Cleveland MetroHealth former CFO still receiving salary despite resigning in June Global Fitness

Cleveland MetroHealth former CFO still receiving salary despite resigning in June

View full sizePlain Dealer file photoMetroHealth Hospital in Cleveland.

CLEVELAND, Ohio Sharon Kelley resigned as chief financial officer for the MetroHealth System in June to work as a consultant to the taxpayer-subsidized hospital, but she remains on its payroll with full pay and benefits guaranteed for up to one year.

The hospital system will continue to pay Kelley a $440,000-a-year salary for six months, plus up to another six months if Kelley has not found another job in that time, according to an agreement obtained by The Plain Dealer through a public-records request.

During the period, MetroHealth will continue her health, dental, vision and life insurance, her vacation pay and contributions to the Ohio Public Employees Retirement System. MetroHealth also agreed to pay Kelley $6,000 in lieu of outplacement services. Kelley, in turn, is required to keep the deal confidential.

View full sizeMetroHealth SystemFormer MetroHealth CFO Sharon Kelley.

MetroHealth said the value of Kelley’s salary and benefits would be $517,878 for a full year.

Two Republican members of the Cuyahoga County Council are questioning the cost of the agreement at a time when hospital chief Mark Moran has outlined to the council financial challenges facing the system, including declines in patient stays.

“This kind of money — is it money better spent on her and for her situation or better spent on the indigent?” said Councilman Michael Gallagher.

The agreement says Kelley must provide consulting services up to 100 hours a month to “address issues important to MetroHealth,” but it otherwise does not outline her duties.

“I don’t know what you make of what her duties are,” said Councilman Dave Greenspan, who said he was surprised to learn Kelley is still a hospital employee.

Asked about Kelley’s responsibilities, the hospital system said in an email, “She has proposed a specific list of items to Mark Moran” and is working on Medicaid issues.

“Her work here will allow for continuity and a smooth transition while we are changing executives,” said an email from Phyllis Marino, vice president for market development.

Marino compared the contract to a severance package. “Most companies that pay severance to their high-level executives include their previous benefits to keep them whole,” she said. “This is a standard industry practice, and we have received advice on this from our salary consultant and executive recruiters.”

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Kelley declined to comment.

Kelley, hired by MetroHealth in 2009, said last month that she was resigning to “go back to the private world.” Moran said at the time that he planned to handle some financial operations and then appoint an interim chief financial officer while conducting a national search.

MetroHealth salaries and consulting contracts have come under scrutiny by the new county government that took office this year. The county provides the health system with an annual subsidy, which was $36 million this year.

County Executive Ed FitzGerald called this month for MetroHealth to award consulting contracts through competitive bidding and to improve transparency, ethical standards and contracting practices.

FitzGerald had no comment about Kelley’s contract, said spokesman John Kohlstrand.

Greenspan has asked MetroHealth for copies of any similar agreements with former employees for the last four years. He also asked MetroHealth to explain a contract provision pertaining to Kelley’s cooperation in any legal or administrative matters. The provision says that after the contract is up, Kelley would not be reimbursed for time spent on “matters for which her allegedly wrongful actions form the basis of the action or claim.”

Marino told The Plain Dealer the language is generic, “used in any such contract and is not just directed towards Sharon.”