Mat-Su Borough Assemblyman Rob Yundt is introducing a resolution to highlight what he sees as oppressive operational practices by the Mat-Su Health Foundation (MSHF), an enormously wealthy organization that was originally founded to promote the health and wellbeing of Mat-Su residents.

Most of the organization’s fortune comes from capturing 35% of the annual profits from Mat-Su Regional Medical Center. Much of this money is then redistributed to myriad nonprofit and educational groups that align with the health foundation’s philosophy and ideology.

In recent years, however, the organization has been mired in controversies over its decision to fund workshops, educational events and training sessions that promote controversial leftist ideologies, critical race theory and the LGBTQ agenda, which many residents see as undermining traditional family values in the largely conservative Mat-Su area.

A sizable portion of the foundation’s roughly 360 members want to change the organization’s bylaws regarding how board members are elected. Current bylaws, however, allow only sitting board members to select and replace fellow board members. The larger membership has absolutely no say in the matter.

Yundt’s memo argues that the MSHF’s 35% stake in the hospital has allowed it to “siphon off tens of millions of dollars” every year with the idea to “put it into the community.”

While 25% of the members can call a special board meeting, they have no authority to set the agenda. Only board members can do so. Given these circumstances, the board enjoys complete, insular power over the foundation, its bylaws and overall direction.

On May 23, Yundt filed a resolution with the borough clerk, which will be introduced at the June 4 Mat-Su Assembly meeting. The non-binding resolution simply requests that the MSHF to do two things at its upcoming June 10 membership meeting.

First, he wants the non-profit to amend its bylaws so that dues-paying members can actually vote on all future board of directors.

In a memo about the resolution, Yundt explained his concerns.

“Even if there was misconduct, incompetence, or fraud by a Director, the membership would be powerless to act,” the memo states. “In reality, the Board can operate as a closely held organization, elect who they want, and control hundreds of millions of dollars without residents of the Matanuska-Susitna Borough being able to take any action whatsoever. This acts as a form of taxation without representation.”

Secondly, Yundt’s resolution calls on the foundation to lower the costs at Mat-Su Regional Medical Center, where the MSHF enjoys 35% of both ownership and profits, and has five of its board of directors sitting on the hospital board.

Yundt’s memo points out that Mat-Su Regional Medical Center is a “for-profit monopoly hospital,” and the only hospital in the Matanuska-Susitna Borough.

“The prices at Mat-Su Regional are some of the highest in the State of Alaska, which in turn has some of the highest hospital prices in the US, which in turn has some of the highest hospital prices globally,” he heighted. “The net result is that Mat-Su Regional can pay all its operating expenses and still make tens if not hundreds of millions of dollars in profit every year.”

Yundt’s memo argues that the MSHF’s 35% stake in the hospital has allowed it to “siphon off tens of millions of dollars” every year with the idea to “put it into the community.” Yet, Yundt argues that the health foundation should be advocating for “lower hospital costs,” rather than growing its vast financial assets on the backs of patients.

“With a single hospital, there isn’t much choice for the residents of the Matanuska-Susitna Borough,” he wrote. “An overwhelming majority of people would prefer to pay less in the first instance rather than have some portion of their hospital billings to be siphoned through a foundation where the Board of Directors controls itself, and the foundation decides where the money will be spent. Likewise, an overwhelming majority of patients at the hospital would not be in favor of paying higher Hospital bills so MSHF could build a facility in Wasilla currently valued at $20,638,600, even though they pay no taxes on it.”

According to the MSHF’s annual reports, it has taken in $330 million in hospital profits over the past 15 years. The group’s 2022 Annual Report shows that it amassed more than $45 million from its share of the hospital’s profits that year, alone.

“$45,020,000 equates to $123,342 per day in profits for a ‘non-profit,’” Yundt observed.

TAKING ACTION

— The Mat-Su Health Foundations next annual membership meeting is June 10 at The Menard Center in Wasilla. The cost to become a member is $5 per year. New and continuing members can attend the meeting and voice their thoughts. This is the link to join the MSHF.

— Click here to email the current MSHF Board of Directors, where members can ask them to introduce motions to amend the bylaws at the June 10 membership meeting.

— To contact Mat-Su Health Foundation President and Chief Executive Officer Elizabeth Ripley, email eripley@healthymatsu.org or call (907) 373-2805

— Click here to contact other members of the Mat-Su Health Foundation administration.

— Click here to see who serves on the Mat-Su Health Foundation Board of Directors.

— Click here to apply to serve on the Mat-Su Health Foundation Board of Directors.

— People can also testify during the June 4 Mat-Su Borough Assembly meeting, which starts at 6 p.m. in the Mat-Su Borough Assembly building in Palmer. Click here for more information.

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