Background
What if your arrived as new leader of Nashville's largest hospital expecting a successful organization. What if you then discovered apparent corruption, tens of millions in losses and a toxic culture created by your predecessor?
That was the truth I saw in October, 1998 as new President and CEO of Baptist Hospital System.
Over two decades have passed since Nashville's largest hospital underwent the nightmare of near bankruptcy under a longtime leader some described as misguided or dangerously malevolent.
The story of former Baptist Hospital System's David Stringfield and its flagship's terrifying problems was briefly covered then. Scandal makes good copy. But some untold facts are more riveting.
At 81 and before it is too late, I decided, as Stringfield's successor, to reveal important secrets about what I believe destroyed the identity of a proud hospital and the stunning recovery that almost saved it. Before Baptist changed hands and after Stringfield was ousted thousands of dedicated caregivers and their leaders pulled off a miracle.
"King David's"Disaster
On July 3, 1997 Nashville Scene headlined a shocking story, "King David - Power and Paranoia at Baptist Hospital."* The essay by investigative journalist Willy Stern featured (the late) David Stringfield, President & CEO.
It was a devastatingly negative portrayal of the person I would soon replace and questioned the financial viability of the hospital. It was extensively researched and, sadly, turned out to be remarkably accurate.
I never saw the story until it was too late. Thus, in 1998, I was optimistic on my first day as Stringfield's replacement.
Nashville Scene's article had been a thunderbolt. If true, it contained numerous warning signs. The attacks on Stringfield's quirky personality were one thing. But the assault on the hospital's stability startled anyone who read the story.
"For four years Baptist has been the focus of an ongoing Internal Revenue Service audit that could result in the revocation of Baptist’s tax-exempt status," the story reported. "Documents filed in U.S. Tax Court last year say IRS officials conducting an audit at Baptist “reviewed evidence that indicated that the hospital failed to operate exclusively for charitable purposes and that portions of the hospital’s net earnings inured to the benefit of private individuals.” (emphasis added.)
"The same documents stated that 'such facts, if established, would cause the Hospital to fail to qualify for tax-exempt status.'”
The paragraph held another shocker: "The documents were filed in U.S. Tax Court as part of litigation resulting from an audit of David Stringfield, not the hospital."
What did the audit say? We never found out. Stringfield's lawyers managed to keep that quiet. Was the hospital suffering from epic mismanagement at best and criminal behavior at worst?
"Skeletons in the Closet"
"Don't worry," new board chair Stringfield told me, "When you get here, you won't find any skeletons in our closet. Instead, we're going to report a bottom line of $10 million dollars."
He was $83 million off! Worse, Baptist Hospital System was littered with "skeletons."
Stern had been right. If anything, he had underestimated from the outside the trouble I found inside...
Part II Continues soon
-Erie Chapman
*Screenshot of Nashville Scene article. To see the full content of the original article go to: https://www.nashvillescene.com/news/king-david/article_0f38532d-cc94-5624-8ff1-99af1a9bdc2c.html
Disclaimer: Erie Chapman Foundation, supports Radical Loving Care in healthcare and the arts and supports the general, though not necessarily the specific, content of this article.
