DECEMBER 2013 - Meridian Healthcare Founded And Hired
Hospital executives Russell Judd and Scott Thygerson found Meridian Healthcare Partners to “provide exclusive management services to turn around Kern County’s hospital, Kern Medical Center.” Kern Medical lost $21.2 million in fiscal year 2012-2013.
DECEMBER 3, 2013 - Meridian Contract Signed.
The Kern County Board of Supervisors approved a sole source agreement with Meridian to provide executive management services to the Kern Medical Center. The agreement initially provided for one Chief Executive Officer (filled by Russell Judd), one Chief Strategy Officer (filled by Scott Thygerson), and one Administrative Assistant. Meridian’s contract was amended several times to include additional executives.
DECEMBER 12, 2013
Kern Medical Center contracts with Cantu Management Group as the exclusive provider of financial management services for KMC, and subsequently KCHA, with CMG President Andrew Cantu performing the function of CFO for the hospital authority. (*4)
DECEMBER 2014 - Cantu Management Group Founded
Andrew Cantu founds Cantu Management Group, Inc. (*3)
January 27, 2015 - Cantu Hired
KCHA contracts with Andrew Cantu and Cantu Management Group as the exclusive provider of financial management services for KMC, and subsequently KCHA, performing the function of Chief Financial Officer and finance department for the hospital authority.
JANUARY 2016 - Transfer From County to Public Authority Finalized
Kern County supervisors finalize the transfer of Kern Medical Center to the Kern County Hospital Authority as part of Meridian’s turnaround plan with the support of Kern healthcare workers and community groups. The new agency is not subject to many of the same civil service and financial oversight rules as county departments.
MARCH 16, 2016 - KCHA Board Sworn In
Kern County Hospital Authority Board sworn in. (*5)
MARCH 18, 2016 - Board Grants CEO More Authority
The KCHA Board of Governors delegates authority to Meridian founder Russell Judd — acting as CEO— to make contracts without prior board approval.
MARCH 30, 2016 - Board Grants CEO Authority Without Oversight
KCHA management proposes a resolution delegating authority to Russell Judd to execute certain business arrangements on behalf of KCHA without oversight from the Board of Governors. The Board requested that the resolution be continued until a later meeting and referred the resolution to counsel for a legal opinion on the Board’s authority to approve the resolution. This is the only time a resolution of this nature is discussed during the open session - all future proposed resolutions are placed on the Consent Agenda.
May 2016
KCHA Board delegates authority to Meridian founder Russell Judd — acting in his role as CEO — to make certain contracts without prior board approval. (*6)
JUNE 2016
Kern County supervisors finalize transfer of Kern Medical Center to the Kern County Hospital Authority as part of Meridian’s turnaround plan with the support of Kern healthcare workers and community groups. The new agency is not subject to many of the same civil service and financial oversight rules as county departments.
JULY 1, 2016 - Board Grants CEO More Authority
The KCHA Board authorizes the CEO to open and close bank accounts and sign checks of up to $250,000 without a second signature or prior board approval.
AUGUST 17, 2016 - Public $ Transferred To Private Clinics
At the direction of Meridian, KCHA contributes $1.5 million in public funds to launch a private LLC organized to provide ambulatory surgery. The operating agreement appoints Russell Judd, Scott Thygerson, and Andrew Cantu to serve as officers and Board members of the LLC, and permits them to cause the LLC to engage in transactions involving a conflict of interest. (*8)
SEPTEMBER 2016 - Board Grants CEO More Authority
The KCHA Board of Governors delegates authority to the CEO to exempt certain Kern Medical officers — including Meridian and Cantu Management Group consultants — from completing conflict of interest disclosures as part of their contracts.
FEBRUARY 2017
The KCHA Board of Governors approves a contract amendment removing performance criteria for Meridian, replacing its discretionary performance fee with a higher guaranteed monthly management fee. The contract is approved on the consent agenda without discussion by the Board of Governors. (*10)
SEPTEMBER 2017 - Board Exempts CEO from Disclosing Expenditures
The KCHA Board of Governors drops the requirement that the CEO provide the Board of Governors with a quarterly written report of expenditures paid pursuant to the Resolution designating him as KCHA’s Purchasing Agent. (*11)
2017-2021
KCHA pays Meridian nearly double or more than double the maximum payable allowed by Meridian’s contract each fiscal year between 2017 and 2021. (*12)
AUG 21, 2019 - Board Approves New Cantu Contract
The Board of Governors approves a new Cantu Management Group agreement, superseding the company’s original agreement.
JANUARY 2021 - Board Begins Unauthorized Payments to Cantu
KCHA makes the first of 15 unauthorized overpayments to Cantu Management Group — totaling $2,921,527.97 — that exceed caps in the firm’s original contract with the hospital authority. (*13)
JANUARY 2022 - New CEO Transitions In The Leadership
Meridian founder Russell Judd retires as KCHA/Kern Medical CEO. Meridian Vice President Scott Thygerson replaces him as KCHA/Kern Medical CEO.
AUGUST 2022 - New Leadership Hired
KCHA hires Scott Thygerson, Andrew Cantu, and Meridian executive Renee Villanueva as direct employees to continue managing the hospital authority and KMC.
JANUARY 2023
The KCHA Board of Governors authorizes a retroactive agreement with Kern Medical Surgery, LLC for more than 3 years of management services totaling $13 million — one of numerous retroactive agreements proposed by current and former Meridian executives and approved by the hospital authority Board after 2017.
JUNE 2023 - Overpayments to Meridian and Cantu Breaks Local News
In an article published in the Bakersfield Californian, Kern Medical Center healthcare workers and their union allege that KCHA has paid millions to Meridian Healthcare Partners and Cantu Management Group for unauthorized and retroactively authorized consulting fees. “Service Employees International Union Local 521 accuses the Kern County Hospital Authority of overpaying two private consulting firms by some $23 million during the last four years, then taking steps afterward to shield the payments from public scrutiny.”
JUNE 25, 2023
In a Bakersfield Californian article, Kern Medical Center healthcare workers and their union allege that KCHA has paid millions to Meridian Healthcare Partners and Cantu Management Group in unauthorized consulting fees that were retroactively approved by the KCHA Board. (*17)
JULY 2023
KCHA hires Scott Thygerson, Andrew Cantu, and Meridian executive Renee Villanueva as direct employees to continue managing the hospital authority and KMC. (*15)
AUGUST 2023 - Meridian Contract Is Terminated
The KCHA Board of Governors terminates its agreement with Meridian — in a deal purportedly influenced by Meridian’s Vice President, serving as KCHA’s CEO that pays Meridian $850,000 in termination fees. KCHA paid Meridian close to double or more than double the maximum payable allowed by Meridian’s contract each year between 2017 and 2021.
(*8) - See section 6.2 (Management by Board), 6.4 (Officers and Other Agents), and 6.6 (Transactions Between the Company and the Member or a Manager) of the Operating Agreement for the Kern Medical Surger Center, LLC and Amendments as of November 15, 2023 pg 8-9
