NASHVILLE, Tenn. (WTVF) — In a surprise move, the CEO of Nashville General Hospital announced Thursday morning in a quickly called meeting with employees that he is resigning, effective in two weeks.
This comes amid growing scrutiny of CEO Dr. Joseph Webb, who has led the city's safety net hospital since 2015.
Less than two hours before his resignation announcement, the Metro Office of Internal Audit released the findings of an investigation into the hospital. The audit was launched after the office "was contacted by credible sources alleging fraud, wasteful spending, and policy violations occurring at the Executive Level" of the hospital.
According to the audit report, investigators found those allegations were "substantiated," which means "the preponderance of the evidence collected during the investigation indicates the incident occurred."
The audit found a variety of issues including: that NGH overpaid the company providing valet services; that nearly two dozen contracts totaling more than $4.5 million were never presented to the Hospital Board for approval; a doctor was given free office space to set up his own clinic and bill patients himself at one of NGH's facilities; signatures and dates were intentionally falsified on contracts and agreements after NewsChannel 5 Investigates requested copies.
Webb's announcement also came just hours before the Nashville Hospital Authority Board was going to vote on whether to renew Dr. Webb's contract. Earlier this week, the Board committee charged with evaluating the CEO's job performance voted to not extend his contract, questioning whether he was the right leader to advance the hospital.
Webb — who makes nearly a million dollars a year between his salary and benefits — has come under fire for a myriad of issues.
The hospital, which relies on substantial subsidies from the Metro government — nearly $60 million this year — has been grappling with ongoing financial difficulties.
Recent audits have uncovered multiple "significant deficiencies" in the hospital’s financial management.
In 2021, NewsChannel 5 Investigates reported that the hospital had fallen behind in paying its bills, all while allocating $30,000 a month to former Metro Councilman Jerry Maynard for public relations work. Local leaders criticized this expense.
Four years later, Maynard’s compensation has increased to over $37,000 a month, totaling almost half a million dollars a year. Among his responsibilities is promoting Dr. Webb online.
Adding to the controversy, questions have been raised regarding Webb's hiring decisions, including the recruitment of his daughter, Rana Webb, as director of operations. Despite limited experience, she reportedly earns $132,000 a year and oversees several key departments at the hospital.
Dr. James Hildreth, president of Meharry Medical College, expressed concern over the deteriorating relationship with Nashville General Hospital despite Meharry's agreement with the city designating Nashville General as the teaching hospital for its students.
And while Webb repeatedly assured the Hospital Authority Board last month that a Professional Service Agreement or payment contract between the two entities was in place, it actually expired two years ago. Hildreth maintains Nashville General has refused to sign a new one.
Board members have also raised concerns about Webb's strained relationships with city officials dating back years, as well as issues of transparency with the board itself.
The full board will meet this afternoon and is expected to accept Dr. Webb's resignation.
