Health system CEO fired without cause in wake of class-action lawsuit over unnecessary surgeries
Less than a month after announcing the departure of its CEO, Chesapeake Regional Healthcare has quietly agreed to pay out an undisclosed severance, as it was determined the man was fired without cause.
Former CEO and president of Chesapeake Regional Healthcare, Reese Jackson, may have had grounds for a lawsuit after he was unceremoniously terminated from a position he held for a decade—at the very least, that thought crossed the mind of the hospital system’s board of directors.
Since the June 1 departure of Jackson, the Chesapeake Hospital Authority, which oversees a network of community-run hospitals and practices in Virginia and North Carolina, has remained mum on the reason. However, a report from the Virginia-Pilot reveals that may be because there was no official reason given.
Citing notes from a May 29 board meeting, the outlet determined that Jackson was fired by unanimous vote in a closed session, with no cause determined. In fact, the vote followed a session labeled as “legal consultation” where the board apparently prepped for the fallout.
Part of that preparation included a note to negotiate a separation agreement with Jackson, and to name Chesapeake Hospital Authority’s chief nursing officer Amber Egyund as interim CEO until a permanent replacement could be appointed.
The board of the community hospital authority is made up of 11 individuals, all of whom voted to terminate Jackson and to move forward with some kind of termination compensation package. As for the details of that severance, despite Jackson being a public employee, it does not seem the terms will be revealed.
Because this dispute was settled as an employment matter, Chesapeake Hospital Authority is arguing that those records will be kept private, citing worker protection laws in Virginia.
HealthExec reached out for more information.
Claims of unnecessary surgeries
In the backdrop of all of this is a pending class-action lawsuit filed by nearly 900 women who claim that Chesapeake Regional Medical Center performed medically unnecessary and dangerous surgical procedures on the plaintiffs.
Jackson has been named as a defendant in that lawsuit. The women contend that he and other hospital executives failed to stop former gynecologist and obstetrician Javaid Perwaiz from performing the surgeries, as they brought in revenue for the health system.
That lawsuit is still pending.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.