UPDATE: Memorial Health System Interim CEO Mike Scialdone sent this message to staff today:
On behalf of Memorial Health System, I would like to thank City Council for their work on what I know has been a very difficult issue. Memorial looks forward to working with the new Board of Trustees during what is a very exciting time for our health system and community.
On behalf of the associates, we also look forward to putting the noise and distractions behind us and focusing our community on what we are about, and that is great patient care.
———————————-ORIGINAL POST FRIDAY, MAY 4 11:10 a.m.———————————————
With a few revisions from earlier parameters, the Colorado Springs City Council named a new board Friday morning for Memorial Health System, effective immediately.
The group includes seven members, not five as previously indicated, and the appointees come from various backgrounds, not just health care as had been implied Tuesday when Council voted to remove the previous board effective Wednesday.
Going with seven instead of five was to accommodate the likelihood of absences during summer months when some might have prescheduled vacations, according to Council President Scott Hente. Also, several of the new group have served previously on the MHS board.
The new members:
Marcy Morrison, former state insurance commissioner, state House representative and Manitou Springs mayor;
Jim Johnson, head of GE Johnson Construction Co.;
Fred Veitch, an executive with Nor'wood Development Group;
Jan Weiland, vice president for investments, Cascade Investment Group;
Debbie Chandler, CEO of Colorado Springs Health Partners;
Dirk Draper, vice president of CH2M Hill engineering and construction company;
Curtis Brown, local executive with UBS Financial.
Named as alternates were Doug Stimple and Steven Gold.
"We thought they all had governance backgrounds, and all had a long commitment of service in the community," Hente says. Some were former board members, including Morrison, Weiland and Brown.
Hente says the Council didn't give the new board any marching orders per se, but that "the guidance is pretty clear. There's some pretty specific things in the city code, and we didn't expand on that." He didn't elaborate.
Hente says there's nothing new to report on the city's analysis of the former board's severance deal with CEO Larry McEvoy, who's last day is today. The previous board voted to pay him 18 months salary, $1 million, along with other perks valued at about $110,000. His contract called for only six months salary as severance pay.
Lastly, Hente says the interim ceo, Mike Scialdone, Memorial's CEO, who in a statement Tuesday said the "unprecedented" ouster "poses major risks" to Memorial, might have changed his mind.
"I've subsequently talked to Mike since then," Hente says. "If you were to ask Mike right now, he wouldn't necessarily have that opinion now. Just the normal caution you would have. He has since talked to a couple of oversight committees, bond agencies. He's explained the situation. I think he feels a lot better of where we're going now. They feel they understand what's going on. I think it was more nervousness, caution, but he's feeling better about things now."
Scialdone had expressed worry over the board change affecting Memorial's bond rating, which influences borrowing costs, "regulatory concerns" on which he didn't elaborate, and the "anticipated transition to University of Colorado Health," with whom the city is negotiating a lease. He didn't elaborate on why he was concerned about risks to those things.
We've asked Scialdone to elaborate but haven't heard back. Check later for more information.
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