Hospital commission repeats itself with vote to reject settlement offer

The Eureka Springs Hospital Commission once again rejected a $100,000 offer to settle a wrongful termination lawsuit filed by Jessica Petrino, its former director of nursing.

At its regular monthly meeting held Monday, Oct. 19, the commission again rejected the same settlement offer it had voted down on Sept. 21.

Hospital commission chair Willie Daniels said at the Oct. 19 meeting that the commission hadn’t previously rejected the settlement proposal.

“I do think it would be in our best interest to make a decision, or make a vote one way or another today,” Daniels said at the Oct. 19 meeting. “What I would like to entertain as a motion, and that would be for this commission to authorize the city attorney … to go into settlement negotiations, and we would reject the $100,000 demand and that way she can do what she needs to do and come to some settlement and then that way we can vote on that final settlement.”

Commissioner Vivian Smith responded: “So Willie, we already rejected the $100,000 at the last meeting.”

Daniels and commission vice chair Brian Beyler interjected that the rejection vote hadn’t happened.

“No, we tabled it,” Daniels said. “What I would like to entertain is that we entertain a motion to reject that $100,000 demand, and then that we would allow [the attorney] to go into negotiation with [Petrino’s] attorney to come to an agreed settlement and then we would vote on that final settlement.”

However, there was a 5-0 vote at the Sept. 21 meeting to turn down the same offer of $100,000.

“I move that we do not accept the $100,000 offer,” Beyler said at the Sept. 21 meeting. The motion was seconded by Smith and approved 5-0.

After the vote on Sept. 21, Daniels brought up a $15,000 counteroffer, saying the amount was suggested by the “city attorney.”

That counteroffer was tabled at that meeting and not brought up as an option at the Oct. 19 meeting. Beyler said on Sept. 21 that he felt accepting any kind of settlement would “set a precedence.”

“… We can reject the $100,000 demand, authorize [the attorney] to go into negotiations with that attorney and then we would vote on the final decision as to a settlement,” Daniels said at the Oct. 19 meeting.

That led to the second vote to reject Petrino’s proposal. Beyler, Smith and commissioners David Carlisle, Sharon Deramus and William Schmidt all voted to reject the proposal.

Just before the vote, Daniels announced that commissioner Kate Dryer — who voted in September to reject the settlement offer — had resigned from the commission.

Dryer is listed as a defendant in the lawsuit, along with Beyler, Deramus and Carlisle. The hospital is also listed as a defendant, along with former commissioners Sandy Martin and Kent Turner.

The lawsuit stems from Petrino’s termination in November 2024.

Petrino’s firing came three days after the dismissal of then-CEO Angie Shaw.

Attorney Gregory F. Payne of Rogers filed separate lawsuits on behalf of Shaw and Petrino on Dec. 6, 2024.

Petrino’s suit asks that she be paid her $95,000 annual salary in addition to benefits, sick leave, vacation pay and attorneys’ fees, or that she be reinstated to her position as chief nursing officer and compensated for her lost wages and benefits as well as attorneys’ fees.

Shaw’s suit seeks similar damages. Her annual salary was $145,800, the complaint says.

In answers to both suits filed March 4, 2025, by Arkansas Municipal League attorney Gabrielle Gibson, the defendants argued that the terminations of Shaw and Petrino did not violate established policy. They also argued that they are entitled to immunity under state law and that punitive damages are not recoverable against a municipality or a municipal hospital.

Filings in the case in May and June 2026 show Fayetteville attorney Katelynn Bookout replacing Payne as Petrino’s legal representative.

CEO REPORT

Hospital CEO Tiffany Means told commissioners at the Oct. 19 meeting that the facility had 324 patient encounters in September, including 235 in the emergency room and 89 in urgent care. Five patients left without being seen, Means said. The hospital saw 219 patients during the same timeframe in 2025, she said.

“We also received 78 EMS arrivals, completed 31 transfers, and cared for 10 behavioral health patients,” Means said. “We provided five observation stays, which we will continue to work on keeping our patients in observation status through the emergency department if we can keep their care close to home and be able to manage their care.”

Average “door-to-room” time in September was 3.8 minutes, Means said.

“Door-to-triage was 5.2 minutes,” she said. “Our door-to-provider was 19.5 minutes and our overall discharge length of stay averaged about 159 minutes.

“We are watching these measures not simply to report them, but to understand where patient flow and diagnostic coordination can improve.”

Means said the facility has been preparing for the winter months, ensuring that HVAC systems are in good working order, and stressed the continued need for parking lot improvements.

“I also want to raise the need for renovation and resurfacing of our parking lot,” Means said. “This is an accessibility and safety consideration for patients, visitors, employees and emergency services. I would welcome engagement with the city to explore a collaborative approach, including potential planning and funding opportunities. No partnership or funding commitment has been established, so my request is just to begin that conversation.”

FINANCIAL REPORT

Interim chief financial officer Doug Hoban wasn’t present at the Oct. 19 meeting, but Means reported that the pair will soon be working on a new budget for 2027.

She also updated commissioners on current bank account balances.

“As of Sept. 30, our reported cash balance was $3,178,352.03,” she said. “Year-to-date collections totaled $4,281,608.18, comparative with $5,204,010.59 in expenditures, resulting in a negative cash variance of $922,402.41.

“September’s approved cash report showed approximately $4,100 in positive monthly cash movement, with collections slightly exceeding expenditures. While encouraging, one positive month does not establish sustained financial improvement. We remain focused on revenue cycle performance, payor contracting, purchasing efficiencies, financial reporting accuracy and responsible expense management.”