$1M legacy donor pulls funds, calls out Ontario hospital’s ‘bizarre and costly’ board decisions

“How tin anyone see supporting (London Health Sciences Centre)?” a erstwhile committee personnel asks successful a scathing missive calling retired nan existent committee of board and announcing plans to cease his $1-million bequest promise to nan infirmary instauration upon his death.

Ronald Breen, a chartered accountant who was astatine 1 constituent chair of nan London, Ont., infirmary network’s finance committee and moreover served connected nan committee of directors, says nan existent committee “does not person a governance regime” and has “lost its way.”

“If it had a governance regime,” he told Global News connected Tuesday, “we would not person had a business successful position of having 4 acting, interim aliases appointed CEOs successful nan past six years.”

The missive is nan latest rustle to nan organization, which — successful performance pinch repeated CEO turnover — has faced expanding financial scrutiny successful caller years that Breen suggests has eroded nationalist spot successful LHSC.

Recently appointed interim president and CEO David Musyj, however, says alteration is coming.

‘Executive activity turmoil’

In nan missive dated July 16, Breen writes that nan “effectiveness of LHSC governance has been importantly impaired for respective years” and that nan committee should beryllium “held accountable for nan executive activity turmoil.”

The revolving doorway of CEOs began pinch Dr. Paul Woods, taking complete from Murray Glendinning, who retired successful 2018. Woods faced challenges pinch morale among front-line unit during nan 2nd activity of nan COVID-19 pandemic successful precocious 2020, pinch 1 caregiver arguing that nan management grounded to decently hole and past tried to displacement blasted to front-line workers erstwhile cases among unit ballooned.

Woods weathered that large wind but was ousted successful January 2021 pursuing contention complete his stateside trips amid nan tallness of nan COVID-19 pandemic. That prompted a wrongful termination lawsuit, arsenic good arsenic nan resignation of nan then-chair of nan committee of directors and nan departure of 2 executive vice-presidents. The suit was resolved successful outpouring 2023 earlier it was group to spell to trial.

Dr. Jackie Schleifer Taylor filled nan domiciled connected an interim ground earlier being appointed president and CEO successful November 2021. Two years later, she took a time off of absence “due to a wellness matter.” However, nan announcement came 2 weeks aft nan London Free Press reported that nan Ministry of Health had launched an investigation into 2 world trips for executives and 1 planned travel that was past scrapped, totalling $470,000.

Dr. Kevin Chan, corporate aesculapian executive, was past appointed acting president and CEO of LHSC until Windsor Regional Hospital’s CEO David Musyj was brought successful this May.

Hannah Jensen, spokesperson pinch nan Ministry of Health, complimented Musyj’s activity skills and said nan state is “confident successful his expertise to bring those aforesaid skills to London Health Sciences Centre.”

“Questions related to soul quality assets matters and philanthropist relationships should beryllium directed to nan infirmary itself,” she added.

In summation to nan instability astatine nan top, Breen besides expresses vexation complete “key partnerships pinch different healthcare providers” being “ripped isolated astatine nan disbursal of bad relationships and incremental operational costs.”

While not specifically referenced, a notable illustration involves plans to sever a business pinch St. Joseph’s Health Care London, nan different infirmary web successful nan city. The London Free Press reported successful June 2023 that nan infirmary was scrapping a general collaboration agreement, pinch sources saying LHSC was driving nan split.

Later that month, LHSC and St. Joseph’s posted a joint missive to nan community stating that “our wellness attraction strategy is nether unit to present attraction successful caller ways that meet nan needs of our increasing and aging population” but they are “continuing to found general and informal agreements based connected diligent and wellness strategy needs.”

‘Banking connected a authorities bailout’

“I person keenly observed, successful horror, a financial disaster successful nan making,” Breen wrote successful nan letter.

He says that 7 years agone nan statement had complete $200 cardinal successful moving capital, which is calculated arsenic a measurement of existent assets minus existent liabilities. Now, LHSC has projected an “unprecedented” $150-million operating shortage for 2025 connected apical of deficits successful 2023 and 2024.

“Over nan past 3 years, you’ve sewage to an unimaginable magnitude of $275 cardinal worthy of deficit,” he said Tuesday.

The $150 cardinal estimate for 2025 whitethorn beryllium overstated arsenic Musyj has only conscionable stepped into nan domiciled and whitethorn not person “his hands astir nan business conscionable yet,” Breen acknowledged. Regardless, though, nan business is “probably heading successful that direction, which is beyond disappointing.”

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Breen besides suggests that “simply banking connected a Government bailout(s) is difficult to justify” erstwhile he alleges LHSC has nan “highest costs per lawsuit successful Ontario according to provincial backing formula.”

The Ontario Case Costing Initiative dataset is restricted and will not beryllium made available, a authorities website says. Data from nan Canadian Institute for Health Information for 2021-22 showed nan costs of a modular infirmary enactment astatine LHSC was little than average, though it noted that nan results should beryllium interpreted successful nan discourse of nan COVID-19 pandemic.

Overall, Breen’s missive concludes that “LHSC’s authorities of affairs is purely a usability of galore bad decisions” and “bloated executive payroll – now approaching $40 million” pinch nary “strategy toward stability.”

“The bizarre and costly organizational building approved by nan Board and implemented without a risk/cost study is parallel to borderline dereliction of nan Board’s responsibility to nan public,” his missive reads.

Schleifer Taylor was nan 3rd highest paid successful nan hospitals and boards of nationalist wellness class connected Ontario’s Sunshine List successful 2023 pinch a net of $786,003. She followed Ronald Cohn, president and CEO of nan Hospital for Sick Children, astatine $851,414 and Kevin Smith, president and CEO of University Health Network (Canada’s largest world wellness sciences centre), astatine $844,992.

Of nan 10 individuals pinch nan highest salaries astatine their respective hospitals successful 2023, 9 had “executive” successful their title astatine LHSC, nan CEO was nan only executive successful nan apical 10 astatine SickKids (eight were radiologists aliases neuroradiologists and 1 was nan main of research) and six were executives aliases vice-presidents astatine UHN (three were laboratory physicians).

Musyj, meanwhile, made a net of $433,027 arsenic president and CEO of Windsor Regional Hospital.

Breen would for illustration to spot nan committee replaced and whittled down to a halfway group of “experienced leaders, group that understand accountability, tin group goals and will request accomplishment and compliance pinch those items.”

Musyj, meanwhile, provided a connection welcoming “direct conversations pinch members of our community, who tin scope maine astatine 519-870-2999.” He said LHSC is “actively taking steps” to reside its financial business and that nan results of a guidance organizational building reappraisal and benchmarking workout will return “approximately 3 to 4 months to complete.”

“LHSC is not unsocial successful experiencing the numerous financial pressures galore hospitals crossed Ontario are contending with,” Musyj wrote.

“We’re committed to nan activity up to return nan statement to a balanced financial authorities while not compromising connected nan transportation of value care.”

Breen says nan determination to return steps towards pulling his $1-million bequest aid was very difficult because he was truthful proud of his years of unpaid activity pinch nan infirmary and nan guidance nan infirmary was headed successful erstwhile he made nan determination to group up nan bequest gift successful 2011.

But now, he argues it’s “inconceivable” that nan instauration and nan infirmary tin inquire for donations fixed “no power of fiscal responsibilities” and that “the governance authorities is surgery down.”