Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental
health care each year for eligible patients. Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded. One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest. Does Ms. Caldwell have a conflict of interest?
Ms. Caldwell has a classic textbook conflict of interest. You cannot be the state official responsible for awarding contracts AND the director of a company that owns one of the facilities bidding for those contracts. The $20,000 is a quid pro quo – a position awarded with compensation with the hope of gaining an edge in the state agency's award of contracts.
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