Hospital board resigns as province appoints supervisor to clean up financial mess

The entire board of directors of the region's largest hospital has resigned, a move that came minutes after the province announced it had appointed an outside investigator to fix the London Health Sciences Centre. 

David Musyj, who has acted as the interim CEO of the hospital and oversaw the departure of seven senior executives in the last few months, has been appointed as supervisor for the hospital.

The hospital is projected to have a budget deficit of $150-million. 

"Mr. Musyj will work closely with the London Health Sciences Centre (LHSC) senior leadership and staff to address concerns regarding hospital governance and operations, and management practices, including concerning financial performance, that were found as a result of a third-party review," the province's health ministry said in a statement. 

Musyj said he extends his "sincere appreciation" to the board members that voluntarily stepped down "in acknowledgement of the need for a fresh path for (the hospital) under new leadership." 

Mattew Wilson, the now-former chair of the board of directors, said he is confident in Musyj's abilities. 

"LHSC's volunteer board of directors dedicated countless hours to trying to ensure the best course forward for the hospital and our community. This is why, on our own initiative, we first brought Mr. Musyj to London,"  he said. "I support the decision to appoint Mr. Musyj as supervisor, an appointment which I believe will facilitate a quicker recovery for LHSC, and supported the decision to voluntarily resign."

Musyj will provide the ministry of health with regular updates on his work as supervisor, officials said. "A supervisor is brought in when there are concerns with quality of the management and administration of a hospital," spokesperson  Hannah Jensen said. 

'It's time to do this,' says former chief of medicine

The changes announced in Wednesday's shakeup are identical to what Dr. Donald Farquhar, a former chief of medicine at University Hospital, argued should happen in May. 

"The long-term outlook is for significant structural changes to be made," Farquhar said. "Most people are feeling optimistic that this is the right thing to do, this is needed. It's time to do this and that we can only end up with positive change as a result."

Farquhar, an academic who holds a master's degree in health policy, said Kingston General Hospital underwent a similar process 16 years ago when the province stepped in to address fiscal problems.

"The hospital regained its fiscal footing, and emerged from that process in very good shape," said Farquhar. "The end point of that process was the recruitment of a new CEO who in that particular instance, was a transformative figure and was able to take the hospital to higher levels of quality. I expect the same kind of process to occur here." 

Wednesday's shakeup is just the latest in what has been ongoing upheaval in upper management at the hospital 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 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 organization chart from 2022, the last previous restructuring, showed at least 21 executive positions, including the CEO. That has recently been whittled down to 10 executive positions, including the CEO. 

Only one other hospital in the province is being run by a supervisor appointed by the province: Renfrew Victoria Hospital, near Ottawa. There, a review found "concerning financial practices" that led to the appointment in May. 

Supervisors can fire boards of directors and senior administrators, as well as make service cuts, in order to balance hospital budgets.