Insurance change means end of hospital boards

A three-member board was appointed to take over responsibilities.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- The effects of Sept. 11 and some well-publicized corporate scandals caused the St. Francis Hospital board of directors to disband.
The board officially dissolved Thursday after learning that a change in liability insurance would have left the members personally liable for any problems, members said. Board members at St. Francis Hospital in Cranberry and the St. Francis Health System in Pittsburgh also resigned.
"Certainly their time, talents and treasures were very much appreciated and their devotion to the hospital and the health system ... we are eternally grateful for. But you just can't have these people be personally liable," said Shirley Freyer, a health system spokeswoman. She said it's unlikely that another insurance carrier would provide coverage for the board.
New board
A new three-person board will now oversee the duties of all three boards. Members are: Sister Ann Carville, chairwoman of the Sisters of St. Francis of Millvale, the system's sponsoring body; James Murdy, chairman of the previous health system board; and the Very Rev. Lawrence A. DiNardo of the Diocese of Pittsburgh.
Health system officials said it is common practice to request or accept the resignation of board members in these circumstances.
"We just couldn't stay on the board as volunteers. You expose yourself to a liability. We still love our hospital and will still try to do that public service," said Joe Lambo of Neshannock Township, who has served as chairman of the St. Francis Hospital of New Castle board for the last three years.
Lambo said he would consider serving on an advisory board for the new management team if asked. Liability insurance would not be necessary because they would have no decision-making capacity, he said.
The board of directors was responsible for instituting new policies, approving new members of the medical staff, reviewing quality of care and financial statements for the hospital, he said.
Insurance carrier's decision
Thomas Shumaker, a 25-year member of the hospital board, said hospital upper management told the board that effects of the Sept. 11 terrorist attacks, recent problems at Enron and other corporate giants as well as the fact that St. Francis Health Systems talks to merge with others contributed to the insurance carrier's decision not to provide liability coverage for the boards of directors. Shumaker did not name the carrier.
Freyer said the decision to disband the board of directors should have no effect on day-to-day patient care.
In addition to Lambo and Shumaker, the New Castle hospital's board of directors included Paul Lynch, Dr. Joseph Fusco, Sister Pat Fogle, Sister Ann Bremmer, Sister Coleman Conroy, Don DeCarbo, Dale Duboskas, the Rev. John Petrarulo, Eleanor Snyder, Richard Veri, Arthur Zarone, Dr. A.J. Elisco, Dr. Timothy Graham and Connie Alberico.