Ousted CEO inks $1.2M settlement with New York hospital

Seven weeks after Erie County Medical Center's board of directors unanimously voted to remove Richard Cleland as CEO, the Buffalo, N.Y.-based hospital has agreed to pay him $1.2 million, according to The Buffalo News.

Mr. Cleland began serving as ECMC's interim CEO in April 2014, and was named the hospital's permanent CEO in May. In November, the hospital board said it voted to fire Mr. Cleland for cause. However, Mr. Cleland said he resigned for cause.

When Mr. Cleland was abruptly removed from his position, he was owed $1.2 million under his employment contract with the hospital, which ran through the end of 2018, according to the report.

Under the agreement, the hospital will pay Mr. Cleland $1.2 million over two years. Mr. Cleland also agreed to a noncompete clause that prevents him from working for any other hospital in the Western New York market or for any vendor or company that does business with ECMC for the next two years.

ECMC officials released a statement confirming the settlement but said the hospital and Mr. Cleland would have no further comment, according to the report.

More articles on health law:

HCA strikes $2M deal to settle whistle-blower allegations
Year in review: Transactional trends of 2015 and 7 tips for hospitals as they enter 2016
Norton Healthcare, U of L settle 5-year dispute over Kosair Children's Hospital

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars