Two principal members of the 36-year-old Howard Brown Health Center ( HBHC ) announced Nov. 4 that the community healthcare provider needs to raise $500,000 over 50 days and an additional $500,000 next year or risk closing its doors.
CEO Jamal Edwards and Board Chair Mark Andrews announced that the Center is also determined to chart a new way forward. In order to do so, HBHC asked the community to participate in a "Lifeline Appeal" by providing direct donations. In addition, the Center is taking steps like the selling of assets, to bring in more money.
HBHC's troubles began in early 2010, when the center announced the ouster of its CEO Michael Cook and CFO Mark Joslyn due to mismanagement of funds. Jamal Edwards, formerly a partner in the law firm of Kirkland & Ellis, took over the job of CEO in April. Edwards has been overseeing a detailed analysis and estimate of the mismanagement in question. As both he and Andrews emphasized, the truth was irrefutable and HBHC was left badly in the hole. The mismanagement amounted to $3 million over the course of three years prior to the end of 2009.
Moving forward, the center's staff and board are taking steps to ensure that such mismanagement does not happen again. One step is to have an outside law firm oversee the restructuring of HBHC, while another is to institute a compliance committee ( already in effect ) . A third step involved applications for new, opening board memberships ( seven new seats ) from the community. Both men also emphasized that key personnel in the leadership are determined to do what it takes to get HBHC back on its feet, foregoing their salaries if necessary.
Asked about the mood at HBHC, Edwards said that the staff had been told of the situation before the press conference and that their commitment to providing care had not changed. Asked how matters had come to this stage, Andrews freely admitted that the Board could have done things differently: "We should have seen more of these problems early on." But he also emphasized that they were committed to moving forward with new controls in place.
In a post-conference interview with WCT, Edwards provided more specifics about what could happen at the Center without the infusion of cash: "We could not pay our staff, would have to cut services, and stop the clinic." He said that the recent overhaul had "stopped the bleeding" but the previous liabilities incurred constituted a big sum of money, and they were being transparent to the community while asking for assistance. Asked about specifics about the mismanagement, Edwards pointed to the center "living beyond our means." For instance, it was providing medical services it could not afford, and took in a couple of leases which proved unwise in the long run. These included the newer office spaces on Broadway; Edwards has already relocated his office to the main Sheridan space. As he put it, "anyone connected to the mismanagement is gone."
As for the reconstitution of the Board, Edwards was clear that some current members may have "had their capacity exceeded" and that those conflicted about working in the new culture would be urged to move on. Asked what qualifying new members would be like, he said that ideally they would be members of the community, used Howard Brown services, and showed a commitment to fundraising, an arena in which the Center had not been aggressive enough.
Both Andrews and Edwards reiterated their commitment to seeing the Center through. Asked why he felt the Center was so important to the community, Edwards responded, "We're at a pivotal moment in our history [ as a community ] . We lack equal rights to marry, greater numbers of our youth are committing suicide in record numbers, and more of us are losing healthcare by the day. Whether you are a drag queen; a gay man; someone recently diagnosed with HIV; a straight personyou can come to Howard Brown and be treated with dignity. At Howard Brown, we're committed to providing quality and culturally competent care to everyone who needs it."
Donations to the Lifeline Appeal may be made directly on the Center's website, www.howardbrown.org . The Center is also urging people to shop more often at The Brown Elephant. Other options are also listed on the website.
Next: Details about HBHC's financial plans.