Screen grab via Valley Children’s video
Written by Ben Hensley
Fresno Councilmembers Garry Bredefeld and Miguel Arias sent a letter to California Attorney General Rob Bonta outlining a list of concerns regarding Valley Children’s Hospital, including $124.5 million investments across two continents.
IRS forms also reveal that 28 Valley Children’s Hospital executives had combined earnings of $26.95 million in 2021, according to the letter. CEO Todd Suntrapak earned $5.1 million in 2021 and $5.4 million in 2020, making him the highest-paid CEO of any children’s hospital in California.
Additionally, the letter and media reports note a $5 million forgivable loan as a retention incentive to Suntrapak. The loan was used to purchase a home in Carmel, California — a home which has no lien on it.
On Wednesday, Valley Children’s issued a statement clarifying the loan was a retention tool that is not uncommon in industry practice.
“Should the CEO voluntarily leave the organization within the 10-year period after the loan was advanced, the unamortized balance of the loan is required to be repaid,” according to the letter. “And we are able to provide an appropriate level of compensation for our leaders because of the superb performance of our investment portfolio and our financial stewardship – not from the payments we receive from the Medi-Cal program, which, generally speaking, do not even cover the cost of the care we render to Medi-Cal beneficiaries.”
Despite that, many in the city, including residents, councilmembers and even local business owners, said they have pulled their support for the hospital, which claimed more than $48 million — more than 4% — of its earnings from contributions in its 2022 tax filings.
Bredefeld and Arias also questioned why the hospital has $124.5 million in offshore investments in the Caribbean, Central America and Europe. The letter raises questions on whether the offshore assets could include Medi-Cal proceeds, which covered nearly three quarters of patient visits in 2022.
“The Valley Children’s Hospital already falls behind similar hospitals in providing charity care for people who cannot afford to pay for life-saving treatment, as reported by news reports,” the letter reads. “Since excessive executive pay was discovered, our offices have received numerous complaints from employees and patients at Valley Children’s Hospital regarding significant operational gaps.”
“As California’s chief regulator of charities, we humbly request an investigation into the operations of Valley Children’s Hospital and its Medi-Cal receipts,” the letter concludes.
As of this posting, The Business Journal is currently awaiting a response from Valley Children’s Hospital.
This story will be updated
