SouthCentral Foundation and Dr. Eby and the Doctors Gottlieb

Dr. Doug Eby and Kevin and Katherine Gottlieb have been at the helm of the SouthCentral Foundation for many years.

From SouthCentral's Website:

"Southcentral Foundation is an Alaska Native-owned, nonprofit health care organization serving nearly 65,000 Alaska Native and American Indian people living in Anchorage, Matanuska-Susitna Valley and 55 rural villages in the Anchorage Service unit. 

Southcentral Foundation’s first compact agreement, per Public Law 92-638 Bureau of Indian Affairs Alaska Area Native Health Service, began in 1984. The compact agreement provided dentistry, optometry, community health representatives and injury control services. A funding request to provide substance abuse treatment service was added in 1987.

Gradually, Southcentral Foundation increased its compact agreement capacity within the Anchorage Service Unit so that by late 1994 it was administering nearly half the primary care services for Alaska Native people.

The Alaska Native Medical Center opened its doors in May 1997. Earlier that year, Congress had passed Public Law 105-83, which included a section that enabled Alaska Native people to obtain ownership and management of all Alaska Native health care services.

In 1998, Southcentral Foundation completed the assumption of ownership and management of primary care and other programs located in the Anchorage Native Primary Care Center. "

https://projects.propublica.org/nonprofits/organizations/920086076

^ Here is a link to SCF's tax returns going back many years.


BOMBSHELL - check out the 2011 return!!!!  Why in the world were all the executives getting extra money that year??  They were already well compensated and yet for some reason, in 2011, four executives (Dr. Eby, the Gottliebs, and Ronald Olson, the VP of Finance) each received about 900K (some a bit more; some a bit less) in compensation while Ileen Sylvester, the VP of Operations, received $726,093.

Historical compensation for the Gottliebs and Doug Eby.  They have consistently been the top earners at SouthCentral for almost two decades:

2000
Kevin Gottlieb "Chief of Staff"  $217,077 plus 15, 195
Doug Eby VP Medical Services $201,920 plus 14,134

2001
Kevin Gottlieb "Chief of Staff" $282, 256 plus 21, 699
Doug Eby VP - $285,449 plus 26,033

2002
Kevin Gottlieb - VP/Chief of Staff - $292,857 plus 22,713
Doug Eby - VP - $298,639 plus 27,065

2003:
Kevin Gottlieb - VP - $301,667 plus 22,363
Doug Eby - VP - $326,200 plus 26,905

2004:
Doug Eby - VP Medical Services - $351, 578 plus 28, 021
Kevin Gottlieb - VP/Chief of Staff - $323,346 plus 23,471

2005:
Katherine Gottlieb (first time she shows up on tax return) Pres/CEO - $385,593 plus 26,937
Kevin Gottlieb - VP/Chief of Staff $457,169 plus 27,714
Doug Eby: $380,956 plus 33,869

*Also on this tax return is a cost of $357,980 to Nana Mgmt Catering Service for "Catering & Janitorial"

2006:
Katherine Gottlieb - Pres/CEO - $394,470 plus 26,574
Kevin Gottlieb - VP/Chief of Staff - $445,963 plus 26,986
Doug Eby: $390,662 plus 34,707

2007:
Katherine Gottlieb - $384,606 plus 36,581
Kevin Gottlieb $386,206 plus 20,725
Doug Eby:$406,591 plus 28,435

2008:
Kevin Gottlieb - $396,095 plus 29,533
Katherine Gottlieb - $393,599 plus 28,962
Doug Eby:$415,591 plus 28,435

2009:
Kevin Gottlieb - $452,225 plus 66,715
Katherine Gottlieb - $438,498 plus 66,649
Doug Eby: $451,900 plus 77, 055

2010:
Kevin Gottlieb - $457,993 plus 66,142
Katherine Gottlieb - $458,858 plus 66,085
Doug Eby: $450,214 plus 78,118

2011:
Katherine Gottlieb - $856,836 plus 32,438
Kevin Gottlieb - $890,258 plus 32, 628
Doug Eby - $887,842 plus 49,703

2012:
Katherine Gottlieb - $525,737 plus 33,151
Kevin Gottlieb - $529,142 plus 33,179
Doug Eby - $503,570 plus 41,905

2013:
Katherine Gottlieb - $502,022 plus 33,150
Kevin Gottlieb - $522,037 plus 33,173
Doug Eby - $504,970 plus 40,265

2014:
Katherine Gottlieb - $636, 757 plus 41,955
Doug Eby - $601,664 plus 41,955
Kevin Gottlieb - $596,604 plus 34,213


KATHERINE GOTTLIEB WON A MACARTHUR "Genius" Award in 2004. 

She received $100K for five years (a total of 500K) to do with as she wished. From all of the press reports, it seemed like it would be difficult for Mrs. Gottlieb to decide what to do with this huge amount of money.

BAHAHAHAHAHAH!  Little did everyone know but the Gottliebs are used to handling big amounts of money!!! Many people assume that if you work for a federally funded Alaska Native health care non profit that you would receive a modest salary.  WRONG!  The Gottliebs are highly compensated for their work at SouthCentral Foundation and have been for many years.  In SCF's 2005 tax return, it showed that the Gottliebs received compensation of $897,413 combined. In 2011, they received a combined amount of $1.812 MILLION.

Here are two articles about Gottlieb winning the MacArthur Award.

http://www.ciri.com/alaskas-first-macarthur-fellows-award-recipient-ciri-shareholder-katherine-gottlieb/

"For Gottlieb, the decision on how to use the money has been a deeply personal one.

“When I contribute, it’s between God and me,” she said.

She noted that the main impact the award has had on her personally is that it has affirmed the work done at Southcentral Foundation. “Money is not a big value in my life, but I am blessed with it,” she said.

Gottlieb said in deciding where to make contributions, she looks for programs that multiply and expand. She also looks for those with low administrative costs. As an example, she cited the major contributions she has she made to the SCF Wellness Center."

http://www.indianz.com/boardx/topic.asp?TOPIC_ID=14743

From the above ADN article:

"Katherine Gottlieb, Alaska's bona fide creative whiz, is tackling a tough test on money and ideas and herself. 

The challenge: How to spend a half-million bucks. 

Sound like a blast? Think of this. She wants to put the money to good use. Really good use. She wants to help starving children and villagers with no jobs. And not only that, she wants the money to grow into even bigger and better things. Her ideas aren't yet jelled, but she's getting there.

All of this has been weighing on her mind since September, when she became Alaska's first MacArthur Fellow. The prestigious award brings her $500,000 over five years, no strings attached.

Once they are picked, the foundation asks for no reports, no proof that the money helped them. Some pay their debts. Some quit their day jobs.
The fellowships are commonly called genius awards but that's too limiting, Socolow said.

She is married to Southcentral Foundation's chief of staff, Kevin Gottlieb, who started there as a dentist. He has advised her not to rush into anything with the award."



Reading this article in hindsight, it is laughable.  Kevin advises Katherine not to rush into anything with the award.  So ridiculous.  These people make a fortune from SCF and they are experts at handling large amounts of money. "She wants to put the money to good use.  Really good use." "She looks for programs with low administrative costs." It is too bad that she and Kevin and the other top executives at SCF seem to think that one best use of our federal health care dollars is paying themselves exorbitant salaries.

So, what did Ms. Gottlieb use the MacArthur money for?  She used some of the award money to help found The Wellness Center at SCF - a health club plus - which is open to employees of SCF, ANTHC and their owner-customers.  How nice for all the SCF employees to have their own health club!

https://www.southcentralfoundation.com/wp-content/uploads/2017/05/5.3.17-Anch-exercise-class-and-descriptions-May.pdf


ALL OF THE DIRECTORS OF THE SOUTHCENTRAL FOUNDATION (a non profit which is primarily funded with gov't $$) ARE APPOINTED BY THE BOARD OF CIRI - THE FOR PROFIT REGIONAL NATIVE CORP.

https://www.commerce.alaska.gov/CBP/Main/Document/Corp/?r=22068&v=80518&d=180023


WHERE IS THE OVERSIGHT OF THESE NON PROFITS WHICH GET HUNDREDS OF MILLIONS OF DOLLARS OF FEDERAL TAX MONEY EACH YEAR?

Why doesn't CIRI give more money to its "family of non profits"?

WHAT IS THE INCENTIVE FOR ANY OF THESE FOLKS TO SAVE money?

Why aren't these organizations required to share meeting minutes and agendas?

WHY IN THE WORLD DID THE SCF EXECUTIVES GET WHAT APPEAR TO BE MASSIVE BONUSES IN 2011?

Alaska Native Health & Welfare Non Profits (ANTHC and KANA and SCF and CITC) and Executive Compensation

Andrew Paul Teuber, Jr. is Chairman of the Board of the Alaska Native Tribal Health Consortium and he is the President and CEO of the Kodiak Area Native Association.  He holds both of these positions simultaneously.

These two organizations are non profits which provide health care services to Native Alaskans.  They are funded primarily with federal money.

Why is Mr. Teuber receiving almost $1.3 MILLION in compensation yearly (according to these entities' most recent tax returns) from these non profits?

Here is the most recent tax return for ANTHC:

http://990s.foundationcenter.org/990_pdf_archive/920/920162721/920162721_201509_990.pdf

Mr. Teuber's compensation is 665K.  It used to be closer to 122K (see ADN story below about the recent lawsuit.)

Here is how much this non profit is paying its top employees:

Andrew Teuber - Chairman - $665,000
Roald Helgesen - CEO - $546,000
Garvin Federenko - CFO - $693,000
Steven Weaver - Senior Dir. of Environment - $693,000
Shauna Hegna - Chief Admin Officer - $218,000
Nacole Heslep - General Counsel - $592,000 (and she gets paid this despite the fact that the non profit also paid a big Juneau law firm - Sonosky Chambers a total of $1.77 million in legal fees)
Wiliam Betts - Neurosurgeon - $1.3 MILLION
Greg Thomson - Orthopod - $700,000
Charles Hightower - Orthopod - $713,000
Jeff Parker - Orthopod - $647,000
contract Dr. Marius Maxwell - $920,866

Update:  The ANTHC spent $11,742,755 in travel in 2014 (See above tax return - Part IX Functional Expenses; line 17)...Of this $11 MILLION - $10,351,791 was for travel related to program services - likely patient travel - but $1,391,004 ($1.3 million) was travel listed as "management and general expenses."

Here is a note on the above tax return explaining why they sometimes pay for First Class travel for their officials: 

FORM 990, SCHEDULE J, PART I, FIRST CLASS TRAVEL AUTHORIZING ALLOWS FOR THE UPGRADE IF THE NECESSARY SCHEDULES TO / FROM ANCHORAGE ARE OTHERWISE LINE 1A FULL THE COST OFTHE UPGRADE IS COMPARED TO A FULL FARE / REIMBURSABLE TICKET AS WELL AS POTENTIAL SAVINGS FOR LEAVING RATHER THAN STAYING OVER NIGHT THE SCHEDULED TO/FROM ANCHORAGE FROM THE EAST COAST ARE CHALLENGING TO ALIGN FLIGHTS FOR APPROPRIATE TIMES THE OFFICERS TYPICALLY HAVE AN ADDITIONAL LEG TO REMOTE SITES IN ALASKA

Here is the most recent tax return for KANA:

http://990s.foundationcenter.org/990_pdf_archive/920/920038225/920038225_201509_990.pdf

Mr. Teuber's compensation from KANA is $598K

MATH:  $665k PLUS $598k = $1.263 MILLION.


SouthCentral Foundation has filed a lawsuit against ANTHC:

https://www.adn.com/alaska-news/2017/01/24/southcentral-sues-its-partner-in-tribal-health-over-alleged-power-grab-tied-to-pay-raises/

https://s3.amazonaws.com/arc-wordpress-client-uploads/adn/wp-content/uploads/2017/01/24173602/SCF-complaint-against-ANTHC.pdf

Mr. Teuber formed an Executive Committee at ANTHC and then his compensation quintupled!  Read the details in the ADN article.

Did ANTHC's General Counsel Nacole Heslep help set up the new Exec Committee and the new compensation scheme?  By the way, she herself received compensation of $592,674 in 2014 according to ANTHC's tax return. This seems like an awful lot, especially since ANTHC also paid out $1.77 MILLION to Sonosky Chambers (her old law firm) for "Legal Fees."

Keep in mind:  Most of these costs and salaries etc. are paid for with federal tax dollars. ANTHC is not a private foundation such as the Bill and Melinda Gates Foundation or the Anchorage based Rasmuson Foundation.  And it is not a private for profit corporation like CIRI or ASRC.  It is a native/tribal health care non profit and almost all of its revenue is from the Fed. Gov't.

Guess who is going to be paying the tab for this expensive (albeit important) litigation? A big lawsuit + big law firms = lots of attorney fees. Southcentral is being represented by Dorsey and Whitney in Anchorage AND Munger, Tolles, and Olson, a prestigious huge law firm based in Los Angeles.  ANTHC is being represented by Stoel Reeves out of Anchorage.    The federal taxpayers!!!

FYI: A search of Fed. Campaign donations show that Ms. Heslep donated about 82K to federal candidates and PACs over the last few years.

Mr. Teuber's compensation from KANA also increased significantly in recent years.  See earlier tax returns for KANA - such as this one from 2012 to compare:

http://990s.foundationcenter.org/990_pdf_archive/920/920038225/920038225_201309_990.pdf

SOUTHCENTRAL FOUNDATION (SCF) is also a health care NON PROFIT funded primarily with federal funds. Katherine Gottlieb, the President of SCF and her husband, Kevin Gottlieb, the VP and Chief of Staff of SCF - make a combined $1.3 MILLION from SCF - she makes $678,712 and Kevin makes $630,817. Or at least they did in 2014. Maybe they are making even more now.  There are lots of executives at SCF making HUGE salaries. Check out the tax return:

http://990s.foundationcenter.org/990_pdf_archive/920/920086076/920086076_201509_990.pdf

FYI - The Doctors Gottlieb are not Medical Doctors.  Mrs. Gottlieb has an honorary Phd from APU (it is not clear if she has an actual Phd) and Kevin is a dentist.

Katherine Gottlieb - President/CEO - total compensation 678K
Kevin Gottlieb - VP/Chief of Staff - 630K
Douglas Eby - VP/Medical Services - 643K
Ileen Sylvester - VP - 413K
Natalie Tierney - VP - 488K
Ronald Olson - VP - 583K
Sarah Satow - Dental Services - 467K

According to the ANTHC and KANA tax returns, Mr. Teuber works 65 hours per week for ANTHC and 37.5 hours per week for KANA.  This is 102.5 hours per week or 14.64 hours per day if he works every single day.  If he takes weekends off and just works weekdays, he is working 20.5 hours per day! Wow! How is this humanly possible? Mr. Teuber is also busy with other activities - such as being a Regent for the University of Alaska and a member of the Board of Directors of the Alaska Community Foundation:

https://www.alaska.edu/bor/members/andy-teuber/

http://alaskacf.org/board-of-directors/

Mr. Teuber seems to divide his time between Kodiak, Anchorage, and Sammamish, WA:

https://www.redfin.com/WA/Sammamish/23611-NE-17th-Ct-98074/home/64744473

^ This is a brand new house (worth $1.6 million) that is owned by "Andrew Paul Teuber, Jr."

COOK INLET TRIBAL COUNCIL

This is another non profit dedicated to helping Native Alaskans in the Anchorage/Mat-Su Valley area of Alaska. The focus with CITC is job training, education, and substance abuse help.

This organization is funded almost entirely by "government grants."

http://990s.foundationcenter.org/990_pdf_archive/920/920094184/920094184_201509_990.pdf

This is the executive compensation for the top five earners at CITC according to the latest available tax return:

Gloria O'Neill - President/CEO - $350,882
Amy Fredeen - CFO/Exec VP - $276,977
Kristen English - COO - $266, 215
Lisa Rieger (wife of State Rep Matt Claman) - General Counsel and VP - $240, 334
Patricia Benz - VP of Social Enterprise - $226, 797


Why do these NON PROFIT executives need so much compensation? Shouldn't more money be directed towards ACTUAL health and welfare services?

This is federal (and some state) money!  Why is the State of Alaska and the Federal Government allowing this to happen? Where is the oversight?Where is the transparency?

Why are these non profit executives (who are working at government funded entities which provide social services to people)  making so much more than the federal employee pay scale?

Another question:  There are 13 regional "for profit" Native Corporations in Alaska.  Some of these corporations, like CIRI, ASRC, and Calista, are massive billion-dollar international corporations. Why don't these wealthy entities give more to their affiliated non profits?  Why is the federal gov't funding the native health and welfare non profits almost entirely?  Is this fair?

Interesting article about political contributions from these for profit Regional Corps:

http://www.huffingtonpost.com/2010/10/13/alaskans-standing-together_n_761811.html

Hundreds of thousands was given to this Super PAC.

http://www.mcclatchydc.com/news/politics-government/article24597367.html