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3/3/2011 5:00:00 PM
Hospital CEO Peter Klune given new contract

Marty Bachman

BLYTHE - The Palo Verde Healthcare District Board, by a 4-1 vote, approved a new contract with Palo Verde Hospital CEO Peter Klune at their board meeting on Feb. 23.

The contract went into effect on Feb. 28 and is for a three-year period. Board member Catalina McClain voted against giving Klune the contract.

Klune will enjoy an annual salary of $425,000 as well as $25,000 a year to be placed into a deferred compensation plan. He will be eligible for benefits all other hospital district management employees qualify for including health care.

Klune will receive an employee performance each year and is eligible to receive a raise in his base salary of between 3 and 6 percent annually.

Klune will also be allowed to provide consulting services to other hospitals and healthcare districts as long as it doesn't interfere with his work at Palo Verde Hospital.

Klune will be given reimbursement for the cost of attending national, state and local conferences, and other selected continuing education or degree programs approved by the district, including the cost of registration, housing, travel and subsistence related to these programs.

The hospital CEO will also be provided funds for business travel and business meals, postage, telephone and other miscellaneous costs.

The board may terminate Klune and the agreement only for "serious misconduct that includes a willful breach of the agreement; habitual neglect of duties; entry of a plea of guilty or nolo contendere to a felony or a crime involving moral turpitude; conviction of a crime, whether misdemeanor or felony, which would bring disrespect to the office of CEO or the District; refusal or failure to act in accordance with a specific directive or order of the District Board of Directors; maintaining a conflict of interest after being directed to resolve said conflict by a majority of the District Board of Directors; use of illegal drugs or abuse of legal drugs if job performance is adversely affected; and sexual or other prohibited harassment of a District employee, or physical violence directed at any District employee.

Any other instance of termination will cost the healthcare district Klune's annual $425,000 salary and benefits.

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Reader Comments

Posted: Thursday, October 25, 2012
Article comment by: @ dolores

Would be nice if we could get those answers. Unfortunately we have a couple of candidates that have not set up any kind of forum or agree to debate the other candidates. How are we suppose to get answers if our elected officials will not publicly go on the record? After a while it makes you think that they have something to hide or that they feel that they do not have to answer to the residents of this valley. Either way I find it unacceptable!

Posted: Thursday, October 25, 2012
Article comment by: just me@just me

Thank you for the correction.On the 2009 board members..

Posted: Thursday, October 25, 2012
Article comment by: beverly mays

to just me @ stop the madness
for the short time that I was appointed to board Mr. Klune was already hired and had a contract in place. public records will reveal I never voted for proposed bonuses. Then president Jim Carney publically announced I was not a board member that would assist him in getting his agenda done! Election happened and you the voters elected the board of Mr. Carneys it is election time again so please vote for the candidate of your choice.

Posted: Wednesday, October 24, 2012
Article comment by: Dolores jacksonwilliams

How can a CEO of a relatively small community commands such and outlandish salary. What are creditenials? More so what is he bringing to the table? What has he done to demand such a high salary? Make me understand.

Posted: Wednesday, October 24, 2012
Article comment by: @Just me@ stop the madness

Actually the MEC was around well before the 2009-2010 board.

Posted: Wednesday, October 24, 2012
Article comment by: @ stop the madness

"This agreement is entered into effective as February 28, 2011 (the effective date" between the Palo Verde Health Care District, a government entity, by and through its BOARD Of DIRECTORS (hereinafter referred to as the "District") and PETER KLUNE ( hereinafter referred to as "Employee).

Hospital Chief Executive Officer Agreement
The contract was signed by President JIm Carney on March 8th 2011.

Section 16 letter a
"This agreement supercedes any and all other agreements, either oral or written, or implied by the prior course of conduct between the parties hereto with respect to the employment of Employee by the district and contains all of the covenants and agreements between the parties with respect to the employment of employee by the district. All previous agreements between the district and the Employee are null and void and of no effect.

So why on March 23rd did the board give Klune an 80% (out of 25% for the year) bonus?

I have read the whole contract front to back several times and nowhere does it say that it was a revision. You ask who was on the board. Carney, Carlton and Hudson where all on the board. Sandy's contract with Peter Klune sure was better for the community than Carney's version. Unless you are Peter Klune!

Posted: Wednesday, October 24, 2012
Article comment by: just me@pvvt

People are wrong when they say or think you only protect certain people from certain comments..You are fair in your practice..I appreciate that even tho you have deleted serval of my comment.keep up the good work.

Posted: Wednesday, October 24, 2012
Article comment by: @ just me

In Feb. 2009 the board consisted of:

James Carney, President
Timothy Maley, Vice President
Sandra Hudson, Secretary
Mark Bolliger
Dr. Francisco Tejeda

Posted: Wednesday, October 24, 2012
Article comment by: just me

Site Administrator's note: A portion of this comment has been removed because it violated our Terms of use Agreement.

Posted: Wednesday, October 24, 2012
Article comment by: just me@stop the madness

With all respect to Marty if he chooses not to post the names of the 2009 board members here they are..Hudson, Carney,Carlton,Maley,Then later came Beverly May's.And I believe this board is the very board that let mec sucker them in.Not real sure.But I will vote for C&C

Posted: Wednesday, October 24, 2012
Article comment by: Stop The Madness from happening again

You are talking about this contract that was revised in 2011. Who was on the Board when this contract was first approved in 2009.


THIS AGREEMENT is entered into effective as of the 1st day of October 2009 between
the PALO VERDE HEALTH CARE DISTRICT, a governmental entity, by and through its
Board of Directors (hereinafter referred to as the "District") and PETER KLUNE (hereinafter
referred to as "Mr. Klune").

This contact was signed by:
Sandra Hudson, Secretary
Palo Verde Health Care District

Posted: Tuesday, October 23, 2012
Article comment by: @ all the story tellers

Here is something for everyone in the reader comments section saying that the Sandy Hudson/JIm carney/ rosalie carlton board gave the CEO the new contract. Notice it was voted on FEB 23, 2011. So yes this is JIm and Carney and the "slate he needs" board that actually did it!

Posted: Wednesday, March 16, 2011
Article comment by: zzz babe

The people of blythe are responsible for such irresponsible financial splurging of the elected board . . . afterall you elected them and you thought they were the saviors of the community!!! They were who Senior Carney requested remember to help him get his business done . . . while they campaigned stated they were gona get new doctors equipment etc... well it doesnt take a genius to mathematically figure out that there is not gonna be any money left for the lavish community promises!!!

Posted: Thursday, March 10, 2011
Article comment by: Mel SoCal

palo verde is NOT A HOSPITAL. he is getting paid the salary of a large hospital CEO (say for example, desert regional, USC medical, children's hospital..) - and does palo offer ANY of the services large hospitals offer??

nope.. he is the CEO of an URGENT CARE..

there is a big difference, and the board & people of blythe are blind to realize it.

and it doesn't matter what he takes home after taxes, he gets paid MORE money than is morally acceptable for this type of facility and size of town..

Posted: Wednesday, March 9, 2011
Article comment by: oh really fools

WTF the hospital prior to setting this dudes salary payed an outsource company 500k a month to do the same job. So i think we are saving a little bit of money. And all you folks that say you would take less for the good of the community after being offered this package are lying through there keyboard. And by the way a few people with money have utilized theses facilities many of times..

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