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Turmoil Between UMB and Hospital System Forces Out UMMS CEO and Chairman

Clarence Lam

Issue date: 8/15/08 Section: News
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On Wednesday, August 20, the chairman and nine other members of the board of directors of the University of Maryland Medical System (UMMS) resigned, in part, as a result of escalating divisions between officials of the hospital system and the University of Maryland, Baltimore. 

 

The meeting, held originally to select a new chief executive officer for UMMS, left the future of the hospital system in further upheaval as conflicting sides assigned blame for the resignations. 

 

John Erickson, the board’s chairman, told the Baltimore Business Journal upon immediately leaving the meeting that, “There was some implication that I was creating controversy, and had too much influence on the board.” 

 

According to the Journal’s story, he believed that the University of Maryland Board of Regents and officials at the School of Medicine were behind Governor Martin O’Malley’s request that he resign in July. 

 

“The university felt they should have more say in how things are resolved and they used their influence to get what they wanted,” he told the Journal. 

 

Tensions between these parties stem from the unique arrangement between the School of Medicine and UMMS.  Nearly all physicians in practice at UMMS are also appointed as faculty members at the medical school.  The dual appointments leave physicians conflicted when priorities of administrators at UMMS and the school do not coincide. 

 

These conflicting priorities, and a disagreement over the future of a new $350 million outpatient care center being built at Lombard and Greene Streets became readily apparent earlier this year as, according to a Baltimore Sun article, a letter signed by the chairs of numerous departments at the school and sent to the Board of Regents in June stated that relations had “deteriorated to a point where the future of both institutions is jeopardized.”

 

Earlier this year, the physicians’ concerns were brought to the attention of O’Malley.  Then in July, Edmond F. Notebaert announced his retirement as chief executive officer of UMMS. 

 

As the UMMS Board of Directors set about seeking a new CEO, further tensions arose over the selection of an inside or outside candidate and the composition of the board itself.  Seven new members were just recently appointed by O’Malley. 

 

According to reporting by the Sun, Erickson also faulted a system through which university representatives on the board, many of whom serve as ex officio members, exerted too much influence over deciding new leadership and allocation of capital projects funding.  He told the Journal that further expansion of UMMS may be hampered by the university’s clout over the hospital system’s board. 

 

Upon the departure of Erickson, the board selected Robert Chrencik, UMMS’ chief financial officer, to serve as interim CEO while a national search is conducted to permanently fill the position.  Maryland House of Delegates Speaker and board member Michael Busch will serve as interim chairman.


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