Quorum, Vermont hospital board seek dismissal of lawsuit over former CEO's departure

The Springfield (Vt.) Hospital and Springfield (Vt.) Medical Care Systems' board and operator Brentwood, Tenn.-based Quorum Health Resources are asking a federal court to dismiss a lawsuit filed by former CEO Tim Ford related to his departure from the hospital, the Valley News reports.

Mr. Ford, who resigned in December 2018 as CEO of the hospital and health system, filed a lawsuit in August, claiming he was a "scapegoat" for the hospital's financial problems.

The lawsuit alleges board members forced Mr. Ford to resign by threatening to terminate him, according to the report. In the lawsuit, Mr. Ford seeks severance pay. The lawsuit also alleges Mr. Ford was not paid contractually due salary and benefits, and claims hospital mismanagement by Quorum. Springfield Medical Care Systems filed for bankruptcy last June.

On Jan. 9, health system leaders told a federal court in Burlington, Vt., that they can't be held personally liable for acting in "good faith" and in "the best interests" of the organization, the Valley News reports. They also reportedly said they can't be held liable for contractual obligations between Mr. Ford and the health system, and were not obligated under law to warn Mr. Ford, an "employee at will," about their decision to seek his resignation, fire him or allow him to consult with his lawyer.

Quorum, which employs Springfield Hospital interim CEO Mike Halstead and is named in the suit, is supporting the health system leaders' motion to dismiss.

Read the full story here.

 

More articles on executive moves:
Capital Medical Center taps Chris Sloan as COO
West Marion Community Hospital names Gabe Bullaro CEO
CEO of 2 Centura Health Kansas hospitals to retire

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