Erlanger Health Systems

From the Chattanooga Times Free Press (reprinted with permission). By Kate Belz When Erlanger hospital's trustees take up the issue of executive bonuses at their board meeting tonight, the main reaction they want to avoid is surprise. They know all too well the effects of surprise. For nearly six months, the $1.7 million in bonuses Erlanger's board agreed to pay out in December has been the target of loud criticism from state and local officials. It triggered a high-profile rulingfrom Tennessee's attorney general, who found that the board violated open meetings law by discussing the incentives behind closed doors before the meeting. The bonuses even spurred a bill this legislative [...]

The Times Free Press reports that the Erlanger Health System governing board in Chattanooga plans to hold a new meeting to reconsider $1.7 million in executive bonuses it approved last year. With little notice, the board voted to award the bonuses after discussing them in private session. The surprise decision rankled state lawmakers in Hamilton County because they came after support for funds for the hospital, and after cost-cutting that affected the hospital staff's rank-and-file. The Open Meetings Act, which applies to public hospital governing boards, requires deliberations to be in public. The Attorney General issued an opinion last week affirming that the board's deliberations about compensation would not fall [...]