The former CEO of Richmond-based VCU Health long lobbied against a now abandoned $325 million capital project and faced internal opposition from the health system as he did so, according to an Oct. 2 Richmond BizSense report.
Art Kellermann, MD, wrote several emails about the failed project in downtown Richmond, including to VCU President Michael Rao, PhD, in the weeks leading up to an eventual green light for the project, expressing his concern that the deal was overpriced and ill-suited to the health system's needs.
"At the very least," Dr. Kellermann wrote in one email, "we must clearly understand our costs and risks and consider the consequences of failure before committing to a deal that could cripple us for decades to come."
Dr. Kellermann's concerns were brushed aside by people within the system, including Vice President for Government and External Relations Matt Conrad, who forwarded one email from Dr. Kellermann to the system's CFO, saying, "FYI. He won't stop." Mr. Conrad also told colleagues in emails that Dr. Kellermann was "trying to blow up the deal," according to the report.
Dr. Kellermann eventually signed off on the deal in July 2021 and then, after VCU backed out of the project, resigned from his position in November 2022 at the request of Dr. Rao, who has described the failed project as "an anomaly."
Dr. Rao has faced calls for his resignation over the project, including from Gov. Glenn Youngkin, who wants him to step down as the chair of VCU Health.
VCU Health is expected to have to pay up to about $80 million for the abandoned project.