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The Bbde Health Center: a Case Study of Business Ethics

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Submitted By ddragonstein1
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EXECUTIVE SUMMARY:
BBDE is a behavioral health service center founded by Rulan Wilson to serve the mental health needs in an urban western county. The center provides individual and group therapy, inpatient long-term care, psychiatric care and recreational therap. For 20 years, Rulan has been the director and Chief Executive Officer (CEO) of the growing health center. The center currently employs 100 full time employees and generates approximately $11 million in annual revenue. Revenue comes from state block grants (1/2), Medicaid (1/3) and the balance from county government, insurance, fees and small contracts.
The Board of Directors (BoD) is a volunteer board with members from the local community (county commissioner and certified public accountant) as well as individuals with a mental/behavioral health background. The current board members have all served for more than 10 years. The BBDE accounting staff includes a Chief Financial Officer (CFO), controller and several clerks. The controller, Don Blake, had only been with the company three months at the time of the case study. Despite the title of controller, Don spends the majority of his time preparing Medicaid reports instead of focusing on supervising, planning, decision making, and implementing strategy.
In Don’s short tenure with the organization, it has been brought to his attention that proper guidelines are not followed for travel expense reimbursements and the Board of Directors are part of the problem with the unethical practices. It is also apparent that the center’s CEO has lost sight of the organization’s mission to provide behavioral health services to individuals in need and is more focused on the benefits to him and his

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...ISSN 1940-204X The BBDE Health Center: A Case Study of Business Ethics Jason C. Porter University of Idaho Darryl J. Woolley University of Idaho BACKGROUND BBDE is a behavioral health center that acts as sole-source provider for an urban western county. As a sole-source provider, it contracts with the county government to provide mental health and substance abuse counseling. It is a nonprofit corporation. Rulan Wilson, the center’s director, founded the center about 20 years ago and has been the director and CEO since its founding. He is highly respected in the community and in the industry. The center has approximately 100 full-time employees and revenue of around $11 million. Nearly half of the revenue comes in the form of block grants from the state. Another third of the revenue is from Medicaid. The remaining revenue comes from the county government, insurance, patient fees, and a variety of small contracts with several state agencies. The center provides individual and group therapy, inpatient longterm care, psychiatric care, and recreation therapy. BBDE is governed by a volunteer board of directors. The board includes a county commissioner, a local certified public accountant (CPA) who acts as the board’s financial expert, and five individuals with backgrounds in behavioral health and mental health advocacy. Board members serve two-year terms and may serve for multiple terms. The members of the board nominate and select new members as needed. Most of the current...

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