The CEO of a safety-net hospital owned by the city of Nashville, Tennessee, has announced his resignation after an independent government auditor’s investigation found credible allegations of “fraud, wasteful spending and policy violations occurring at the Executive Level” to be “substantiated.”
Joseph Webb told Nashville General Hospital employees and its board Thursday he will be stepping down March 14, according to media reports that have been confirmed by the hospital. The executive’s contract was up for a renewal vote by the Hospital Authority Board later that day.
However, hours earlier, the city’s Metro Office of Internal Audit had published a report on an investigation it had launched after being contacted “by credible sources” with allegations of governance policy violations.
Citing hospital personnel testimonials, financial records, contract records, board meeting records and information systems, the auditor concluded multiple, though not all, of the violation allegations to be “substantiated,” meaning that “the preponderance of the evidence collected during the investigation indicates the incident occurred.”
Specifically, the auditor pointed to numerous hospital contracts totaling about $4.6 million that were never brought by Webb to the hospital’s board for approval and that Webb “intervened” to add or backdate signatures and dates on contracts or agreements that were requested by journalists through public open records requests.
Other substantiated allegations involved a doctor who was practicing at two of the hospital’s clinics and using their resources with no contract and at no charge, and over $230,000 of overpayments to the hospital’s valet services contractor.
The audit report came amid Nashville General Hospital’s ongoing financial struggles and prior audits criticizing the hospital’s financial oversight. Other media reports have pointed to a strained relationship between the hospital and Meharry Medical College, with which a physician services agreement had expired in 2023, and other criticisms over how the hospital is using the tens of millions in subsidies it receives from the city.
Webb has been the 150-bed hospital's longest-serving CEO, having held the role since 2015, and receives nearly $1 million per year in salary and other benefits. He most recently signed a three-year contract with the hospital in 2022.
A news release from the hospital from mid February touted a favorable CEO performance review committee evaluation of Webb, which gave him a 4/5 score. Earlier this week, however, a committee recommended that the city’s Hospital Authority Board not renew his contract ahead of a Thursday afternoon vote on the subject that was rendered moot by Webb’s resignation.
A release from the hospital confirming Webb's plans to step down outlined community healthcare initiatives launched under his watch, such as the launch of a "Food Pharmacy" tackling food insecurity and a "No-Wait Emergency Department," as well as the hospital's recent "A" quality rating from the Leapfrog Group. It also referenced the executive's "legacy of transformation, innovation, and expanded healthcare access for the Nashville community."
“I am deeply grateful for the opportunity to serve the people of Nashville over the past decade," Webb said in a statement provided by the hospital. "I want to thank my leadership team, our physicians, nurses and all employees for their unwavering commitment to innovation and excellence in patient care. I also extend my gratitude to the Metro Council, state representatives, community leaders and our hospital board for their steadfast support."
The city’s hospital board has not yet appointed an interim CEO to serve upon Webb’s departure and said it would discuss the issue in upcoming meetings.