The former chief executive officer of the troubled Springfield Hospital, who says he was a “scapegoat” for the financial meltdown at the organization late last year, has filed a lawsuit against some of its board members and administrators over his forced resignation.
The 35-page lawsuit, filed Aug. 14 by former CEO Tim Ford, claims the board blamed him for the hospital’s financial condition to evade accountability and claim credit for Ford’s initiatives.
“Mr. Ford’s departure exacerbated persistent problems that Mr. Ford was working hard to address, and created new ones,” the lawsuit alleges. “Springfield Hospital’s very survival is now in question.”
Ford is seeking $13,582 for each two-week pay period since he received his last check, totaling $230,000 as of Aug. 9. He’s also seeking compensation for attorney fees, damages and future lost income.
Ford, who became CEO in 2013, was let go at the end of last year, when the hospital was under financial strain and questions were arising about mismanagement within the organization.
The lawsuit alleges Springfield Medical Care Systems board members George Lamb and Richard Dexter met with Ford at his office the morning of Dec. 12, 2018, and forced him to resign. Ford asked to speak with his wife and attorney before making a decision, but Lamb and Dexter gave Ford 15 minutes to resign or be fired, according to the lawsuit.
After he resigned, Ford allegedly received a letter from the board informing him he would not be receiving the 12-month salary and benefits he was entitled to as part of his contract, the lawsuit says.
The lawsuit was filed against 11 people, including interim CEO Mike Halstead and acting CEO Josh Dufresne, along with board members and Quorum Health Resources — the organization hired to manage Springfield Hospital after Ford resigned.
The lawsuit alleges Quorum has mismanaged the hospital since then and points to a decision in February to terminate 27 positions and cut salaries by 4%, which resulted in the resignation of 77 people. Quorum later restored salary cuts to attract and maintain employees.
In June, Springfield Hospital filed Chapter 11 bankruptcy after an audit found the organization lost $14 million in two years.
Ford, who now lives in South Carolina, issued a statement through his attorney about the lawsuit. The statement says Ford was fired shortly after he was commended by the board for doing a “fine job.”
The lawsuit says Springfield Hospital had challenges when Ford took over and that he had a plan to turn the financially challenged organization around. The statement claims board members acted in their own interests in asking Ford to resign and have since “seriously mismanaged” the organization.
Ford has continued to search for a job without success due in part to his now tarnished reputation, the lawsuit says.
Ford’s lawyer, Stephen Ellis, said the parties tried to reach an agreement through mediation, which extended from January to April, but were unsuccessful.
Halstead, a Quorum employee who became interim CEO of the hospital in January, declined to comment on the lawsuit.
