Chattanooga, Tenn.-based Erlanger Health System fired four top administrators and moved to dissolve the board of two of its community health centers earlier this month. Now, five of the health centers' former board members are asserting that the health system and Erlanger CEO Kevin Spiegel had no legal right to fire the administrators or dissolve the board, according to a Times Free Press report.
Mr. Spiegel previously told the Times Free Press that the decision was made to replace the top managers at the health centers after the facilities suffered $2.3 million in losses in the fiscal year that ended June 30.
"Myself and my team have made it clear that is unacceptable fiscal management," Mr. Spiegel told the Times Free Press.
However, the former board members have released a statement asserting that the administrators were fired and the board dissolved due to "Erlanger's unwillingness to accept the independent authority of the governing board."
The former board members said that the health centers' former executive director brought "multiple solutions" to address operational financial problems, but Erlanger dismissed the proposals, acting in its own best interest and to the detriment of the centers.
In response, Mr. Spiegel told the Times Free Press that Erlanger "had the obligation, the legal right and fiduciary responsibility to undertake the recent changes at the centers."
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