Miami-based Jackson Health System could be liable for millions of dollars to honor a lease its former CEO Eneida Roldan co-signed with a group of physicians after the health system's partnership with the physicians fell through, according to a Miami Herald report.
Ms. Roldan co-signed the lease for an office in Aventura, Fla., with South Florida Multispecialty Associates last January, when the health system was planning to acquire or contract with the practice. However, the deal fell through and the landlord is threatening to sue the health system.
Jackson's board is claiming Ms. Roldan signed the lease without its approval, which is required for all contracts over $1 million. An assistant Jackson County attorney says this failure would invalidate the contract, according to the report. However, at a board meeting in December, the board chair recommended the board settle with the landlord due to the challenges taking the case to court could create. Another member worried the landlord could still sue the physicians, who could then sue the health system, and encouraged the board to ask the court to make a declaratory action regarding the liabilities before entering into a settlement with the landlord. The board ultimately decided to authorize the health system's current CEO to offer up to $700,000 to settle with the landlord.
Mr. Roldan has denied any improper actions related to the agreement and told the Miami Herald the board authorized her to execute agreements with Multispecialty Associates.
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Ms. Roldan co-signed the lease for an office in Aventura, Fla., with South Florida Multispecialty Associates last January, when the health system was planning to acquire or contract with the practice. However, the deal fell through and the landlord is threatening to sue the health system.
Jackson's board is claiming Ms. Roldan signed the lease without its approval, which is required for all contracts over $1 million. An assistant Jackson County attorney says this failure would invalidate the contract, according to the report. However, at a board meeting in December, the board chair recommended the board settle with the landlord due to the challenges taking the case to court could create. Another member worried the landlord could still sue the physicians, who could then sue the health system, and encouraged the board to ask the court to make a declaratory action regarding the liabilities before entering into a settlement with the landlord. The board ultimately decided to authorize the health system's current CEO to offer up to $700,000 to settle with the landlord.
Mr. Roldan has denied any improper actions related to the agreement and told the Miami Herald the board authorized her to execute agreements with Multispecialty Associates.
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