Sun Sentinel Palm Beach Edition
Broward Health CEO abruptly exits
Beverly Capasso resigns on Wednesday, adding to embattled system’s problems
Beverly Capasso, chief executive officer of Broward Health, abruptly resigned Wednesday, giving no reason for quitting just eight months after being hired.
The resignation of Capasso, who had been named permanent CEO in January, throws further turmoil into a system that has been hobbled by indictments, investigations and infighting among board and staff. The taxpayer-supported system, which operates five hospitals and various treatment centers, has long been accused of corruption, political intrigue and excessive payments to outside law firms.
“We can all be proud of the progress made over the last two years, and I am confident that the achievements will continue,” Capasso said in a news release issued by Broward Health. “It was my great honor to serve and lead a remarkable team of caring health professionals.”
Capasso is among the five Broward Health leaders under indictment for alleged violations of Florida’s openmeetings law in their handling of the dismissal of interim CEO Pauline Grant. All pleaded not guilty, but the case did little to dispel the institution’s reputation for secrecy and disorganization.
Internal tensions at Broward Health, which is run by a board appointed by Gov. Rick Scott, have worsened in the past few months. Capasso and her
senior staff had clashed with Broward Health’s general counsel, Lynn Barrett, over legal fees to outside law firms, such as Foley & Lardner, with some board members joining in questioning the size of payments. As of June, for example, the system had paid the Foley firm more than $2.6 million.
Broward Health is operating under the supervision of an outside law firm, Baker Donelson, hired to make sure the organization complies with a 2015 agreement with the federal government to settle federal charges over improper payments to physicians. The firm is known as an Independent Review Organization, or IRO.
Board Chairman Andrew Klein said Barrett engaged in the “weaponization” of the outside law firm, using it to attack her bureaucratic enemies, including anyone who questioned legal fees. Capasso’s departure, he said, appeared to be a consequence of these conflicts.
“I think, unfortunately for anyone who’s followed Broward Health for the past few years, her departure is not surprising,” he said. “When you have the weaponization of the IRO, that doesn’t make an ideal environment.”
Klein called Capasso’s departure a loss to the organization, saying, “It’s very disappointing to see Broward Health lose a great CEO who brought both stability and progress to the system.”
Former board Chairman David Di Pietro has accused Barrett of orchestrating his own suspension from the board, after he questioned legal expenses. He said she had originally been hired on the advice of lawyers with Foley & Lardner. In a May legal filing in a lawsuit Grant filed against the board, Di Pietro said he had been instructed by a lobbyist close to the governor to meet with Foley & Lardner lawyers in 2015 to choose Broward Health’s next general counsel, a process that resulted in Barrett’s hiring.
Barrett did not respond to a request for comment.
In addition to generating more turmoil, Capasso’s resignation could hurt the system’s finances. In recent months, Broward Health officials had talked of raising the institution’s sagging bond rating by demonstrating improved finances and management stability. The departure of a CEO after just eight months is unlikely to impress the rating agencies, whose assessments determine how easily and at what cost the system can borrow money.
Board member Christopher
Ure said he was concerned about the impact on the organization.
“I was extremely disappointed to hear the news that Ms. Capasso found the situation untenable,” he said. “I had tremendous confidence Ms. Capasso would bring stability to the organization. Ms. Capasso brought in a highly competent team who should be given every opportunity to stabilize Broward Health.”
Board member Steven Wellins said Capasso would leave a seasoned, highly professional team in place at Broward Health headquarters and the system’s hospitals, so he had no concerns about any effects on patients.
“Patient care comes down to the thousands of professionals who every day strive to be the best,” he said. “I have zero concern about patient care. I think we have top people in place, and I think it will be business as usual.”
With a solid team in place to run the system, he said, the board would be able to take the time to find the right person to replace Capasso.
Always a highly political organization, with board members selected by the governor and vast sums to spend on contracts, legal fees and employees, Broward Health has had little stability over the past several years.
A federal investigation resulted in an embarrassing $69.5 million payment to settle charges over an illegal system for paying doctors. A previous CEO, well-liked emergency room physician named Dr. Nabil El Sanadi, committed suicide in early 2016.
The Broward Health board bumbled through a series of interim CEOs and failed national searches before handing the job to Capasso on an interim basis in 2017 and permanently last January.
It’s unclear what the board will do next and what steps it will take to replace Capasso. The last CEO search, made more difficult by Broward Health’s tarnished brand, failed to find candidates that were acceptable to the board, which decided to offer the job to Capasso.
Capasso, whose departure will not be immediate, said she will work closely with the board to smooth the transition to new leadership, according to a news release from Broward Health. “I am ready to move on to the next chapters of my life,” Capasso said in the statement. “I am completing my doctorate of nursing and look forward to spending more time with my family.”