Currently, public hospitals can meet and discuss marketing strategy and business plans in private, closed meetings. The new bill adds two provisions to the closed meetings rules, banning discussions of executive compensation during closed meetings and requiring a court reporter to take notes during closed meetings that can be subpoenaed during a lawsuit, according to the Times Free Press.
The bill is legislators’ response to reports that Erlanger Hospital in Chattanooga, Tenn., disbursed $1.7 million in bonuses to its executives during a closed meeting in 2014. State Sen. Todd Gardenhire (R-Chattanooga) told the Times Free Press that hospitals across the state have contacted him to voice opposition to the bill.
Public Tennessee hospitals have been allowed to discuss marketing strategy and strategic plans in closed meeting since 2008 so private-sector competitors cannot use the open meetings as a way to gain an advantage, according to the report.
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