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February 10, 2004Some see NMH's corporate board cut as positiveOversight is in hands of board of trusteesByRecord-Eagle staff writer PETOSKEY - Northern Michigan Hospital's recent elimination of its corporate board of community members further isolates the facility from public scrutiny, critics argue. But hospital management and even some former corporate members support the move as a means to limit potential liability. The corporate board consisted of 105 area business leaders. "We gave essentially no input, but were able to go to the annual meeting, listen to the annual report, ask questions and get some kind of answers," said Dr. Sanders Frye of Harbor Springs, a retired doctor and chief of staff from the hospital who served on the corporate board. Corporate board members by a consent resolution agreed late last month to change the hospital's articles of incorporation from a membership to a directorship corporation, based on NMH's recommendation. The move essentially ended the corporate board and put oversight and decision-making authority fully in the hands of the hospital's board of trustees. Frye said he's concerned the change trims the number of people monitoring hospital activities, and furthers a "bunker mentality" management style trustees developed during a 15-month nurses strike. "I think they do owe the community that's supported this hospital answers to their financial questions," he said. "The medical aspects of this hospital are first-class. I would like to know if the financial condition is in the same position. But I'm not going to find that out, and neither is anybody else." NMH president and CEO Thomas Mroczkowski said the move will improve the efficiency of hospital management, as well as eliminate potential liability for corporate board members. "We value their ongoing support, and will be reviewing new and better ways for community leaders to be involved in the activities of the hospital," he said. Ted Iorio, attorney for Teamsters Local 406, the union representing striking nurses, said: "The limited transparency that NMH had has been significantly diluted." Former corporate board member Seberon Litzenburger of Harbor Springs supported and voted for the change. Potential corporate board liability was a legitimate concern in an age of increased litigation against hospitals, he said. "The corporate members were pretty much a figurehead organization, anyway," he said. "We'd get together once a year and pretty much affirm whatever it is the hospital administration was doing. I don't think (it) is going to affect the operation of the hospital at all."
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