One Simple Change Can Make All the Difference for South Peninsula Hospital

Written By Tiffanie Story

When you begin to peel back the layers of South Peninsula Hospital, the picture becomes increasingly complex. Like the onion found in every gourmet kitchen, it can bring tears—but for very different reasons. Here is a snapshot of how South Peninsula Hospital is structured. It is not an exhaustive analysis, but rather a thirty-thousand-foot view of the institution that serves our community:

  • Land Ownership: Primarily the City of Homer

  • Buildings: Kenai Peninsula Borough

  • Major Equipment: Kenai Peninsula Borough

  • Capital Oversight: Kenai Peninsula Borough Assembly, advised by the South Kenai Peninsula Hospital Service Area Board

  • Operations: South Peninsula Hospital, Inc., a private nonprofit corporation organized under Section 501(c)(3)

  • Ultimate Owners: You—the approximately 14,000 residents of the South Kenai Peninsula Hospital Service Area

That last point is the most important.

You own the hospital.

The buildings belong to the public. The capital assets belong to the public. The hospital exists because generations of taxpayers invested in creating and maintaining this community resource.

Yet today, the citizens who own the hospital have no direct voice in selecting the governing board responsible for its day-to-day oversight.

None.

The Operating Board of South Peninsula Hospital, Inc. is self-perpetuating. Vacancies are filled through its own selection process rather than by the voters of the Service Area. While community members may express interest in serving, the ultimate decision rests with the existing board under its current governance structure. Whether one believes the current system works well or not is beside the point. The question is much simpler:

Should the owners of a publicly owned hospital have the right to elect those entrusted with governing it?

I believe the answer is yes.

Democratic accountability does not diminish good governance—it strengthens it. Transparency builds trust. Public confidence grows when citizens know that those making decisions are directly accountable to the people they serve.

Recent events have highlighted why this matters. A meeting of the Operating Board described as an executive session was held without public notice. While the current Operating Agreement may not expressly prohibit such a meeting, it illustrates a broader concern: important decisions affecting a publicly owned hospital can occur without the public even knowing a meeting has taken place.

The issue is larger than any single meeting.

It is about whether the governance of a publicly owned hospital should be conducted in a manner that is as open, accountable, and transparent as possible.

One simple change can help accomplish that.

The accompanying draft resolution proposes that the Operating Board be elected by the voters of the South Kenai Peninsula Hospital Service Area and that the Operating Agreement require public meeting standards consistent with the principles of the Alaska Open Meetings Act.

This proposal is not directed against any individual board member or administrator. It is about improving the governance structure for future generations.

Good governance should never depend solely upon the goodwill of those currently serving. It should be built into the system itself.

If you agree that the owners of South Peninsula Hospital deserve a direct voice in the selection of its governing board, I respectfully ask you to take a few moments to act.

Please email each member of the South Kenai Peninsula Hospital Service Area Board (email addresses below) and ask them to consider the attached draft resolution and recommend these changes to the Kenai Peninsula Borough Assembly. Thoughtful, respectful input from community members can make a meaningful difference. To make participating as easy as possible, we've included a sample letter below that you are welcome to copy, personalize, and send along with the Draft Resolution.

Meaningful reform begins when ordinary citizens speak with one voice.The future governance of our community hospital belongs to all of us. Because ultimately, you are the owner.

Subject LINE:  Please Support an Elected Operating Board for South Peninsula Hospital

Dear Member of the South Kenai Peninsula Hospital Service Area Board,

As a resident and one of the owners of South Peninsula Hospital, I respectfully ask that you consider the attached draft resolution recommending changes to the Operating Agreement between the Kenai Peninsula Borough and South Peninsula Hospital, Inc.

I believe the governance of our publicly owned hospital should reflect the principles of accountability, transparency, and public representation.

Specifically, I ask that you support a recommendation to the Kenai Peninsula Borough Assembly that would:

  • Require members of the South Peninsula Hospital, Inc. Operating Board to be elected by the voters of the South Kenai Peninsula Hospital Service Area.

  • Require the Operating Board to conduct its meetings under public meeting standards consistent with the principles of the Alaska Open Meetings Act, including public notice, agendas, open meetings, and published minutes.

This proposal is not about any individual board member or administrator. It is about strengthening the governance of our community hospital for generations to come.

Please place this matter on a future Service Area Board agenda for public discussion and consideration.

Thank you for your service to our community and for considering this request.

Respectfully,

Resident, South Kenai Peninsula Hospital Service Area

SOUTH KENAI PENINSULA HOSPITAL SERVICE AREA BOARD

RESOLUTION NO. 2026-____

A RESOLUTION OF THE SOUTH KENAI PENINSULA HOSPITAL SERVICE AREA BOARD RECOMMENDING THAT THE KENAI PENINSULA BOROUGH ASSEMBLY AMEND THE OPERATING AGREEMENT WITH SOUTH PENINSULA HOSPITAL, INC. TO PROVIDE FOR AN ELECTED OPERATING BOARD AND TO REQUIRE COMPLIANCE WITH OPEN MEETING REQUIREMENTS

WHEREAS,

South Peninsula Hospital is a public hospital owned by the Kenai Peninsula Borough and held in trust for the benefit of the residents of the South Kenai Peninsula Hospital Service Area; and

WHEREAS,

South Peninsula Hospital, Inc. operates the publicly owned hospital pursuant to an Operating Agreement with the Kenai Peninsula Borough; and

WHEREAS,

The citizens of the South Kenai Peninsula Hospital Service Area have a substantial interest in ensuring that the governance of their publicly owned hospital remains accountable, transparent, and responsive to the community it serves; and

WHEREAS,

The current method of selecting members of the South Peninsula Hospital, Inc. Operating Board is by appointment pursuant to the corporation's governing documents rather than by election of the residents of the Service Area; and

WHEREAS,

The South Kenai Peninsula Hospital Service Area Board believes that direct election of the Operating Board by the qualified voters of the Service Area would strengthen public confidence, increase accountability, and reinforce the principle that governance of a publicly owned hospital should ultimately be answerable to the citizens who own it; and

WHEREAS,

The Service Area Board further believes that all meetings of the South Peninsula Hospital, Inc. Operating Board should be conducted openly, with reasonable public notice, public access, published agendas, approved minutes, and executive sessions limited to those circumstances permitted by law, consistent with the principles embodied in the Alaska Open Meetings Act; and

WHEREAS,

The Kenai Peninsula Borough Assembly possesses the authority to approve amendments to the Operating Agreement between the Borough and South Peninsula Hospital, Inc.;

NOW, THEREFORE, BE IT RESOLVED THAT:

Section 1. The South Kenai Peninsula Hospital Service Area Board respectfully recommends that the Kenai Peninsula Borough Assembly direct the Borough Administration to negotiate amendments to the Operating Agreement with South Peninsula Hospital, Inc. requiring that all members of the South Peninsula Hospital, Inc. Operating Board be elected by the qualified voters residing within the South Kenai Peninsula Hospital Service Area.

Section 2. The proposed amendments should require South Peninsula Hospital, Inc. to amend its Articles of Incorporation and Bylaws as necessary to implement an elected Operating Board.

Section 3. The proposed amendments should require the South Peninsula Hospital, Inc. Operating Board to conduct its meetings in accordance with the principles and requirements of the Alaska Open Meetings Act, including public notice, open meetings, publication of agendas, maintenance of meeting minutes, and limitations on executive sessions, as an express contractual obligation under the Operating Agreement.

Section 4. The proposed amendments should establish an orderly transition from the current method of board selection to an elected Operating Board through staggered terms beginning with the next regular Kenai Peninsula Borough election.

Section 5. The South Kenai Peninsula Hospital Service Area Board respectfully requests that the Kenai Peninsula Borough Mayor and Administration work cooperatively with South Peninsula Hospital, Inc. to develop the necessary contractual amendments and present them to the Kenai Peninsula Borough Assembly for consideration.

Section 6. The Clerk of the South Kenai Peninsula Hospital Service Area Board is directed to transmit a certified copy of this Resolution to:

  • The Kenai Peninsula Borough Mayor;

  • The Kenai Peninsula Borough Assembly;

  • The Borough Attorney;

  • The Board of Directors of South Peninsula Hospital, Inc.; and

  • The Chief Executive Officer of South Peninsula Hospital, Inc.

PASSED AND APPROVED by the South Kenai Peninsula Hospital Service Area Board this _____ day of ______________, 2026.

Chairperson

ATTEST:

Board Clerk

Tiffanie Story
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