, Staff Writer
It was a split decision in the state Senate on Monday night as to the public's right to know about the business decisions made by their public hospitals.Senators unanimously voted to revise state law so that a public hospital official's total compensation is public record. But they also voted to deny citizens the right to know how much a public hospital paid for a medical practice."I think it's a sad day when our citizens are cut off from information about how their institutions are run -- by this body," said state Sen. Ellie Kinnaird, a Carrboro Democrat.Both bills stem from lawsuits filed by newspapers seeking to learn about the financial decisions made by public hospitals. The Charlotte Observer lost a court battle with the Carolinas Healthcare System over total compensation paid to hospital officials. The hospital contended such information, if released, could create a competitive disadvantage with its private competitors.The courts ruled that only the salaries of those officials could be made public, not bonuses or other perks.Press advocates say the court decision has already emboldened other public agencies to deny access to additional compensation paid to governmental officials. State Sen. David Hoyle, a Gaston County Democrat, filed the legislation to clarify the public records law so that can't happen."I believe this bill does what we intended," Hoyle said. "That we, as stockholders and taxpayers in these institutions, have the right to the knowledge of this information."But Hoyle and 37 other senators supported Senate Majority Leader Tony Rand's bill to keep the public from finding out about contracts to purchase medical practices. Rand's legislation came days after the Wilkes Journal Patriot won a lawsuit forcing a local hospital board to disclose that it paid $650,000 for the assets of a local gastroenterologist's practice, and agreed to pay him $750,000 annually."If you want to put your public health system at a competitive disadvantage, you can vote against this bill," said Rand, a Fayetteville Democrat.That was the same argument the public hospital made in the Wilkes County case, though the N.C. Supreme Court ruled the information was not competitive.Both bills require a second vote in the Senate before they can move to the House.
Staff writer Dan Kane can be reached at 829-4861 or dan.kane@newsobserver.com.