Chattanooga, Tenn.-based Erlanger Health System fired four top administrators Wednesday, and the health system now intends to dissolve the board of two of its community health centers, according to a Times Free Press report.
Erlanger CEO Kevin Spiegel told the Times Free Press that the decision was made to replace the top managers at the health centers after the facilities suffered $2.3 million in losses in the fiscal year that ended June 30.
"Myself and my team have made it clear that is unacceptable fiscal management," Mr. Spiegel told the Times Free Press.
Along with the financial problems, the health centers also had patient satisfaction issues, and Mr. Spiegel told the Times Free Press those issues are going to be addressed as well.
Now that the administrators of the health centers have been fired, Erlanger Senior Vice President Joe Winick, who previously worked at the centers, will take over the role of the leading the facilities on an interim basis, according to the report.
Erlanger also met with the U.S. Health Resources and Services Administration on Friday and laid out a plan to dissolve the co-applicant agreement that Erlanger and the board of the health centers have with the agency.
"It's a requirement under the HRSA grant. And we let them know we were dissolving that [board] and we were going to reinstitute both the management of the health centers and eventually the governance of the health centers," Mr. Spiegel told the Times Free Press.
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