CEO 82-38 -- July 1, 1982

CONFLICT OF INTEREST

SCHOOL DISTRICT PHYSICIAN CONTRACTING WITH NONPROFIT ORGANIZATION TO PROVIDE MEDICAL SERVICES TO STUDENTS

To: Dr. Richard J. Boothby, School Physician, Duval County School System

SUMMARY:

A prohibited conflict of interest would be created were the school physician for a school district to contract with a nonprofit organization to provide medical services to students within the district. A public employee is prohibited by Section 112.313(7), Florida Statutes, from having any employment or contractual relationship with a business entity which is doing business with his agency. A nonprofit organization is a "business entity." See CEO 82-9. Here, the school physician is in a position to advise the district concerning the services offered by the nonprofit organization, as well as the medical services he would provide to students within the district.

QUESTION:

Would a prohibited conflict of interest be created were you, the school physician for a school district, to contract with a nonprofit organization to provide medical services to students within the district?

Your question is answered in the affirmative.

In your letter of inquiry you advise that you are employed on a part-time basis by the Duval County School System as School Physician. You also advise that you wish to provide medical services for selected exceptional students one day per week by a separate contract with a nonprofit organization.

In a telephone conversation with our staff, you advised that as School Physician you serve as the administrative assistant to the Superintendent of Schools regarding medical affairs and are responsible for directing medical programs for the District in an administrative capacity and serving as liaison between the School Board and the local medical community. In addition, you advised that you are interested in contracting with a nonprofit organization as a pediatrician to do evaluation physicals on exceptional students. The organization, which has been created by the Florida Medical Association, has contracted with the School District to provide medical services needed by the District. Although as School Physician you have no direct responsibility over the services provided to the District by the organization, you have been asked in the past to advise the District concerning the contract between the organization and the District from a medical point of view and concerning the various medical services provided through the organization.

The Code of Ethics for Public Officers and Employees provides in relevant part:

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP. -- No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he is an officer or employee . . . ; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his private interests and the performance of his public duties or that would impede the full and faithful discharge of his public duties. [Section 112.313(7)(a), Florida Statutes (1981)]

This provision prohibits a public employee from having any employment or contractual relationship with a business entity which is doing business with his agency. We previously have advised that a nonprofit organization is a "business entity" for purposes of the Code of Ethics. See CEO 82-9.

If you were to undertake to provide these services, you would have a contractual relationship with a business entity which is doing business with your agency, the School District, by virtue of the contract between the organization and the District. Although you do not have direct responsibility over the services provided to the District through the organization, you have provided advice to the District concerning those services and concerning the contract between the organization and the District. Presumably, you are in a position to offer similar advice to the District concerning the services you would provide as a pediatrician.

Accordingly, we find that a prohibited conflict of interest would be created were you to contract with the nonprofit organization to provide medical services to students within the District.