Memorial Hospital Board Given Ultimatum

“And I would ask that the board voluntarily resign. If they do not resign, then I believe the Council needs to remove them.”

So said Colorado Springs City Councilman Merv Bennett on Tuesday evening during a special meeting regarding the future of Memorial Hospital’s board of directors.

After a 90-minute executive session with the city attorney, the Council unanimously decided that the 11-member board should step down or be fired by 5 p.m. Wednesday. Council members Bernie Herpin and Brandy Williams were absent from the meeting. Mayor Steve Bach also was not present.

The Council has been displeased with the board since learning of a $1 million severance package given to Larry McEvoy, the hospital’s outgoing CEO. By law, the board did not have to seek Council approval for the package.

There was applause from the audience, including some Memorial employees, after the vote. Ronald Rains, director of adult critical care services, said the vote should improve morale at the city-owned hospital.

“Many of the staff physicians, nurses and other personnel felt like their voices weren’t being heard by the board,” he said. “This expanded compensation package was a bit of a slap in the face.”

Unresolved issues remain, however. The Council and city attorney will start a two-week review of McEvoy’s severance agreement.

“We need to know what has already been agreed to, what are the legal ramifications, and is there any avenue to either negate it or put it aside,” said Council President Scott Hente.

The Council said Karen Anthony, the lone board member who opposed the severance package, will remain on the board. The Council will select at least four new members to serve until the University Of Colorado Health System assumes ownership of the hospital in September.

The Council plans to select new board members at another special meeting scheduled for 9 a.m. Friday. Council members said they want the new board to have experience in health care administration and focus more on providing services than making a profit.

The Council heard brief public comments during the meeting, mostly from former city officials, who supported the decision to replace the hospital board.