Fresno City Councilmembers are calling on state elected officials to audit and investigate reports of seven-figure compensation for Valley Children’s Hospital CEO Todd Suntrapak. Photo by Ben Hensley

Valley Children’s Healthcare trustees shot back at Fresno City Councilmembers Garry Bredefeld and Miguel Arias on Thursday, defending the institution’s financial management and citing the hospital’s continued service at a time when other hospitals are failing.

The statement, given by Valley Children’s Healthcare Board of Trustees Chair Michael Hanson, said the continued public questioning of the hospital’s finances by the councilmembers is intended to garner further publicity for one of their ongoing campaigns.

Arias and Bredefeld requested an investigation by California Attorney General Rob Bonta into the hospital’s financial dealings.

Bredefeld is running for the District 2 seat on the Fresno County Board of Supervisors, with a runoff between Bredefeld and incumbent Steve Brandau taking place in November.

“It is clear that these two local elected officials – including one in the midst of a political campaign – are simply calling for this investigation today to garner further publicity for themselves,” a statement from Hanson reads. “It is disturbing to see elected officials attempt to use children’s healthcare to garner media coverage.”

Brandau was endorsed by Fresno District Attorney Lisa Smittcamp. Bredefeld and Arias both levied heavy criticism on Smittcamp, who sits on the Valley Children’s Hospital/Medical Group board of trustees.

Smittcamp even took to the KMJ radio airwaves this week stating that she had no control over executive or employee compensation packages and, with the hospital being located in Madera County, has no jurisdiction to open an investigation — something that she has also stated as a moot point, as no laws have been broken in the compensation packages of CEO Todd Suntrapak or any of the other 27 executives whose combined pay reached nearly $27 million in 2021.

Additionally, the hospital responded to questions circulating about $124.5 million in offshore accounts raised by Bredefeld and Arias in light of findings in the hospital’s IRS Form 990 from 2021.

“Valley Children’s Healthcare benefits from — like many other hospitals around the nation — holding a diversified global investment portfolio,” a spokesperson from Valley Children’s Hospital told The Business Journal Thursday. “This investment provides earnings to fund strategic and operational investments and ensure long-term financial viability so we can meet our mission to provide healthcare to children in perpetuity.”

The statement went on to explain that the hospital is partnered with an independent investment consulting firm that specializes in healthcare/not-for-profit and endowment investment advice.

The firm also provides the hospital with investment policy management, asset allocation, ongoing due diligence and other financial advising.

Third-party legal due diligence is also carried out for each manager selected, according to the hospital.

Some of these investment entities are technically domiciled in the Cayman Islands or the UK, but in many cases these global investment firms are headquartered right here in the United States,” the statement added. ”A minority of the funds reported under international investments are actual international investment funds.