The Metro Office of Internal Audit released findings from the investigation Feb. 27, hours before Dr. Webb announced his upcoming departure and after a hospital oversight committee recommended earlier this week that the hospital bring in a new CEO. The official vote to recommend a new CEO was 3-0 with one abstention, Nashville General Chief Marketing Officer Cathy Poole confirmed to Becker’s.
The full Metropolitan Hospital Authority board was scheduled to take up the issue at a meeting later in the day Feb. 27. However, Dr. Webb announced he will step down, effective March 14, according to The Tennesseean. His contract expires June 30.
“Ahead of the Nashville General Hospital Authority Board meeting this afternoon, CEO, Dr. Joseph Webb announced that he will not seek a renewal of his contract,” the hospital said in a news release shared with Becker’s on Feb. 27. “After a decade of dedicated service, Dr. Webb leaves behind a legacy of transformation, innovation and expanded healthcare access for the Nashville community.”
Metro Nashville’s Office of Internal Audit launched an investigation after receiving reports from “credible sources” alleging misconduct.
The audit found multiple substantiated allegations, meaning “the preponderance of the evidence collected during the investigation indicates that the incident occurred.” It specifically found that certain clinical and nonclinical contracts were left out of the Hospital Authority Board approval process by Dr. Webb.
Freddie O’Connell, mayor of the Metropolitan Government of Nashville and Davidson County, told The Tennessean that the audit found “dozens of contracts violated what is supposed to happen with the board. We’re going to have to encourage new leadership to be transparent with the board and Department of Law and Finance.”
The audit also found that the hospital falsified contracts and agreements requested through public open records requests, overpaid its vendor for valet parking services, and allowed a physician to use Nashville General’s clinic space, materials and services for his private practice without a written contract or agreement in place.
In addition to the audit findings, The Tennesseean reported that Dr. Webb has been under scrutiny “for an escalating friction with Meharry Medical College, a key partner with its faculty and students working at the teaching hospital.”
Dr. Webb has led Nashville General since 2015 and is the hospital’s longest-serving CEO. The hospital touted a number of hospital accomplishments during his tenure, including earning an “A” in quality ratings from Leapfrog; expanding healthcare access to underserved areas; launching The Food Pharmacy to address food insecurity; and strengthening patient support via the Community Care Team.
“I am deeply grateful for the opportunity to serve the people of Nashville over the past decade. I want to thank my leadership team, our physicians, nurses and all employees for their unwavering commitment to innovation and excellence in patient care,” Dr. Webb said in a statement. “I also extend my gratitude to the Metro Council, state representatives, community leaders, and our hospital board for their steadfast support.
“Together, we have transformed Nashville General from a hospital of last resort to a hospital of choice for thousands of Davidson County citizens. My time here has been the culmination of a vision I developed during my education at [Tennessee State University] — to build an integrated healthcare system that meets patients where they are, regardless of their ability to pay. As I step into the next chapter of my career, I will carry this experience and all of you with me.”
The hospital said further details regarding the leadership transition will be discussed in upcoming board meetings.