applause.

Amelia Paret, Paret’s daughter, spoke next. “I think for the last month I’ve been back, it’s been horrible,” Amelia Paret said.

She said she watched her father prepare the presentation.

She said the council didn’t help him. “’Cause watching my family crash every day was hard for me,” she said

Apparently referring to one of the Catalina Discussion pages on Facebook, she described it as seeing her dad being thrown into the pit of hell. “I want to say, that night when I watched that council meeting, you brought up that the hospital could have been fixed overnight. Something that did change overnight is how this town treated us and looked at us. Do you understand that?” Amelia Paret said.

“Not cool. Not fun. It’s just nerve wracking, nerve wracking,” Amelia Paret said.

“I might be out freaking right now, but I feel like I’m speaking for my momAmelia Paret

Some members of the audience applauded.

Tim Tilpinksi read from a prepared statement. At one point he stopped and said his wife had given him her two minutes to speak. Tilpinksi said he stood before the council to discuss events that will shape the future of the hospital and by extension the well being of the entire community. “These matters pertain to the governance by our hospital board, the strategic role of the City Council, and the vital leadership provided by our CEO Jason Paret,” Tilpinksi said.

He said the Board’s expertise ranges from medical knowledge of finaicial acumen. He said financial acumen was a significant asset to the hospital.

“They have shown a deep commitment to ensuring that our hospital not only meets but exceeds the health care needs of our community,” Tilpinksi said.

“Their decisions are made with a profound understanding of our unique challenges as an island community,” Tilpinksi said.

“It is their strategic guidance that has led to many of the improvements we see at the hospital today,” Tilpinksi said.

“Thus, I urge the council members and fellow islanders to place your unwavering support in those individuals for financial oversight and governance of the hospital,” he said.

“They are not just board members, they are our neighbors, our friends and are deeply invested in the health and prosperity of our island,” Tilpinksi said.

“The role of the City Council in this ecosystem is equally crucial. While the operational management of the hospital is expertly handled by the board and the administrative team of the hospital, the council has a significant role to play,” Tilpinksi said.

“It involves advocating and liaising with state and federal bodies to ensure that our hospital receives the support and funding it deserves,” Tilpinksi said.

“For instance, ensuring fair MediCal reimbursements is not just about filling some financial gaps. It’s about recognizing and supporting the critical services the hospital provides to our community,” Tilpinksi said.

He said it was about ensuring the hospital has the resources to adapt, grow, and continue offering top-notch care.

“The council in collaboration with the hospital board and executive staff can also explore more formal affiliations with larger institutions like the University of California hospitals,” Tilpinksi said.

He said such affiliations would bring expertise and MediCal reimbursements to the hospital.

Whether Paret remains as CEO is more than a personal matter.

“It is about leadership, continuity and the time when health care faces un-precedented challenges,” Tilpinksi said.

He said Paret has proven himself a visionary leader.

He said the affiliation with UC Irvine has elevated emergency health care.

Tilpinksi said it was concerning that the environment of harassment and intimidation could influence Paret’s decision to stay. He said it was important that a leader like Paret can serve without fear for safety of his family. He said the community must leverage council’s role for advocating for the hospital.