Franklin, New Hampshire-based LRGHealthcare's 2020 bankruptcy was due to several missteps and misjudgment, leading to the two-hospital system's sale of assets to Concord (N.H.) Hospital, a report by the state attorney general found.
An April 22 report from the Laconia Daily Sun shows that it was "highly unusual" for the nonprofit system to have the same CEO and CFO for a long time. Thomas Clairmont held the CEO role from 1989 to 2014 and Henry Lipman served as CFO from 1997 to 2017, according to the Daily Sun.
Despite having several financial challenges, the system moved ahead with $51 million in capital projects. Renovations were finished in 2012, but didn't provide the revenue needed to cover the costs, the report found.
The report also found that while board members fulfilled their duties, they did not question the CEO and CFO because of their long tenure.
"That said, in making major decisions, the board, at least until 2014, deferred too much to the recommendations and conclusions of the long-term executives and failed to challenge the executives," the report said, according to the Daily Sun.
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