A judge has found the board for Memphis, Mo.-based Scotland County Hospital guilty of violating the state's open meetings and records law, commonly referred to as the Sunshine Law, when it held two emergency closed meetings, the hospital confirmed in a news release shared with Becker's.
Circuit Judge Rick Roberts made the decision on Nov. 8.
At issue are two emergency closed meetings in August 2022. Scotland County Hospital noted that leading up to 2022, it faced a financial crisis, lacked efficient and accurate billing and accounting processes, and had weak internal controls and poor worker retention.
Specifically, by June 30, 2022, the hospital had only $602,126 cash available for operations, putting it on the threshold of not being able to make payroll.
"It was during this time the board discovered that the prior administration had not accurately reported to it certain financial information," the release said. "The board also learned of the existence of multiple one-signer accounts as well as previously undisclosed bank accounts. These discoveries prompted the board to take action."
The board held emergency closed meetings on Aug. 15 and Aug. 16 of 2022. During that time, board members voted to fire CFO Michael Brandon and accept the immediate resignation of CEO Randall Tobler, MD. Dr. Tobler already had submitted his resignation to the board in March 2022, and it was set to take effect Sept. 3, 2022.
According to the hospital release, board members Bob Neese and Joe Doubet voiced concerns about how and where the mid-August 2022 emergency closed meetings had been held, and at a regularly scheduled board meeting Aug. 30, 2022, it voted again to immediately terminate Dr. Tobler's employment as CEO and Mr. Brandon's employment as CFO.
The terminations were followed by training on the Missouri Sunshine Law in October 2022, attended by current board members, as well as the hospital's CEO and COO.
In March 2023, Dr. Tobler sued the hospital. The lawsuit included multiple claims, including slander and conspiracy counts, which were dismissed by the court, and a remaining claim alleged the board had violated the Sunshine Law when it held the two emergency closed meetings in August 2022, according to the hospital.
On Nov. 8, the court found that the board purposely failed to provide sufficient notice of those meetings. Mr. Roberts also ruled that the hospital must pay a $5,000 fine and attorneys fees to Dr. Tobler, according to the Missouri Independent.
"While the board is, of course, disappointed with the court's ruling on this matter, we continue to feel strongly that the hospital did not knowingly or purposely violate the Sunshine Law, and we will thoroughly examine our options with regard to any appeal in the days to come," the hospital's statement said.
Mr. Roberts wrote in his ruling that he did not find the testimony of the board's chair, Lori Fulk, to be credible.
"The selection of the members to attend clearly demonstrates that the purpose of this meeting was not the alleged financial crisis but was to focus on how to remove certain officers from the organization," he wrote.
Dr. Tobler's attorney, Lowell Pearson, told the Independent, "This is a total victory for Dr. Tobler and complete vindication for him that the actions of the hospital were unlawful."
Dr. Tobler told the publication he appreciates the judge's "thoughtful, careful and thorough decision," and that he is considering whether to refile the defamation count in the case.
Scotland County Hospital operates as a 25-bed critical access hospital. Meagan Weber is the current CEO and Achim Hoyal is the current CFO.