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