Nurses call for Michigan hospital CEO to step down as possibility of bankruptcy looms

The Michigan Nurses Association, which represents registered nurses at Iron Mountain, Mich.-based Dickinson County Healthcare System, have called for hospital Administrator and CEO John Schon to resign.  

"Under his leadership, the hospital was driven into such a bad financial position that our whole region's economy is at risk," Susan Berquist, RN, who works in the emergency department and is the president of the MNA union at the hospital, told Local 3 News. "As our community struggles to move forward, we all deserve accountability and transparency — values that John Schon clearly does not share. It's past time for him to go."

The union called for Mr. Schon to resign as the Dickinson County Healthcare System is exploring options to improve its financial position. The hospital recently hired Venable, a Washington, D.C.-based law firm, to help it pursue a restructuring, according to The Daily News.

DCHS Board Chairman Bill Edberg said the law firm is tasked with finding the best option for the hospital, and that Chapter 11 bankruptcy is still a possibility. He said the hospital has enough money to operate through the end of October.

The hospital may have access to $2.3 million that was held in escrow by Fifth Third Bank during acquisition talks with Marquette, Mich.-based UP Health System. UP Health System signed a nonbinding letter of intent in July to acquire DCHS. However, the organizations were unable to agree on the terms of the acquisition and ended negotiations.

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