3 board members resign from U of Maryland Medical System, 4 others on leave of absence: 5 things to know

Two more board members have resigned from the Baltimore-based University of Maryland Medical System — one day after Baltimore Mayor Catherine Pugh resigned from her role on UMMS' board of directors following public scrutiny of a $500,000 business deal with the health system, according to The Baltimore Sun.

Five things to know:

1. UMMS Board Chairman Stephen Burch said March 19 he accepted the resignations of board members John Dillon and Robert Pevenstein. Both individuals personally profited off of business deals with the health system while serving on its board.

"I take very seriously the concerns raised regarding board members that have business relationships with UMMS. Addressing this issue is of the highest priority for me and the organization. There is nothing more important than the trust of those who depend on our leadership," Mr. Burch said.

2. Mr. Dillion reported that his healthcare consulting firm made more than $150,000 per year through a capital and strategic planning contract with the health system in 2017 and 2018. Mr. Pevenstein reported that his technology companies amassed more than $150,000 in contracts with UMMS in 2017, including more than $108,000 in profits for himself. He also reported his son made more than $100,000 from UMMS.

3. Mr. Dillon and Mr. Pevenstein's resignations come one day after Ms. Pugh stepped down from her role on the board after she failed to disclose a $500,000 deal with UMMS.

4. Mr. Burch said he has also asked any members who have business relationships with UMMS to take a voluntary leave of absence while the health system conducts a "comprehensive review" of its business dealings, according to the report. Four individuals have opted to take a leave of absence. The Baltimore Sun reports that nine board members in total have reported business dealings with the health system while sitting on its board.

5. UMMS President and CEO Robert Chrencik has said some of the business deals in question were secured through a competitive business process, while others were not. The health system declined to release a list of deals that were part of a bidding process to The Baltimore Sun.

To access the full report, click here.

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