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Metro draws up settlement agreement for former Nashville General Hospital CEO

Dr. Joseph Webb at Nashville Hospital Authority Board meeting
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NASHVILLE, Tenn. (WTVF) — The Nashville Hospital Authority is set to approve a huge payout to Dr. Joseph Webb, the former CEO of Nashville General Hospital.

Webb left the job earlier this month amid concerns about his management style and questions about his management of the hospital's money, much of which comes from Nashville taxpayers

A month ago, Dr. Joseph Webb said he saw nothing unusual about his sudden announcement that he was stepping down as CEO of Nashville General Hospital, a position he'd held since 2015.

"It's not unusual. It's just clearing the pathway for the new leadership," he told NewsChannel 5 Investigates. "It's not a resignation."

Yet he gave just two weeks' notice, and by March 14, he was gone.

Now, the severance agreement between Webb and the city shows he's getting more than $1 million payout, which includes his full salary and benefits through the end of June, plus a one-time retirement payment of $890,813.

Yet, despite Webb's hasty announcement that he was leaving Nashville General, there were growing questions about his job performance.

"There are inconsistencies. There is retaliation. There is favoritism and nepotism. There is some nonfunctional medical equipment, and disparities in hiring practices," said chair Christy Smith at the Feb. 25 meeting of the Nashville Hospital Authority's CEO Performance Review Committee. "To me that goes to culture."

After a vote of no-confidence at that meeting, it was beginning to look like the board was not going to renew his contract, which was set to expire on June 30.

But before the full board could vote on it, Webb informed board members that he was choosing not to renew his contract.

This came just as the Metro Internal Audit department released the scathing results of an investigation that found "fraud, wasteful spending, and policy violations at the Executive Level" of the hospital, including more than $4.5 million in contracts that Webb never got approval for from the Hospital Board.

On top of that, NewsChannel 5 Investigates has also reported on ongoing financial problems at the hospital, the long-running feud with the leadership of Meharry Medical College, and recently, how Webb's then 26-year-old daughter was hired with little apparent experience to oversee more than half a dozen "key departments" at the hospital.

As CEO, Webb made nearly $1 million a year between his salary and benefits.

And while some may question giving him more than that as he leaves the hospital under a cloud of controversy, Metro Legal Director Wally Dietz told NewsChannel 5 Investigates this settlement was "in the best interest of" the city.

According to the agreement, Metro "avoids the delay, expense and uncertainty of litigation" while in exchange, Webb agreed to clear out his desk and not have anything to do with finding his replacement or running the hospital ever again.

After the Board approves the payout, it still must be approved by the Metro Council at its meeting on Tuesday.

The Council will also be asked to approve an additional $10 million dollars for the hospital to keep it running through July. The city has already given Nashville General nearly $60 million this year in subsidies to keep its doors open and accessible to the city's poor and uninsured.

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