Tribal Council OKs Shasta agreement in special meeting

By Dean Rhodes

Smoke Signals editor

Tribal Council approved two pressing items during a special meeting held on Wednesday, Nov. 2.

Tribal Council approved an agreement with Redmond-based Shasta Administrative Services, a third-party administrator for health care services, regarding a $350,000 capital contribution to the company using the Tribe’s line of credit that will eventually be paid back. Tribal Council approved making the contribution during its Oct. 12 meeting.

The loan will help Shasta address cash flow issues stemming from system upgrades and litigation expenses, a background statement said.

In return, Shasta agreed to release the Tribe and its entities from any claims Shasta or its parent company, Lamatsin LLC, have against the Tribal entities arising out of a lawsuit filed by QualiCenters Salem LLC against Shasta and First Choice Health Network.

QualiCenters Salem is owned by Waltham, Mass.-based Fresenius Medical Care North America. Fresenius, founded in 1996, specializes in the care of people suffering from chronic renal disease.

The lawsuit, filed in the U.S. District Court in Oregon, alleges Shasta and First Choice have “regularly failed and refused to fulfill their contractual obligations” in paying QualiCenters Salem network rates for the treatment of a patient who worked at Spirit Mountain Casino. It is seeking approximately $1.5 million for past billing and payments for services it provided for the patient.

Shasta, however, asserts it is the payor of last resort and QualiCenters Salem failed to bill Medicare first before attempting to collect from Shasta.

The Tribe has co-owned Shasta Administrative Services since November 2012 in partnership with Hawaii-Western Management Group Inc. of Honolulu, Hawaii.

Lamatsin is a partnership between the Tribe's Huyhuy LLC -- Chinook for “to do business with or trade with” -- and Hawaii-Western Management Group. Huyhuy owns 51 percent of Lamatsin and Hawaii-Western owns the other 49 percent.

“The specific terms of the release, working capital, as well as other Tribal contributions, are set forth in a settlement agreement between the Tribe, Shasta, Lamatsin LLC and Huyhuy LLC. The Tribal Council, in consultation with the Tribal Attorney’s Office, has reviewed the terms of the settlement agreement and believes it is in the Tribe’s best interest to execute the agreement,” the background statement added.

Shasta employs approximately 60 people and makes about $17 million in annual revenues, according to the website Datanyze.

The other pressing item involved paying the Tribe’s $30,000 annual dues to the National Congress of American Indians and appointing Tribal Council Secretary Michael Langley as the Tribe’s principal delegate to the organization.

Langley and Tribal Council member Denise Harvey are currently attending NCAI’s 79^th annual convention being held in Sacramento, Calif.