The New Hampshire Department of Justice's Charitable Trusts Unit has concluded that North Country Healthcare (NCH) breached its fiduciary duties when it terminated Weeks Medical Center President Michael Lee in 2024, according to a report released last week.
The review examined five areas, including the handling of Dr. Elizabeth Cooley's departure, board composition changes, contracting practices, board turnover, and executive compensation. The unit found no legal violations on those other issues.
Among the mandated corrective actions: NCH must appoint an Independent Board Governance Consultant selected by the Department of Justice, recruit new members for the Weeks Medical Center board, and hold public listening sessions over the next year.
"Ongoing communication with stakeholders within our nonprofit healthcare systems, together with full compliance with charitable trust laws, is critical to maintaining public trust," Attorney General John Formella said in a statement. "NCH must work diligently with the Independent Board Consultant to prove to the North Country community that NCH is committed to improving relations with the affiliate boards and the community."
The report found that NCH's board and management "breached their fiduciary duties insofar as they failed to follow the appropriate bylaw process" for terminating Lee and for not recruiting a permanent replacement.
NCH CEO Tom Mee acknowledged the findings and said the organization takes the requirements seriously. NCH will reimburse the state $75,000 for the cost of the review.
NEK will be looking into whether the board governance consultant's recommendations will prioritize community input or management efficiency.
Photo: Joanna Oltman (Wikimedia Commons, Public domain). Photo is illustrative and not from the scene.
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