Erlanger Board Chairman Donnie Hutcherson said Tuesday night that a law firm has approved the process used by the board to award $1.7 million in manager bonuses.
The board had held up on awarding the bonuses until a review of the process could be carried out.
The bonuses were not discussed at the regular board meeting, but at a private dinner session where the board talks about items related to "strategic planning."
Erlanger several years got the Legislature to expand the Open Meetings Act to also cover "strategic planning" items.
Mr.
Hutcherson said, "Two weeks ago the Board approved the Fiscal Year 2014 pay for performance payout to management. These performance goals were based on the strategic growth needs of Erlanger which included financial, quality and patient care enhancements for the entire health system. Our Board approved the payout with the full understanding that the plan and the approval process were appropriate.
"Shortly after our vote, Erlanger’s leadership and I agreed to delay the payout until a review of the approval process could be conducted since a question had been raised about that process. At this time, a review has been conducted by an external law firm, Spears, Moore, Rebman and Williams, a law firm widely respected for its expertise and knowledge in open meeting guidelines for public organizations.
"During a meeting with the entire board of trustees, the firm informed the board members that the approval process was appropriate and the action taken by the board was also appropriate.
"I am honored to serve as chair of the Erlanger Health System board of trustees, knowing I serve alongside others who are dedicated, loyal and feel strongly about the mission and future of this community’s essential hospital. The board recognizes that our organization’s best assets are all the committed Erlanger associates, physicians and volunteers who are proud of where they work and the world class health care they provide this community."