Posted 1:36 am Friday, February 10, 2012
Fourth Total Healthcare CEO Quits
By DAYNA WORCHEL
Staff Writer
Staff Writer
The chief executive officer of a nonprofit Tyler health clinic, whose board members have been locked in a legal battle with the Texas Attorney General's Office, resigned her position last week after holding the job for less than one year.
The attorney who represents Total Healthcare Center, Lindsey Birdsong, confirmed on Wednesday that Stephanie Jones Theaker, the fourth CEO that the clinic has had in four years, tendered her resignation to the clinic's board of directors last week.
"As you might guess, they were very disappointed," Birdsong said in an emailed statement. Numerous attempts to reach Ms. Theaker and Pamela Phoenix, chairwoman of the Total Healthcare board were unsuccessful on Wednesday and Thursday.
Ms. Theaker replaced former Total Healthcare CEO David Young in June after the board of directors unanimously voted to terminate him in 2010. He had served only eight months as the CEO of the organization when he was terminated.
The departure of the CEO marks the latest in a series of events, some relating to legal issues, which involve the administration and some of the board members of the clinic. Birdsong said on Wednesday that he was unaware of any other administrative departures at the clinic.
The attorney general's office filed a lawsuit in Travis County Sept. 7 against Total Healthcare and its board of directors, alleging violations of the business organization code, common law breach of fiduciary duty and grossly negligent mismanagement.
The lawsuit cited findings in a report by the U.S. Department of Health and Human Services Health Resources and Services Administration. The report included allegations of mismanagement of the clinic's funds and theft from the organization by Bennie Webster, who is a former chairman of the Total Healthcare board. Ms. Webster, who still serves on the board, and the other members of the board have said all allegations are false.
In October, Ms. Phoenix replaced Ms. Webster, who had served as chairman of the board of the clinic since its inception in 2006. Ms. Theaker had said then that the election of Ms. Phoenix was the result of the board's annual elections and was not related to the ongoing legal issues.
The Texas attorney general's lawsuit is in response to a Sept. 2 lawsuit filed by Total Healthcare in Smith County, after Texas attorney general's office representatives attended a Total Healthcare board meeting Aug. 23. At the meeting, officials made accusations without providing explanations or any other supporting documentation, according to the petition.
The Texas Attorney General's lawsuit alleges that under the leadership of Ms. Webster, the clinic suffered serious organizational instability and operational problems. The health administration report also stated that because Ms. Webster has been with the organization since its inception, she should resign to give others on the board a chance to share leadership responsibilities.
Robert Davis, a Tyler attorney representing the Total Healthcare board, filed an amended petition in Smith County 241st District Court October, stating that former executive director, David E. Young, breached his fiduciary duty to Total Healthcare by sabotaging negotiations between Total Healthcare and Trinity Mother Frances. Young also has denied those allegations.
Tom Kelley of the attorney general's office said on Wednesday that he could not comment on any pending litigation, but said that the attorney general is contesting any jurisdiction for the suit in Smith County.
"We are hoping to proceed in Travis County," he said in a statement.
Total Healthcare provides medical and dental care for underinsured and uninsured patients, serving individuals from 13 counties. The center received its federally qualified health center status in 2007, officially separated from Northeast Texas Public Health District in 2008 and began operating as Total Healthcare Center in 2009, when it consolidated multiple clinics into one building.
