Ex-CEO agrees to settle case alleging he was 'scapegoat' for Vermont hospital's financial troubles

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Springfield (Vt.) Hospital and Springfield (Vt.) Medical Care Systems have entered into a settlement agreement with their former CEO to resolve a case that has been pending for roughly seven months, according to Valley News.

Tim Ford resigned as CEO of the hospital and health system in December 2018. In August 2019, he sued the hospital, system and several other defendants claiming he was a "scapegoat" for the hospital's financial problems. He alleged the health system and a consulting company forced him to resign.

Mr. Ford's lawsuit alleged violations of Vermont's Fair Employment Practice Act as well as intentional infliction of emotional distress, intentional and/or negligent disclosure, tortious interference, defamation, invasion of privacy, negligent supervision and civil conspiracy, according to Valley News

Springfield Medical Care Systems, which includes the hospital and several community health centers, filed for Chapter 11 bankruptcy in June 2019. The system has asked the bankruptcy court to approve the settlement with Mr. Ford. Though all of the defendants deny liability in the case, they're seeking to settle to "avoid the risk, uncertainty, and costs inherent in litigation," states the settlement agreement, according to Valley News.

If the court approves the settlement agreement, Springfield Medical Care Systems would pay Mr. Ford $50,000. The remainder of the $275,000 settlement would be paid by other defendants and Evanston Insurance Co., according to the report.

 

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