Washington Blade - January 29, 2009
Amy Cavanaugh

Catania pointedly accused Donald Blanchon, the Clinic's chief executive officer, of demonstrating "gross negligence" during his time at the helm of the health care facility. He also said "an investigation" of recent Clinic decisions could be warranted.

The Clinic announced last month it would close its Northern Virginia location, outsource some programs and lay off 45 employees. Blanchon has said the changes were spurred by declining revenue and an increase in patients coming to the Clinic for uncompensated care.

But during Wednesday's oversight hearing, Catania noted that Blanchon did not ask the Council for help to better navigate the financial woes. Catania said the lack of any request for help was confusing in part because he'd helped secure $6 million for the Clinic during the last four years.

Catania also criticized Blanchon for laying off the 45 employees shortly before Christmas and without severance pay. Among those who were laid off was longtime Clinic staffer Pat Hawkins, who told the Blade that Clinic staffers referred to it as the "Christmas massacre."

Catania seemed to suggest that at least some of the layoffs could have been avoided because Blanchon did not collect thousands of dollars in Medicaid reimbursement funds. Catania also said that Blanchon overestimated the money the Clinic would net through donations and did not address a projected shortfall in a timely manner.

"You knew two weeks before the end of the fiscal year what the numbers were, and you left no choice to the [Clinic] board [but to have cutbacks and layoffs]," Catania told Blanchon at the hearing. "That's gross negligence not to consult the board and not the work of an executive director who should continue in that position."

D.C. Council member Jim Graham (D-Ward 1), a former Clinic executive director, attended part of the roundtable and said he has "remained silent about what has happened at the Clinic in the last 10 years," since he left, but noted that "it's finally time to say something."

Graham said that Blanchon "has severed relationships [between Clinic and Council leaders] that were built over several decades."

Blanchon, who was not allowed an opportunity to fully address much of the criticism that was leveled Wednesday, said in his opening statement that the Clinic "is facing two unrelenting pressures from the economic recession."

"First, we are caring for more patients - almost 10,200 - at the start of 2009 - than any time in our 35-year history," he said. "Second, our major revenue sources - government funds and private donations - have declined in recent years. Left unaddressed, these two realities would threaten the Clinic's very existence."

Blanchon stressed the Clinic remains committed to serving gay patients and fighting the spread of HIV/AIDS. About 10 Clinic patients also praised the Clinic's work locally and described how they've benefited.

Catania, however, recessed the roundtable at the end of Wednesday's hearing so that he could obtain more information about the Clinic and its recent activities. He said that the situation could be "taken to the level of an investigation."

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