Whistleblowers disclose financial misconduct at San Francisco's Laguna Honda Hospital

The San Francisco County government meeting held on July 4, 2025, featured significant discussions regarding the management and oversight of the Laguna Honda Hospital's patient gift fund. The meeting began with public comments from whistleblowers and concerned citizens who raised serious allegations about financial mismanagement and lack of accountability within the hospital administration.

Dr. Derek Kerr, a whistleblower who served at Laguna Honda for 21 years, detailed the findings of a recent audit that revealed $350,000 had been misappropriated from the patient gift fund. He emphasized that the funds, which were intended for patient amenities, had been improperly allocated to staff accounts, with 80% of the money in those accounts belonging to patients. Dr. Kerr criticized the hospital's administration for ignoring established policies and for retaliating against those who reported these issues.

Another speaker, Patrick Monette Shaw, expressed his shock at the responses from city staff regarding the audit discrepancies. He highlighted that the audit team was unable to determine the causes of financial discrepancies and criticized the Health Commission for not adequately discussing the audit findings. Shaw pointed out that the audit report had not been publicly addressed in full by the Health Commission, raising concerns about transparency and accountability.

The discussions underscored a broader issue of whistleblower protection within the city, with speakers asserting that the city’s whistleblower program fails to safeguard those who report misconduct by high-level executives. The meeting concluded with calls for further investigation into the financial practices at Laguna Honda and a demand for greater accountability from the hospital's administration.

Overall, the meeting revealed deep concerns about financial oversight at Laguna Honda Hospital and the treatment of whistleblowers, prompting calls for reform and increased scrutiny of hospital management practices.