More Palos Community Hospital Board Members Step Down

Two more board members at Palos Community Hospital are out, after a turbulent stretch for the non-profit hospital.  

Board members Carole Ruzich and Thomas Courtney resigned this week. Ruzich sat on the board of the hospital's parent company St. George Corp., and Courtney was one of 12 on the hospital's board, Crain's Chicago Business reports. Ruzich also serves as a trustee for the Village of Orland Park.

The recent resignations ups the total to five since February, following the abrupt departure of CEO Edgardo Tenreiro in January.

The hospital came under fire earlier this month, when disclosure issues regarding board member Lynn Egan came into public light. 

Egan, also a Cook County judge, has served on the board of the hospital’s parent company St. George, and on Palos Community Hospital’s executive board committee, for 15 years.

Her brother, Matthew Egan, is a partner in the Chicago-based law firm Pretzel & Stouffer. According to Crain’s, Matthew Egan “represented Palos in at least 15 cases before his sister's judicial colleagues, most of them involving medical malpractice or personal injury.”

Egan maintains that she disclosed her brother’s representation of Palos in an annual conflict statement available to hospital auditors and tax preparers.

The same day that Tenreiro resigned, Greg Paetow, a three-year board member quit for “personal reasons.” A second board member also resigned last month, as did Thomas Barcelona, chairman of the board of parent company St. George Corp., which solicits donations for the hospital, Crain’s reported.

Although neither Judge Egan, her brother nor Palos Community Hospital’s board have been accused of violating the law, the perceived lack of transparency raises questions, especially in light of the sudden departure of four hospital leaders, the Chicago-based Wagenmaker and Oberly law firm opines in its blog.

Wagenmaker and Oberly, which represents regional and national non-profit clients, says non-profit leaders need to be ever mindful of the fragility of an organization’s reputation, especially in our high-velocity information age.

The hospital has appointed Dr. Terrence Moisan as interim CEO, Crain's reports.