Ethics Commission complaint filed against nursing home group

An Ethics Commission complaint has been filed against the Arkansas Health Care Association alleging that it is operating as a ballot question committee and must file the necessary financial reports.

Matt Campbell, an attorney and publisher of the online blog Blue Hog Report, filed the complaint Monday, July 18.

Campbell noted fundraising filings showing the Arkansas Health Care Association, which represents nursing homes, had donated $330,000 to Health Care Access for Arkansans, a ballot question committee that is trying to pass a constitutional amendment.

The proposed amendment, which could be on the ballot in November, would direct the Legislature to set a cap of at least $250,000 for non-economic damages in medical lawsuits and would limit trial lawyer contingency fees to 33 1/3 percent after expenses.

Campbell noted that under the Ethics Commission’s rules, “A person other than an individual or an approved political action committee … located within or outside Arkansas, also qualifies as a ballot question committee if two percent (2%) or more of its annual revenues, operating expenses, or funds are used to make a contribution or contributions to another ballot question committee and if the contribution or contributions exceed ten thousand dollars ($10,000) in value.”

The Arkansas Health Care Association has made two contributions to Health Care Access for Arkansans: $250,000 on or about May 4, and $80,000 on or about June 23.

Campbell wrote in the complaint that the AHCA’s revenue for 2014, as reported on its IRS Form 990, was $2.4 million, while its expenditures that year were $2.36 million. Two percent of its revenues therefore would be $48,015.80, while 2% of its expenditures would be $47,293.70. To reach the 2% threshold, the association’s revenue, expenditures and funds each would have had to be $16.5 million in 2014. That means the AHCA should have begun filing financial disclosure reports by May 15, Campbell said.

Rachel Davis, AHCA executive director, responded to the complaint by saying, “We have not been contacted by the Arkansas Ethics Commission regarding this complaint, nor did Mr. Campbell request any information from us before filing this complaint.

“Contributions from the Arkansas Health Care Association made to the Health Care Access for Arkansans ballot initiative came from dues already collected from our members. The AHCA Board of Directors voted unanimously to use these existing funds to support the initiative.”

She added, “We have long supported this type of reform because it benefits Arkansans, the medical community and our members.”

The Ethics Commission typically is presented a preliminary report within 60 days of the complaint, but Campbell requested a faster timetable because the proposed amendment must be certified by the secretary of state no later than Aug. 25. He wrote that the laws and rules were written so that voters can know who is funding a ballot question committee, and that the time for certifying the ballot question will have passed before the process is complete.

“Worse, if the matter is not expedited, it is entirely possible that the general election might have passed before a resolution is reached in this matter, and the people of Arkansas will have been completely deprived of their right to know who is funding AHCA’s support of Health Care Access for Arkansans’ efforts,” he wrote.