Now that a response to a state survey is complete, the Eureka Springs Hospital Commission is ready to proceed with an “independent investigation” into accusations — aimed primarily at hospital administration — that have included allegations of unlawful violations and a hostile work environment, according to chair Sandy Martin.
That was one of a handful of topics discussed Monday, April 7, at the commission’s monthly workshop.
[The state survey investigation] is complete,” Martin said. “The other one was an independent investigation on the employee allegations that we said we would do after we had everything concluded and cleared from the state. That happened at the end of March. So, we’re now ready to do that.”
Martin said the commission’s attorney, Little Rock-based lawyer Gabe Mallard — who assisted the commission with the response to the state survey — has recommendations on resources to assist with the new investigation.
“We don’t think after talking to the mayor, and talking to Gabe, and a couple of you guys, we probably shouldn’t have anybody that is associated with the hospital do this if we want it to truly be independent,” Martin told commissioners. “So, Gabe is going to kind of research some. He’s worked with many before that have a done a variety of hospitals throughout the state, so he’s going to recommend some [firms] to us.
“I asked him to do that by our next [commission] meeting on the 21st, and so he’s going to do that. We will then issue a public statement in a public press release that we’re doing it, and then when that is concluded, we will probably at one of our commission meetings have Gabe present his top line and have the other independent firm present theirs.”
Commissioner Brian Beyler responded: “That’s a great idea.”
Later, Beyler asked: “That would be done at the public meeting, right? This presentation by the independent [firm]?” “Absolutely,” Martin said.
Martin told commissioners that she would provide a “playlist” to whoever investigates the allegations from YouTube videos of commission and city council meetings that included public comments by many former and current hospital employees, and members of the public, alleging wrongdoing and a hostile work environment. Most complaints have come against Cynthia Asbury, the hospital’s chief financial officer, and human resources director Jodi Edmondson, who is currently serving as interim CEO.
“I don’t know how far they’re going to go back,” Martin said of the timeline of the investigations. “I think we should suggest they go back several years.”
Beyler agreed. “Yeah, I think we’re back to ’23, ’22 even on some of these accusations,” he said.
“Some of this stuff … was like a year and a half ago,” commissioner David Carlisle said.
Martin said the commission will recommend that investigations go back to 2022.
“I think that’s far enough back,” Beyler said.
Martin said Brie Gibson, the Arkansas Municipal League attorney who is representing commissioners in separate wrongful termination lawsuits filed by former CEO Angie Shaw and former nursing director Jessica Petrino, drafted a public statement regarding the independent investigation that Martin would share with the commission.
“I’ll send it around to all of you, just keep it until it’s time that we can announce and plug in the firm’s name, but just so you have it,” she said. “You’ll know what we’re going to do.”
Based on emails obtained by the Times-Echo from Gibson through an open-records request, the suggestion of an independent investigation and the public statement was discussed with Martin in March.
“As discussed, I recommend that the Commission hire an outside agency/person to conduct a thorough investigation into all the employment allegations against any and all hospital staff,” a March 17 email from Gibson to Martin read. “I would issue a statement to the press only after the third party has been engaged.”
In the email, Gibson included her “thoughts” on the public statement, saying she was also forwarding it to Eureka Springs Mayor Butch Berry.
“The City of Eureka Springs and its Hospital Commission take all allegations brought to our attention very seriously,” the suggested public statement drafted by Gibson reads, according to the March 17 email to Martin. “In light of recent allegations, we plan to engage an independent, qualified third party to conduct a thorough and impartial investigation into these matters. At this time, we are unable to comment further, as we are committed to ensuring the investigation proceeds without any undue influence. Once the investigation is concluded, we will review the findings and take action as appropriate and necessary.
“We thank the community for their patience and trust as we work diligently to address these concerns with the fairness and rigor they deserve.”
Gibson’s email to Martin with the drafted public statement came the same day Martin forwarded an email to Gibson including a letter from Heather Wilson, a member of the city advertising and promotion commission, who has been outspoken regarding the hospital controversies.
Wilson’s email contains a handful of allegations, including information regarding a former hospital employee who was arrested in 2023 by the FBI and later received a 10-year prison sentence for involvement in sex trafficking of a minor. The email says the former employee has a lengthy background of court cases and questions how the employee made it past hospital background checks.
Wilson’s email, which says the former employee is Asbury’s sister, was sent to all city council members, hospital commissioners, Berry and local media.
After forwarding the email to Gibson, Martin sent another email to Gibson, Mallard and Kasey Nokes of the Municipal League asking: “Can I publicly say we have turned this over to our attorneys?”
“Are you available for a call in about an hour?” Gibson replied.
Martin responded that she was available for a call, and later that day Gibson responded with the email that included the drafted public statement.
HOUSE PROPOSAL BACK ON TABLE
While the commission is in the final stages of interviewing for a new CEO, other options are on the table, including an outside management company, and an offer from Dr. John House to run the facility is now back on the table.
Martin told commissioners at the workshop that she received a written offer from House that will be discussed at the commission’s regular monthly meeting, scheduled for Monday, April 21.
“An update on Dr. House, on his proposal,” Martin told commissioners. “I had asked him to send us more, as you remember his initial proposal was really vague and didn’t have any specifics, any financial arrangements or anything. I asked him to send that to me. … He did send it. I believe he sent it to everybody’s hospital email, but those still aren’t functioning well. So, I will send them out to you on your private emails so that you have that.”
The Times-Echo received a copy of House’s email to the commission, dated Sunday, April 6.
“Thank you for your interest in my company being retained to manage Eureka Springs Hospital,” House wrote. “My goal for the hospital is, I suspect, the same as yours: to continue the long history of providing the absolute best medical care possible to the citizens of Eureka Springs and the surrounding community.
“My reason for this proposal is to make operation of the hospital as easy and carefree as possible for the hospital commission.”
House’s proposal includes details about how House’s company, House Health and Life Sciences, Inc., would take over management of the hospital and what role the commission would have moving forward.
“A more detailed look at my professional experience as well my qualifications will be presented when we get together,” House wrote. “As you will see at that time I have a wide range of corporate, entrepreneurial, political, volunteer, and medical experience that equips me with a unique suite of skills for operating ESH. I and my team will bring extensive knowledge and experience to bear and help keep ESH on track for years to come.
“I know for the moment, your primary concern is a better understanding of what I’m proposing. … Please be aware this is simply a proposal. I look forward to coming to a final agreement that will best serve the healthcare needs of our community.”
Key highlights of the proposal include that House’s company would manage the hospital “in totality including all patient care, financial management, compliance with government regulations, public relations, employment decisions, etc.”
Other key parts of the proposal, according to the proposal, include:
• The commission would retain all legal rights to operation of the hospital.
• The Rural Emergency Hospital license would remain in the name of the hospital.
• All funds generated by clinical activity at ESH, as well as incentive money from government programs such as Medicare would continue to be deposited in the commission’s bank account.
• House’s company would employ the hospital’s management team and provide all staffing, and ensure continuous operation of the emergency room at all times, “with diversion status no more than 5% of the time.”
• The commission would be responsible for the cost of maintaining the exterior structure of the hospital and parking lot, while House’s company would be responsible for remodeling and maintaining the interior of the building.
• The agreement would be for a term of five years with an automatic renewal for an additional five years if either party is not notified of non-renewal at least 12 months before the renewal date.
“The agreement will have standard provisions of termination for cause,” the proposal reads.
Financial terms of House’s proposal were redacted in the copy that was sent to the Times-Echo. The Arkansas Freedom of Information Act includes a specific exemption for “(f)iles that if disclosed would give advantage to competitors or bidders.”
House’s proposal reads: “The commission pays HHLS whichever is greater: a flat monthly rate of (redacted) of all clinical services revenue including incentive and any other payments from any and all insurers and government entities.”
During their workshop, commissioners discussed the flat monthly rate proposed by House.
“Did I read correctly, a flat rate of $650,000,” an unidentifiable commissioner said. “… Is that correct?”
“That’s what I read, too,” Martin responded.
“Wow,” another commissioner said.
“There’s a lot of questions I have,” Martin said. “… I’ll contact him and you want to do the commission meeting on the 21st?”
TWO FINALISTS FOR CEO
Commissioners said they want to meet with House soon because they also have two finalists for the CEO position if the decision is made for the commission to continue running the facility.
“Probably the sooner the better,” Martin said of meeting with House. “Because, we also want to get our CEO in place, so hopefully we’ll have a recommendation from the search committee on that to be able to go into executive session at the meeting on the 21st as well.”
Carlisle told commissioners that the two finalists for CEO have “pretty broad experience,” and said both of them have experience “rescuing hospitals on the way to disaster.”
While names of the two finalists were not mentioned during the workshop, through the Freedom of Information Act, the Times-Echo received names of 11 of the applicants for CEO. Kim Stryker, assistant to Berry, explained that 29 people had submitted applications for the position.
“We have permission from 11 of the candidates to share their information with the public…,” Stryker wrote.
Ironically, on the city’s website, under job opportunities, the latest listing is for “city gardner” and includes the sentence: “NOTE: All information on job applications, resumes, correspondence, and emails to/from city offices, including Name, Address, Phone Number, and Email addresses are subject to the Arkansas Freedom of Information Act.”
The 11 CEO candidates whose identities were provided to the Times-Echo include:
• Tiffany Means of Fayetteville, who has had stints with Northwest Arkansas’ Northwest Health System and Mercy Health System;
• Aaron Stewart of Texas, current CEO of VillageMD; • Albert Esparsen II of New Mexico, current CEO of Kewa Pueblo Health Corp.;
• Bryan Hargis of Arizona, who was CEO of Mississippi County Hospital System in Blytheville and Osceola from 2003-2004;
• Carli Chakamba of Pennsylvania, current CEO of PAM Health of Pittsburgh;
• Chad Thompson of Nebraska, current administrator of Clarkson Community Care Center in Clarkson, Neb.;
• Charles Lathram of Louisiana, senior healthcare strategist and managing consultant at Independentdoc.com;
• Che Jordan of Arizona, current president and CEO of Ebony House Inc., a non-profit organization;
• Jeremy Riley of Florida, current CEO of CML Healthcare Consulting Services;
• Michael Salter of Mississippi, recently retired as partner, owner and COO of Nova Consulting Solutions, LLC;
• and Dr. Steven Lee Patterson of Oklahoma, regional director of healthcare clinics.
Martin reported that, as she had told members of the city council during an April 1 joint workshop with the commission she would, she had reached out to Washington Regional Medical Center about any interest in taking over the hospital and has plans to reach out to Mercy.
“I made contact with Washington Regional and they could care less,” Martin said.
“They had no interest at all, right?” Beyler asked.
Martin responded: “They’re investing in themselves to become a Level One trauma center. So, they have no interest in anything else. I’ve not contacted [Mercy] in Berryville yet, but they’re shrinking their services, so I think it’s going to be the same thing. But, we’re doing due diligence.”
TAKES FROM JOINT workshop
The commission also shared their opinions of the April 1 workshop with city council.
“I want to thank you all for the presence and how you presented yourself at the city council meeting,” Martin told commissioners. “I’ve heard a lot of good, positive feedback on that’s the way a meeting should be conducted, and they feel better about the hospital.
“… That could have been a softening. It’s still an issue, no question about that. We’ve got a lot of work to do. But, at least we’re getting more of our message out and the truth out. So, I think that’s important. If we can just keep doing that.”
Carlisle admitted he was “reluctant” going to the meeting.
“The impression I had of the council meeting, I really was reluctant going in because I’ve watched council in the past, and some of those are just brutal encounters,” he said. “It’s rude … negative, and it’s like not looking for solutions, just egos explode. That was the way we were heading into that, and at first you could feel that wall of negativity across the table, and then I saw it melt. Not go away, but it’s not monolithic like it was.
“People can hear, they can hear us.”
An unidentifiable commissioner later said: “Hopefully, they have a sense of how difficult this has been.”
Martin called it a “good first step.”
“I think we made the conciliatory efforts, our transparency, and willingness to stand up and answer,” she said. “And I appreciated … the melting and softening of the council. I thought that was great part of their compromise to kind of go, ‘Ok, maybe we do need to listen to some things,’ and hopefully that will continue because we do need their support.
“We don’t need them fighting us.”
Another commissioner responded: “No, they need to be on our team.”
“There’s no place for them to micromanage the hospital either,” Martin replied. “And they know that, loud and clear, I think.”
