Board members of Benton, Ill.-based Franklin Hospital voted Tuesday to accept the retirement of CEO Hervey Davis, effective June 30, according to a WSIL report.
The hospital has not yet named a replacement for Mr. Davis. However, Tim Morthland, MD, PhD, founder and president of West Frankfort, Ill.-based Morthland College, Morthland College Business Enterprises and Morthland College Health Services, has made a proposal to take over, build a new hospital and restore some services, according to the report.
The board could potentially take up his proposal at a special meeting July 26.
Mr. Davis' retirement comes about a month after board members voted 4-3 to terminate the CEO's contract, effective Aug. 31. But that vote appeared invalid at the time, according to the hospital's attorney, because the board must have five members vote in favor of the termination, The Southern Illinoisan reported.
Mr. Young said then that his reason for wanting to terminate Mr. Davis stems from a billing gaffe that set the hospital millions of dollars behind in unpaid bills and uncollected invoices.