Whether a public figure or a recognizable organization, scandal and intrigue often follow high visibility.
Shriners Hospital, the charitable organization known for its heartwarming commercials, inspiring patient ambassadors, and associates clad in tall crimson hats, has faced its share of challenges over the years.
A couple of scandals Shriners Hospital has faced include a wrongful termination lawsuit by former employees and accusations of questionable financial dealings.
Read more:
- Alec Cabacungan’s Story: From Shriners Hospital Patient to Commercial Spokesperson
- How Much Do Alec and Kaleb Get Paid for Commercials?
Here, we explain the Shriners Hospital scandals in detail.
The Wrongful Termination Lawsuit of 2021
In November 2021, during the COVID-19 crisis, Shriners Children’s Hospitals implemented a companywide policy requiring that all of its employees be vaccinated.
Employees who chose not to comply with the new requirements were terminated.
Fast forward to December 2023, almost two years after their termination, three former employees filed a wrongful termination lawsuit against Shriners Children’s Hospitals, its agents, and the Executive Commissioner of Texas Health and Human Services.
The former employees accused the non-profit institution, which started in 1922 and became known as “The World’s Greatest Philanthropy,” of violating their right to refuse the vaccine.
The plaintiffs worked at a Galveston, Texas, hospital and filed their claim with the United States District Court for the Southern District of Texas.
Unfortunately for the former Shriners Hospital workers, the district court agreed with the defendants and dismissed all the claims.
In April of 2025, the former Shriners Hospitals employees filed an appeal with the United States Court of Appeals for the Fifth Circuit.
The Fifth Circuit Court agreed with the original judgment, siding with the defendants.
Questionable Financial Dealings Investigation of 2008
In 2008, a three-member committee was formed to investigate questionable financial dealings within the Shriners organization.
The committee was established by the Shriners of North America and the Shriners Hospitals for Children, both owned and operated by Shriners International.
According to the New York Times, the twenty-three-page internal report found that Ralph Semb, Shriners Hospitals’ board chairman, attempted to fire a fundraising executive for refusing to hire a direct mail company he and treasurer Gene Bracewell had recommended.
The committee agreed that the board members violated the organization’s conflict-of-interest policy as well as its code of ethics.
Additionally, the report also found that longtime executives accused the institution of several financial improprieties, such as:
- Leaders knowingly submitting incorrect tax forms to avoid reporting specific benefits as income;
- Blending of charitable and non-charitable assets;
- Missing funds raised for the hospitals.
The panel agreed that the members should be reprimanded for the misconduct.
Unfortunately, the investigative committee was disbanded that same year before they completed their full investigation.
The board decided against any disciplinary action, with Bernard J. Lemieux, head of the joint boards, saying,
“Our organization, of its own volition, commenced many of the actions that ultimately were recommended by the special committee.”
Sources
https://www.fredericknewspost.com/opinion/letter_to_editor/shriners-hospital-ads-dont-tell-the-whole-story/article_831b690c-75ba-5c26-a5b5-03a5a511224d.html
https://law.justia.com/cases/federal/appellate-courts/ca5/24-40436/24-40436-2025-04-02.html
https://news.bloomberglaw.com/litigation/shriners-hospital-beats-worker-covid-vaccine-religious-bias-case
https://www.nytimes.com/2008/07/25/us/25shrine.html
https://philanthropynewsdigest.org/news/internal-report-on-shriners-raises-questions
