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Leigh: $1M payout an ‘egregious fleecing’ of citizens

April 27th, 2012, 8:54 am · 18 Comments · posted by

Tim Leigh

City Councilman Tim Leigh say’s Memorial’s Board of Trustees should hit the door just like CEO Larry McEvoy.

Leigh is the latest council member to call for the board’s ouster over its decision to give McEvoy a $1 million payout, three times more than McEvoy’s existing employment agreement spelled out.

“This is an egregious fleecing of the citizens and everyone should be outraged,” he wrote in his electronic newsletter.

Leigh, who has been critical of McEvoy in the past, said his criticism landed him in trouble with Council President Scott Hente before.

“Months ago, I asked for McEvoy and his senior leaders to be placed on administrative leave and called for an investigation into some of the real estate dealings at the hospital.  Those statements caused the council President to ask for my censure at a minimum, while he contemplated my recall and I’m sure I’ll be taken out to the wood-shed again for pointing out the obvious,” he wrote.

Here’s the full text of Leigh’s electronic newsletter:

I had surgery Tuesday afternoon and have been mostly in a drug induced fairy land since and therefore out of the game.  And while I’ve been advised to minimize the use of my strong typing arm, I’m so outraged by the action of the Memorial Hospital Board of Trustees and my Councilor contemporaries on the McEvoy issue, I had to weigh-in.

McEvoy has to go so does the Board of Trustees.

City Council ceded its control of the MHS operations to the MHS Board in August 2010 by memo.  [By the way, that Council included President Hente and Pro-Tem Martin.]  With that action, “as long as the MHS Board operates within its annual budget” Council exercises no control over that board.  The critical language is “as long as MHS acts within its budget”.  McEvoy’s newly announced Exit Bonus was not part of the annual appropriation budget approved by City Council.  Therefore, I’m not sure the MHS Board of Trustees can offer an Exit Bonus to McEvoy legally.  And, by the way, this is not severance (it’s an “Exit Bonus” because McEvoy wasn’t fired and didn’t quit).  He was settled.

I have received dozens of emails and phone calls regarding the Exit Bonus.  Here are a couple of quotes from employees.

“I am very upset that none of the Memorial Employees including myself (with 17 years of service and outstanding performance evaluations) will receive a pay increase this year and yet he gets a cool million – not quite fair.  I am also frustrated because all this time he has talked about “sticking it out” and not leaving; “we are a team” and there he goes.”

.  .  .  “I’ve never seen moral so bad”.  .  .  McEvoy got a pay raise last month over $100,000 and now is leaving plus his freaking out the door bonus. .  .  .  He has his retirement in the bank while the rest of us assholes loose ours.”

Months ago, I asked for McEvoy and his senior leaders to be placed on administrative leave and called for an investigation into some of the real estate dealings at the hospital.  Those statements caused the council President to ask for my censure at a minimum, while he contemplated my recall and I’m sure I’ll be taken out to the wood-shed again for pointing out the obvious.  This is an egregious fleecing of the citizens and everyone should be outraged.

If any good comes of this, it’s that it reminds us why we need to complete the lease with UCH with haste.  We need to transfer the power of operations to folks who enjoy the skills to properly manage a $700,000,000 enterprise on behalf of the citizens.    And, thankfully we have a capable City Attorney (Melcher) and very capable interim CEO (CFO Scialdone) who are very able to lead us through this tumultuous time.

As it is, MHS is still city owned and your voice counts.  Contact your City Councilor and stop the fleecing.

Posted in: Boards and CommissionsBudgetCity CouncilCity employeesHealth carePolitics
 
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