Friday, August 31, 2012

Johnny Ross' Robust Partnership with San Angelo

The Standard Times ran a thank you column from MedHab's CEO Johnny Ross:
As CEO of MedHab, I wanted to reach out to let you know how excited MedHab is to partner with San Angelo to grow our business.

Our incentive package with the city, although robust, places very little risk on San Angelo. The package is designed only to reimburse MedHab for work performed and jobs created. There are no upfront costs to San Angelo so MedHab would have to reach performance levels to receive reimbursements.

Some of the "work performed" is spending money to make MedHab a real business. That includes getting office space, garnering and equipping a production facility and hiring employees. To date Angelo State University served as MedHab's research and development function, the Workforce Commission as its Human Resources Department and City Council as MedHab's non-debt, non-equity capital injector.

Oddly, Ross failed to mention Mayor Alvin New sits on MedHab's board of directors and has a financial conflict of interest.  That seems a material thing to disclose, at least in an arena of robust ethics.

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