RENO, Nev. (KRNV & Mynews4.com) - The Renown Health Board is hoping to put an end to what has been a tumultuous time at the hospital by announcing major management changes. Four of the hospital's top managers have stepped down, effectively immediately. Among them, Renown president and CEO Jim Miller.
"He was upset but he understands," said board chairman David Line about Miller's reaction to the news.
Under Miller's watch, the Federal Trade Commission and Nevada Attorney General investigated Renown for forming what amounted to a monolopy on cardiology care by acquiring Sierra Nevada Cardiology and Reno Heart Physcians, the area's two largest cardiology groups.
Under the terms of a settlement Renown reimbursed the Attorney General for $550,000 in legal bills, and has been ordered to inform both the FTC and Attorney General about any future deals or acquisitions involving cardiology care.
As News 4 uncovered in a recent Fact Finder investigation, Renown was warned by the FTC not to move ahead with those deals in the first place and did so anyway.
David line, the chairman of the Renown Health Board, blamed Renown's lawyers for not getting critical information to the board.
The FTC sent a letter to our general counsel," Line said. "We were not given all the information we needed and had we gotten that information other decisions could have been made."
Renown later paid out nearly five million dollars to the caridologists who sued, claiming Renown changed their contracts without telling them.
Line again blamed Renown's attorneys for dropping the ball.
"We hired outside counsel to put those contracts together. That did not happen," Line told News 4.
Line says changes are in place to improve communication and ensure that the board is informed from here on out.
"Its frustrating because lots of time and dollars have been spent." Line said about Renown's recent legal battles.
Renown did not waste any time appointing a new interim CEO. His name is Donald Sibery. As for Jim Miller, the former CEO, he has one year left on his contract. Renown officials told News 4 that Miller will paid for that remaining contract year. His salary is $916,000 a year.