5 hospital executives fired as LHSC reins in budget deficit

Southwestern Ontario's largest hospital has fired five of its top executives and reworked its leadership structure as part of a sweeping plan to rein in a $150-million projected budget deficit.

Staff at London Health Sciences Centre (LHSC) received an internal memo Monday, obtained by CBC News, outlining changes to the management structure at the hospital. 

"I understand that restructuring can raise questions and uncertainties. I assure you that these decisions were made with careful consideration of our financial recovery, long-term vision and commitment to our patients and the community we serve," wrote Interim President and CEO David Musyj. 

Five executives with a combined tenure of over 20 years, and a combined 2023 salary of over $1.6 million, are no longer with the organization, Musyj said. They are:

• Abhi Mukherjee, CFO, who joined LHSC in September 2022
• John French, clinical diagnostic executive, who joined LHSC in September 2022
• CJ Curran, corporate health disciplines executive, who joined LHSC in September 2022
• Dipesh Patel, capital redevelopment and environmental operations executive, who joined LHSC in July 2013
• Jatinder Bains, corporate academic executive, who joined LHSC in April 2021

The cuts come days after the departure of two other executives, corporate hospital administration executive Brad Campbell and Sandra Smith, who was regional vice-president for the Southwest Regional Cancer Program.

In June, LHSC's board announced it was projecting a $150-million deficit next year, almost double the amount it faced last year. Musyj, who was brought in from Windsor's hospital in May, said he would look at everything from patient programs to management structure to bring the ballooning financial crisis under control. 

Since then, Musyj said he has had one-on-one interviews with employees, held focus groups and has conducted a management survey. 

"This engagement has been crucial as we examine our leadership structure, compare it to peer hospitals, and identify best practices to be more efficient with our work," the hospital president told staff Monday. 

In an emailed statement to CBC News, LHSC would not provide additional information on the situation until a full review and re-organization process was complete. 

"We stated these management organizational changes would take 90-120 days (3 to 4 months) to complete. We are still in month three of these changes," the statement attributed to Musyj reads.

Turbulent time at the top

The hospital has seen upheaval at the highest level in recent years. Former president Paul Woods was fired after it was revealed he travelled during the pandemic when restrictions were in place. Dr. Jackie Schleifer Taylor, the former CEO, left this past spring after a seven month medical leave. Her salary in 2023 was almost $804,000.  

During Dr. Schleifer Taylor's tenure, president positions were created, one at each Victoria, University and Children's, replacing the former structure which had just one one president for the entire hospital system.  

An LHSC organizational structure chart from 2022 — the time of its last restructuring —  shows at least 21 executive positions including the CEO.

The newly released organizational structure chart now features 11 positions, including the CEO. It steps away from using the word executive, instead laying out 10 vice president positions that answer directly to the CEO.

"With the support of the board, this new structure will also guide the next CEO, providing continued stability to our staff, physicians, patients and community partners," Musyj wrote

In the coming weeks, the internal memo says reviews will continue with input from the newly redesigned executive team.

"We will collectively work to identify the additional leadership changes needed to support fiscal recovery and best practices across LHSC," wrote Musyj.