profiles in partnership Working in Harmony SantaFe HealthCare, Inc. and Carlton Fields, P.A. By Scott M. Gawlicki S tephen J. deMontmollin, senior vice president and general counsel for Gainesville, Fla.-based SantaFe HealthCare, Inc. and its affiliates, has a unique take on the company’s relationship with Carlton Fields, P .A. “Carlton Fields is our primary law firm Photo by Gregg Pachkowski/Photography 35 for public policy, regulatory affairs and insurance law,” deMontmollin explains. “They know our business well, and they know what to watch out for when it comes to potential changes in Florida’s health care regulations. For us, it’s like having a canary in the coal mine.” Indeed, when you operate in the complex, highly regulated world of health care services, it pays off big-time to have a legal adviser watching your back, 24/7. “A recent Wall Street study asked analysts to identify hidden assets that distinguish successful health care companies. Most pointed to a Michael P. Gallagher (left) and Stephen J. deMontmollin, AvMed Health Plans; company’s ability to avoid regulatory and Rheb Harbison, Carlton Fields, P.A. enforcement, and I couldn’t agree more. We are keenly aware of the need to work applied to an HMO’s critically important Harbison, along with Shareholder Kelly A. in harmony with our regulators, and solvency requirements, would have dealt Cruz-Brown, spearheaded a team that put Carlton Fields plays a major role in helping AvMed a major financial challenge. AvMed together an alternative plan that would us do that,” deMontmollin says. wasn’t opposed to the changes; it just phase in the measures over a five-year A Relationship Begins needed additional time to ensure full period. Doing so, they argued, would allow Carlton Fields serves SantaFe HealthCare’s compliance. AvMed to remain in compliance with three principal affiliates—AvMed Health the state’s solvency requirements while DeMontmollin, a former assistant U.S. Plans, North Central Florida Hospice, Inc. gradually restructuring its assets and attorney for the Southern District of Florida d/b/a Haven Hospice and SantaFe Senior operations. and the state’s first chief inspector general Living, Inc. The relationship began with under Governor Lawton Chiles, called Rheb “The effective date was just too quick,” AvMed, the largest of the three. Harbison, Carlton Fields’ senior government Harbison says. “It wasn’t the legislature’s In 2001, Florida’s legislature was about to lobbyist. “I knew he’d worked as a lobbyist intent to put a Florida HMO in a bad adopt sweeping new health care regulations for the Florida Supreme Court earlier in his situation. Similar measures had been put in recommended by the National Association career. So I figured if he could help an place in other states, so national HMOs were of Insurance Commissioners. The measures, organization like the Florida Supreme Court, already in compliance. But this was a new which changed the way certain assets can be he could probably help us as well.” experience for Florida HMOs like AvMed. 19 APRIL 2007
formal response to the proposed changes. Staying Ahead of the Curve partnership Companies are allowed, for example, to Of course, a new legal partnership was born at a glance review new regulations in draft form and as well, one that would help establish new, respond back with disagreements,” Cruz- more proactive procedures designed to Brown says. “I basically explained how the keep AvMed and other SantaFe HealthCare proposed legislation would affect AvMed SantaFe HealthCare, Inc. affiliates ahead of the regulatory curve. if it went into effect immediately, versus our Cruz-Brown, for example, meets regularly alternative plan. Other issues came up as SantaFe HealthCare, Inc. is a with AvMed, making sure the company is well, including rates and various AvMed community-based, not-for-profit aware of potential regulatory changes and products, so the issue became pretty holding company headquartered in working with its management to determine comprehensive in nature.” Gainesville, Fla. The company has how the changes might affect operations three principal affiliates that cover a going forward. variety of health care services needs throughout Florida, including AvMed Health Plans; North Central Florida Hospice, Inc. d/b/a Haven Hospice; “We focus on being proactive, rather than and SantaFe Senior Living, Inc. reactive…You have to dig deep into their business operations and to determine Michael P . Gallagher is president and chief executive officer, with overall where they want to be three years out.” responsibilities for SantaFe HealthCare, Inc. and its affiliates. Prior to joining SantaFe HealthCare in 2001, Gallagher was senior vice “We focus on being president of finance, treasurer and proactive, rather than CFO for Blue Cross of Northeastern reactive,” she says. “You have Pennsylvania and previously a Kelly Cruz-Brown to understand how they partner with Coopers & Lybrand in (above) and conduct their business. You Columbus, Ohio. Contact Michael at R. Terry Rigsby, have to dig deep into their michael.gallagher@avmed.org . Carlton Fields, P.A. business operations and to Stephen J. deMontmollin is senior determine where they want Photos by Jonathan Allain vice president and general counsel to be three years out. If for SantaFe HealthCare, Inc. and its there’s a proposed change in affiliates, including AvMed Health a state statute, you want to Plans. He is responsible for be sure they’re aware of it, corporate legal affairs, government explain how it will affect relations, internal audit, corporate them and then ask, ‘What risk management and public policy. will have to change to Stephen is also the corporate comply with this?’” compliance officer and corporate Shareholder R. Terry Rigsby privacy officer for all affiliated After three months of lobbying and focuses on affiliate Haven Hospice. In companies. Contact him at discussions, legislators and regulators agreed recent years, Rigsby has been part of a steve.demontmollin@avmed.org . to the AvMed phase-in proposal. Haven Hospice team that successfully applied for and secured regulatory approvals “That was obviously an ideal outcome,” says for new freestanding in-patient hospice Michael P . Gallagher, president and chief So my job was to either kill the legislation or facilities in the Florida cities of Palatka, executive officer for SantaFe HealthCare. amend it to take care of my client.” Lake City and Chiefland; and the expansion “Since that time, AvMed has attained record of a hospice facility in Gainesville, Fla. While Harbison lobbied legislators in levels of capital, liquidity and profitability, Tallahassee, Fla., Cruz-Brown pleaded which have been invested in new products, To establish a freestanding hospice facility, AvMed’s case to Florida’s Office of Insurance wellness and quality initiatives, and service the health care provider must first obtain Regulation. “Part of the process involved excellence programs as AvMed continues to state approval through Florida’s Certificate helping AvMed with its discussions and grow its market share.” of Need (CON) program. Rigsby assisted in 20 www.martindale.com
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