Niagara Health ironing out details after severing ties with CEO last week
Board voted Wednesday to terminate part of deal with St. Joseph’s Healthcare System
Despite a termination clause worth more than $1 million built into Dr. Tom Stewart’s contract, severing ties with Niagara Health’s former chief executive might not be an expensive undertaking for local hospitals.
Stewart returned Wednesday from a Christmas vacation in the Dominican Republic that flouted federal government COVID-19 advisories against nonessential international travel, resulting in outrage from hospital workers, unions and political leaders.
It also led to an unscheduled in-camera meeting of the Niagara Health board of directors convened at 5 p.m. Wednesday.
Board members voted to immediately sever ties with Stewart by terminating the portion of Niagara Health’s shared management agreement with St. Joseph’s Health System in Hamilton dealing with the CEO.
Despite the million-dollar-plus golden parachute built into Stewart’s contract — providing him 24 months pay at $552,500 a year if the hospital terminates its agreement with him without cause — Niagara Health board chair Bunny Alexander said Stewart is an employee of St. Joseph’s Healthcare, not the local hospital system.
Instead of paying Stewart directly, she said, Niagara Health has been purchasing his services from the Hamiltonbased hospital system for the past six years, at a cost of about $140,000 annually.
Alexander said there is, however, a provision within Niagara Health’s service agreement with St. Joseph’s to provide 90 days’ notice before the contract is terminated. She said “details related to the termination are under discussion between Niagara Health and St. Joseph’s.”
Alexander said public notice of the Niagara Health board meeting was not provided, because it was a personnel and legal matter and the meeting was held behind closed doors.
“Immediately following the meeting, we provided a public update of the board’s decision,” she said, referring to a media release issued Wednesday at about 9 p.m. It announced Stewart had been effectively fired, and praised the “hard work and dedication” of hospital staff and physicians during the pandemic.
“The Niagara Health board of directors are very proud of their extraordinary efforts.”
Niagara Health board members also voted during that meeting to appoint current Niagara Health president Lynn Guerriero as interim CEO.
Other aspects of the agreement between the two neighbouring hospital systems will continue, such as programs and services that are jointly provided, said Alexander.
Niagara Health’s decision to sever ties with Stewart was praised by members of the community, many of whom had called for Stewart’s resignation. Niagara Centre MPP Jeff Burch — who on Wednesday complained the lack of leadership demonstrated by politicians and leaders of health-care organizations “shakes everyone’s confidence” — complimented the board via social media, saying they made “the right call.”
“Thank you to Niagara Health for taking swift action,” Burch said, while also congratulating Guerrero on her new interim position.