Allegations and Accountability

Cedar County Memorial Hospital’s Governance Crisis

by Melanie Chance

Cedar County Memorial Hospital is currently navigating a complex legal and governance situation that has sparked significant discussion within the community. Central to this controversy is Dr. Russell R. Kemm, a local physician who has initiated a defamation lawsuit against several members of the hospital’s Board of Trustees. The lawsuit targets Board President Marvin Manring, Vice President Michelle Leroux, Board Members Melissa Gallette and Katie McGee, and former Board Attorney Janae Graham, who resigned in August.

Dr. Kemm alleges that these board members made false statements about his conduct, damaging his professional reputation and career. This lawsuit has prompted a broader conversation about trust and accountability within the hospital’s governance system.

Court records suggest that the situation intensified when James Delmar Bender Jr. sent a letter to the board accusing Dr. Kemm of misconduct related to his wife, Courtney Bender, a hospital nurse. Following this letter, the board launched an internal investigation, raising critical questions about the evidence that prompted such action and whether the investigation was warranted. Community members are now speculating whether the board acted out of a genuine desire to maintain public trust or if other motives were at play.

Dr. Kemm’s legal representative argues that the board’s actions may have been malicious, suggesting they jeopardized his career without sufficient justification. This situation opens the door for discussions about the ethical responsibilities of board members and the importance of thorough investigations into allegations that affect both the board and staff.

Community concerns extend beyond the lawsuit, particularly regarding CEO Terry Nichols’ financial practices. Many residents have expressed dissatisfaction with the hospital’s current governance and are questioning how his leadership may have contributed to the current crisis. Secretary/Treasurer David Bozarth has come under significant public scrutiny after admitting to the unauthorized release of sensitive information. This situation has prompted former board attorney Graham and fellow board member McGee to call for his resignation. Concerns have also been raised regarding the board’s bylaws, particularly since a second board attorney and other board members have supported Bozarth’s actions.

If the evidence was strong enough for the board to investigate Dr. Kemm, why were not all board members included?

Frustration among residents has grown, particularly after the board decided to limit public comments at meetings and stopped live-streaming sessions. Local citizens have voiced their concerns about the effectiveness of board meetings, which are intended to foster open dialogue. Reports from a recent December board meeting indicate increasing tensions, highlighted by confrontations between two board members.

Opinions within the community are deeply divided. Some residents support the claims against Dr. Kemm, asserting that the board is acting in the hospital’s best interest, while others are calling for a fair and thorough investigation before drawing conclusions. This division speaks to broader issues of trust not only in healthcare providers but also in the governance structures that oversee them.

Dr. Kemm is seeking $10 million in damages in his lawsuit, citing emotional distress and future medical expenses. His attorney has requested a jury trial, which emphasizes the seriousness of the accusations.

As this situation unfolds, essential questions arise regarding both Dr. Kemm and the board’s responsibilities:

• How does the board plan to improve transparency and governance to regain community trust?

• What specific actions or conduct of Dr. Kemm prompted the allegations made by James Delmar Bender Jr.?

• How does Dr. Kemm plan to address the community’s concerns regarding his professional conduct as the lawsuit unfolds?

• How is Dr. Kemm preparing to navigate the public scrutiny surrounding his professional reputation in light of the ongoing legal battle?

• What impact does Dr. Kemm believe the allegations will have on his career going forward, and how does he plan to mitigate any potential damage?

• Who authorized the hiring of two board attorneys, what is their purpose, and how much was being spent on them? What is the rationale for two board attorneys in a rural hospital, and how does this affect the board’s decision-making?

• Given that Bozarth has admitted to disclosing sensitive documents to the media without facing repercussions, and with both board attorneys opposing one another on the bylaws, how can the community be assured that Bozarth will not engage in similar actions in the future? What measures will the board implement to ensure accountability and uphold the integrity of its governance practices?

• What impact do Terry Nichol’s leadership decisions have on the current legal and governance challenges faced by the hospital?

• What oversight mechanisms are in place to evaluate the effectiveness and ethics of Terry Nichol’s management practices?

• What specific financial practices or decisions by CEO Terry Nichols have raised concerns among board members and the community?

• Is hospital video footage from the December board meeting available, and were law enforcement deputies called to manage the situation? Reports suggest that a patient overheard and witnessed confrontations between two board members that escalated into one board member physically pushing the other, resulting in the second board member’s arm getting lodged in the door. Once she freed her arm, it was reported that the first board member locked the door and repeatedly yelled for her to ‘resign.’ If these reports are accurate, what measures are being implemented to address this behavior?

As the controversy continues to unfold, community discussions are rife with speculation regarding Dr. Kemm’s future at the hospital. Many residents believe his tenure may conclude in January.

The board currently finds itself at a pivotal moment in its governance. By demonstrating a commitment to community involvement and transparency, the board has the opportunity to address these pressing issues, including the leadership of Terry Nichols, and begin restoring trust among residents. As this story develops, the focus remains on uncovering the facts that matter most to the community, ensuring that the voices of Cedar County are heard in the discussions surrounding the future of their healthcare services. Be sure to subscribe to the El Dorado Sun to know more about this developing story.