This is part three in a series of stories regarding the deterioration in San Bernardino County-owned Arrowhead Regional Medical Center (ARMC).

So far we have covered the degradation of the Emergency and Surgery Departments.

Now let’s take a look at overall management.

Serious issues centering around Dr. Dev GnanaDev, Medical Director, have emerged that may lead to GnanaDev’s ultimate departure.

GnanaDev is also immediate past President of the California Medical Association (CMA).

Some of the serious issues raised are as follows.

1.) The ARMC Medical Director and/or associates are maintaining privileges and other responsibilities at other local medical facilities. The question of dedication, loyalty, and conflicts of interest abound.

2.) The ARMC Medical Director and associates spend minimal time in the facility leading to questions of inadequate management and oversight.

3.) The ARMC Medical Director and associates engage in political activity at the Board of Supervisors level. A significant presence by Dr. Guillermo Valenzuela, Chief of OB-GYN in the area of political contributions is visible in public records.

4.) GnanaDev is reported to have boasted on many occasions in the past that he controls three votes on the Board of Supervisors.

5.) The quality assurance area is under pressure to contain serious incidents of medical malpractice.

6.) Morale in the professional nursing staff has also been damaged.

Of critical importance is the finance structure of the facility.

ARMC, like it’s predecessor San Bernardino County Medical Center is established under what is known as an “Enterprise Fund” within county government.

In other words ARMC is suppose to operate like a stand-a-lone hospital separate from county finances and in particular the “County General Fund”.

However what has happened over the past several years is questionable and troublesome. The county has dug its tentacles into the financial operation of the medical center. Rather than operate ARMC independently and have the “Enterprise Fund” contribute money back to the “County General Fund” when available, county management has instead forced ARMC to utilize county services while building in charges to ARMC for the services provided.

It’s a slick way of forcing ARMC to subsidize “General Fund” departments, especially purchasing.

The purchasing aspect of ARMC is described as a mess. Why would a “Level -1″ Trauma Center utilize the “Red-Tape” bureaucracy of the county purchasing department instead of the facility employing buyers familiar with the health care field. Having county purchasing involved in ARMC procurement increase costs to the facility.

In the area of “Specialty” medical group contracting, GnanaDev wields a sharp knife. As mentioned previously in this series, any sign of disloyalty by any physician who runs a contracted specialty group is subject to the wrath of GnanaDev. The ending result is usually non-renewal or cancellation of the medical groups contract.

Quality of care or pricing is never the controlling factor or concern.

Sources also tell InlandPolitics the level of ineffectiveness of ARMC executive management (non-medical) is no better than mediocre, with no ability existing to keep GnanaDev in check.

Combine the above with major billing snafu’s affecting accounts receivable and you have a facility in desperate need of a turn around.

County Supervisors need to get their arms around this situation sooner rather than later.