Memorial Board Ousted, $1 Million Severance Still Up In The Air

The Colorado Springs City Council ousted the Memorial Hospital Board of Trustees Wednesday, but questions remain about whether outgoing Memorial CEO Larry McEvoy will still get the $1.15 million severance package that the board approved.

City Council gave Memorial board members a 5 p.m. deadline to resign or be removed. One board member turned in a letter of resignation, but seven others said in a statement, “To step down voluntarily is to concede that politics is more important than doing the right thing or making tough decisions.”

The statement went on to say of the severance package, “Despite the public outcry over our latest decision, we remain convinced it was fair and appropriate.”

Council member Tim Leigh said it’s still not clear if the agreement between McAvoy and the former board is legally binding.

“We decided to put the severance package on hold for two weeks to get really good, deep legal advice,” said Leigh.

Leigh and several other council members told KRDO Newschannel 13 that they’ve received countless letters and phone calls from people upset about McEvoy’s payout. They said many came from Memorial employees.

“I think there’s a great sense of betrayal,” said Leigh. “When you have slashed budgets, the call for cutting back everything from paper supplies to plastic forks, no holiday dinners; and then the CEO tries to get away with what many feel is an outrageous compensation package.”

“I had letter after letter saying, ‘I can’t order the full amount of my basic supplies,'” said council woman Angela Dougan.

City council will select a new board of trustees on Friday morning. Leigh said 25 to 35 people have already shown interest.

“Really high caliber citizens who volunteered to step in and help during the transition,” said Leigh.