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Palm Drive CEO put on leave
Palm Drive CEO put on leave | PressDemocrat.com | The Press Democrat | Santa Rosa, CA (https://www.pressdemocrat.com/article/20090626/articles/906269889)
By MARTIN ESPINOZA ([email protected])
THE PRESS DEMOCRAT
Published: Friday, June 26, 2009 at 3:00 a.m.
Sebastopol’s Palm Drive Hospital board voted Friday night to put hospital CEO James Russell on paid administrative leave pending an investigation into “all allegations” that have erupted from a deep schism between Russell and the board president, Dan Smith.
The action, taken in a closed session that lasted more than two hours, was announced about 7:30 p.m. when the board began its open meeting with more than two dozen people from the hospital and Sebastopol community in attendance.
The board did not specify the nature of the allegations that would be investigated, but sources said allegations of wrong-doing have been made by both Russell and Smith.
Outside legal counsel has been hired to look into the allegations, said Raoul McDuff, the hospital’s human resources director.
After the meeting, Russell said, “I’m confident that when this is all over I’ll be the CEO of this hospital.”
He added, “I think the record speaks for itself. We had a 2.2 million (dollar) loss the year before I came here. We expect to end this fiscal year with a positive bottom line for the first time in I don’t know how many years.”
Some board members had expressed concern about two contracts that board counsel James Beyers said the staff entered into without competitive bidding or board approval. Beyers said state law requires bidding for contracts above $25,000 unless the board makes a finding of special need.
At a meeting of the hospital board Tuesday, Russell publicly acknowledged his job was in doubt. And he accused board President Dan Smith, a key financial benefactor for the hospital, of “the one-man rule that has prevailed these many years, and which violates the laws established to prevent just such occurrences from happening in the first place.”
Smith since has called the allegation “ludicrous.”
In his statement Tuesday, Russell said one board member had entered his office the week before to tell him “unequivocably that the board wanted my resignation, the statement of which I was to work out.”
The five-member board met in open session after discussing Russell’s future, and director Frank Mayhew said, “I would like to know who was the board member” who went to Russell’s office to deliver the message.
Board member Stephen Murphy said he was the one.
Mayhew asked Murphy if he had consulted with other board members, at which point Smith interrupted the discussion to point out that it was not an item for discussion on the board’s agenda.
Mayhew then asked that the issue be placed on the board’s next meeting.
The current controversy began developing his spring when the hospital received a lower bond rating than expected.
Board members feared they might have to delay the bond sale, and they became concerned over early reports that the 37-bed hospital had spent nearly all of the $931,000 in cash on hand in April.
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Palm Drive CEO put on leave
Palm Drive CEO put on leave | PressDemocrat.com | The Press Democrat | Santa Rosa, CA (https://www.pressdemocrat.com/article/20090626/articles/906269889)
By MARTIN ESPINOZA ([email protected])
THE PRESS DEMOCRAT
Published: Friday, June 26, 2009 at 3:00 a.m.
Sebastopol’s Palm Drive Hospital board voted Friday night to put hospital CEO James Russell on paid administrative leave pending an investigation into “all allegations” that have erupted from a deep schism between Russell and the board president, Dan Smith.
The action, taken in a closed session that lasted more than two hours, was announced about 7:30 p.m. when the board began its open meeting with more than two dozen people from the hospital and Sebastopol community in attendance.
The board did not specify the nature of the allegations that would be investigated, but sources said allegations of wrong-doing have been made by both Russell and Smith.
Outside legal counsel has been hired to look into the allegations, said Raoul McDuff, the hospital’s human resources director.
After the meeting, Russell said, “I’m confident that when this is all over I’ll be the CEO of this hospital.”
He added, “I think the record speaks for itself. We had a 2.2 million (dollar) loss the year before I came here. We expect to end this fiscal year with a positive bottom line for the first time in I don’t know how many years.”
Some board members had expressed concern about two contracts that board counsel James Beyers said the staff entered into without competitive bidding or board approval. Beyers said state law requires bidding for contracts above $25,000 unless the board makes a finding of special need.
At a meeting of the hospital board Tuesday, Russell publicly acknowledged his job was in doubt. And he accused board President Dan Smith, a key financial benefactor for the hospital, of “the one-man rule that has prevailed these many years, and which violates the laws established to prevent just such occurrences from happening in the first place.”
Smith since has called the allegation “ludicrous.”
In his statement Tuesday, Russell said one board member had entered his office the week before to tell him “unequivocably that the board wanted my resignation, the statement of which I was to work out.”
The five-member board met in open session after discussing Russell’s future, and director Frank Mayhew said, “I would like to know who was the board member” who went to Russell’s office to deliver the message.
Board member Stephen Murphy said he was the one.
Mayhew asked Murphy if he had consulted with other board members, at which point Smith interrupted the discussion to point out that it was not an item for discussion on the board’s agenda.
Mayhew then asked that the issue be placed on the board’s next meeting.
The current controversy began developing his spring when the hospital received a lower bond rating than expected.
Board members feared they might have to delay the bond sale, and they became concerned over early reports that the 37-bed hospital had spent nearly all of the $931,000 in cash on hand in April.