|  | Published Thursday, March 22, 2001
Allina's spending on consultants, gifts
Minnesota Attorney General Mike Hatch alleges that Allina Health System has spent excessive amounts on entertainment, consultants and gifts. His office's review of
Allina receipts shows these expenditures in 1998 and 1999.
Entertainment and meetings: $550,000
Examples:
LaQuinta Resort and Club, California: $50,000 for 11 Medica employees and seven spouses to attend three-day sales meeting in March 1999. The expenses included $16,655 for golf (including $2,000 for golf lessons), $2,400 for "Mystery Canyon jeep tour"; $1,700 in spa charges; $137 per-person-dinners.
Radisson Arrowwood Resort, Alexandria, Minn.: $27,700 for four-day retreat in September 1999. The expenses included golf, food, liquor and $2,500 for a 14-member orchestra.
Company party: $53,000 in September 1999. The expenses included $10,000 for a laser-light show.
Minneapolis Golf Club: Medica paid about $30,000 for an event in August 1999. The expenses included $1,400 on liquor "and, not necessarily related, another $275 was charged for a damaged golf cart," the court filing said.
The Pines: In March 1999, Allina paid $2,550 for 50 rounds of golf charged by Dr. K. James Ehlen, then president of
Allina. It was billed to "systems administration," auditors said.
Target Center: In April 1999, Target Center billed Medica $167,000 for a suite.
Timberwolves: In April 1999, Allina paid $7,200 for Timberwolves basketball tickets.
Consulting fees: $19,850,000
Examples:
Medica paid expenses for Karen Vigil, an out-of-state consultant. They included maid service, cable bills and shower curtains connected to her stays at a Twin Cities condominium. Medica also paid $800 per month for a "luxury sports utility vehicle" and $2,800 for valet parking and car washes at the Minneapolis-St. Paul International Airport while she was out of the state.
$2.24 million paid to Spencer, Shenk, Capers & Associates, a California image consulting firm.
$182,861 paid to Fischer and Partners, Marina Del Rey, Calif., for services including efficient ways to conduct meetings and communications training.
Gifts and gift certificates: $306,300
Gift denominations ranged from $25 to $700.
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