Whistle-blower claims state official took trips, favors

Wednesday, June 18, 2003 | 9:44 a.m.

CARSON CITY -- A whistle-blower's complaint filed with the state Personnel Department accuses the head of the state employees health insurance program of accepting trips and favors from the private companies that have contracts with the state.

The board of directors of the State Public Employees Benefits Program decided Monday there was insufficient reason to discipline the program's executive director, Forrest " Woody" Thorne.

Details of the allegations against Thorne are included in the complaint by Patty Raphael, who brought the charges in March. The governor's office also ordered the state Division of Investigations to look into the charges.

Raphael has been on administrative leave with pay since March from the benefits program where she worked as an analyst. Her complaint was released Tuesday by the Personnel Department at the request of the news media.

She said Thorne and his executive staff took an all-expenses-paid trip to San Antonio, Texas, paid for by Benefit Planners Inc., the firm that has the contract to pay the bills for the system. She said it occurred April 19-21, 2001, and that Thorne was accompanied by two staff members. In addition, she said, they received gifts of clothing.

In March 2002 Catalyst RX, a company that has a contract with the system, paid for a weekend birthday party in Minden for Donna Lopez, an executive with the state system, she said.

Raphael said there have been numerous dinners and lunches paid by contractors, and Thorne has made sexual comments to her and other staff members.

Raphael said the executive staff has shown preference to both contractors by refusing to enforce performance penalties against them.

Thorne, who is paid $102,000 a year, runs the 50,000-member system that will cost the state close to $500 million over the next two years. Thorne has refused to comment on the case, saying it is a personnel matter.

The board of directors conducted six hours of closed personnel meetings over two days, going through these and other allegations against Thorne, who was represented by an attorney.

Board member Randall Kirner said the evidence presented about the misdeeds was inconclusive and that there were inconsistencies in the evidence. Board member Bill Anderson said he had concerns about the work environment in the office and the "external relationship" with consultants and private companies.

The board directed Thorne to write a letter of apology to his workers and also to draw up a code of conduct in dealing with private contractors.

Board member Myla Florence said the information was "not substantiated," and that Thorne's professional competence is not in question. She suggested the issues could have been worked out in a closed personnel session.