Franklin Hospital board votes to terminate CEO, but vote may be invalid

Board members of Benton, Ill.-based Franklin Hospital voted 4-3 Tuesday to terminate the contract of CEO Hervey Davis, effective Aug. 31. However, the vote may not count, according to the hospital's attorney, because the board must have five members vote in favor of the termination, The Southern Illinoisan reported.

This rule differs from a contract stipulation that says the full board must be present for such a vote, and with board bylaws that run contrary to the contract, requiring that all matters addressed by the board for a vote can advance by a majority among those who are present, regardless of a number. Two board members were absent from the vote Tuesday, according to the report.

Board Chairman Brent Young acknowledged the contract stipulation supersedes the bylaws, according to the report. But Mr. Davis' contract could be recalled for another termination vote at a different time.

Although Mr. Davis, who has served as CEO since 2002, is credited with turning around the formerly financially ailing hospital, he and other hospital leaders have become the subject of increasing criticism. Mr. Davis is also currently being sued for wrongful termination of FranklinHospital's chief of medicine.

Mr. Young said his reason for wanting to terminate Mr. Davis stems from a billing gaffe that set the hospital millions of dollars behind in unpaid bills and uncollected invoices.

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