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Medical system board shake-up

UM chair, 9 others resign over dispute

interim CEO named

August 21, 2008|By Laura Smitherman , Sun reporter

Some board members - including Erickson and James F. Pitts, a vice president at Northrop Grumman Corp., said yesterday that they disagreed with what they perceived to be a shift in board governance that would diminish the body's effectiveness. Both resigned yesterday.

Erickson, founder of Erickson Retirement Communities, said O'Malley's move to install his own board nominees would lead to "short-term political thinking" by the board rather than long-range planning. "When you pass that decision to someone in Annapolis, I don't think that's the best process," he said.

He added that some of the board's problems lie in tensions with the university representatives, who want more influence over picking the new leadership and believe their capital projects should get priority when the board allocates funding. "If you look at the history of medical systems across the country, a huge number of failures come from a lack of independence on how you allocate capital," Erickson said.

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University System of Maryland Chancellor William E. Kirwan said he disagreed with Erickson's take as "a misrepresentation of what has taken place," and that he knows of no complaints made about capital allocations.

Former state Sen. Francis X. Kelly, a longtime board member who was instrumental in getting legislation creating the medical system approved in the 1980s, said the medical system's leadership had lost sight of its mission of working with the medical school. He said the "impasse" that had developed with the doctors was an untenable situation. He said O'Malley had to intervene because the situation was "disintegrating."

"Some people feel this was a state takeover, but that is simply not the case," Kelly said. "The governor is a hero because he appointed people who understand the proper mission of the medical system as it was set up."

laura.smitherman@baltsun.com

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