Members of an Ontario hospital board who a legacy donor claimed made “bizarre and costly” decisions have resigned en masse.
David Musyj, supervisor at London Health Sciences Centre (LHSC), said in a statement Wednesday the entire board decided to step down “voluntarily.” Musyj has acted as the interim CEO of the hospital, and said in a separate statement the provincial government has appointed him to the supervisor role.
“The board has shared their gratitude to Team LHSC for their continued commitment to our patients and this community. They offer their full support of this appointment to Supervisor and LHSC’s path toward sustainable transformation,” he said.
“This decision allows LHSC to move forward confidently under the guidance of a supervisor, ensuring that the focus remains on ensuring the highest quality of care is delivered in our community.”
LHSC under financial scrutiny for years
In a letter dated July 16, legacy donor Ronald Breen, who once served on the board of directors, wrote to the organization saying the current board “does not have a governance regime” and has “lost its way.” He said he would cease his $1-million legacy pledge to the hospital foundation upon his death if changes were not made.
“I have keenly observed, in horror, a financial disaster in the making,” Breen wrote in the letter.
He said seven years ago, the organization had over $200 million in working capital, which is calculated as a measure of current assets minus current liabilities. Now, LHSC has projected an “unprecedented” $150-million operating deficit for 2025 on top of deficits in 2023 and 2024.
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“Over the last three years, you’ve got to an unimaginable amount of $275 million worth of deficit,” Breen said in July.
Breen’s letter was the latest blow to the organization, which — in concert with repeated CEO turnover — has faced increasing financial scrutiny in recent years.
The revolving door of CEOs began with Dr. Paul Woods, taking over from Murray Glendinning, who retired in 2018. Woods faced challenges with morale among front-line staff during the second wave of the COVID-19 pandemic in late 2020, with one nurse arguing that the administration failed to properly prepare and then tried to shift blame to front-line workers once cases among staff ballooned.
Woods weathered that storm but was ousted in January 2021 following controversy over his stateside trips amid the height of the COVID-19 pandemic. That prompted a wrongful termination lawsuit, as well as the resignation of the then-chair of the board of directors and the departure of two executive vice-presidents. The lawsuit was resolved in spring 2023 before it was set to go to trial.
Dr. Jackie Schleifer Taylor filled the role on an interim basis before being appointed president and CEO in November 2021. Two years later, she took a leave of absence “due to a health matter.” However, the announcement came two weeks after the London Free Press reported that the Ministry of Health had launched an investigation into two international trips for executives and one planned trip that was then scrapped, totalling $470,000.
Dr. Kevin Chan, corporate medical executive, was then appointed acting president and CEO of LHSC until Musyj was brought in this May.
‘I am not here to make decisions in isolation’
Earlier this month, LHSC announced $14 million in staffing cuts. The hospital network eliminated 59 positions and reassigned 71 others.
When he was brought in, Musyj said he wanted to bring “some stability” to the organization. On Wednesday, he said his work continues but that he will not be making decisions in a silo as supervisor of LHSC.
“I am not here to make decisions in isolation. I am here to work hand in hand with the exceptional leadership already in place at London Health Sciences Centre. We are leaving no stone unturned,” he said.
“The new executive team and the medical advisory committee are integral to the hospital’s success, and their insights and expertise will continue to be central to our strategy moving forward. As always, I am at LHSC to listen and support frontline staff and the exceptional care they provide our patients and community.”
Musyj added he is establishing a community advisory committee to help steer the hospital out of turmoil.
“The success of London Health Sciences Centre depends on all of us — staff, patients, community members, and leadership — working together towards a common goal,” he said.
“I am committed to doing everything in my power to ensure that we continue to thrive, to innovate, and to provide the best possible care to our community.”
— with files from Jacquelyn LeBel
