2 board resignations, budget prompt Missouri hospital meeting

Salem (Mo.) Memorial District Hospital has called a special meeting for Aug. 9 to address the hospital budget and resignations of board members, according to a news release shared with The Salem News on Aug. 7.

A.J. Seay, a board member since 2007, and Willie Strader, a board member since 2019, resigned from the board Aug. 1.

The resignations came the same week as the hospital board announced the appointment of Jason Edwards as interim CEO of Salem Memorial, according to The Salem News

"Salem Memorial Hospital Board of Directors would like to announce a change in administration," board member Ray Bruno said in an Aug. 3 news release, according to the publication. "Jason is a Salem native and has served the hospital and community in various roles for 20 years. Under Jason's leadership, SMH will continue to move forward and provide the highest quality patient-centered healthcare with compassion and professional excellence."

Mr. Edwards replaces Wayne Reid, who was appointed CEO in 2022. Rural Health Group, which was brought in to manage the hospital amid financial issues, hired Mr. Reid, according to The Salem News.

The publication reported that RHG, which on Aug. 1 announced it was ending its contract to run the hospital, effective Sept. 1, alleged breach of contract regarding the interim CEO appointment, and the hospital board. 

RHG may terminate the contract with the hospital "immediately" but was willing to stay on for 30 days to help with the transition "under the assumption that the hospital would continue to honor the terms and provisions of the agreement," Dennis Davis, manager of RHG, told the hospital board, according to The Salem News.

RHG sent an amendment to the hospital Aug. 3 giving pay and supervision of the CEO over to Salem Memorial and releasing RHG from liability, the publication reported. The amendment was still under consideration as of Aug. 7.

Becker's reached out to the hospital and will update this article if more information becomes available.

Read the full report here

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