With nine years of guidance under CEO Tim Egan, Chicago’s Roseland Community Hospital has awarded business to his friends and acquaintances, employees have donated to his political funds and he has appeared in a campaign ad for the state’s comptroller.
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In his close to nine years as Roseland’s president and chief executive, Egan’s political activities and the hospital’s operations have become increasingly entwined: hospital business awarded to friends and associates, employees and contractors making donations to Egan’s campaign funds, at least one fundraiser using the hospital’s name on invitations.
“That looks to me like a pretty flagrant violation of this rule,” said Brunson, who specializes in nonprofits and the tax code and viewed the Mendoza commercial at the request of WTTW/Chicago PBS and ProPublica. “Mr. Egan has an excellent relationship with his board and keeps board members fully apprised of all of Roseland’s major contracts and business developments, often times to seek their advice and approval,” said the spokesperson, Dennis Culloton. “Similarly, the board members are updated on his efforts to establish strong government contacts to support the mission of Roseland Community Hospital.”
“Roseland Hospital plays a critical role in providing healthcare to the underserved communities on Chicago’s South Side, so we asked Tim Egan to attest to the Comptroller’s work in our video spot which ran this fall,” campaign manager Jack Londrigan said in a statement. “We would have never asked Tim to do anything we thought would pose a problem for him or the hospital as we believe his efforts to save and protect the lives of Roseland residents are of the utmost importance.
Culloton, the spokesperson for Roseland and Egan, said neither Egan nor the hospital had been involved in any improper conduct. The lawsuit is pending. That December, that subsidiary of Roseland signed a three-year, $10,000-a-month consulting contract with P2C Healthcare Consulting, a company that had registered with the state just a month earlier. P2C’s manager, Leonard Cannata, has no apparent experience in health care management.
Cannata did not respond to requests for comment. Evans, the board chair, did not respond to questions about the contract.In another instance, Roseland signed a contract with the company American Medical Lab to run the hospital’s in-house lab for five years at an annual cost of $1.5 million. That deal was signed in February 2021. That fall, the company donated $5,000 to one of Egan’s political funds.Culloton also did not respond to questions about the American Medical Lab contract.
Between Egan’s first run for alderman in 2007 and this year, political funds that he chairs have received nearly $100,000 in donations, loans and in-kind contributions from hospital staff and leadership, board members for both hospitals and their respective charitable foundations, and people and businesses who have done work for the hospitals.
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