Former St. Francis CEO Robert Granger surfaces as finalist for Texas job

Former St. Francis Hospital president and chief executive officer Robert Granger has surfaced as a candidate for a similar position in Texas, according to a published report in the Victoria Advocate.

Granger left St. Francis in March as the hospital was dealing with a nearly $30 million financial mess that he termed an accounting inaccuracy when it was announced last November. The shortfall has led the Board of Trustees to explore options that include the sale of the hospital. LifePoint Health of Brentwood, Tenn., is currently looking at purchasing St. Francis.

Granger, one of three finalists, according to the newspaper, interviewed at Citizens Medical Center in Victoria on Tuesday.

He did not return a Wednesday afternoon phone call to his cellphone from the Ledger-Enquirer.

Granger met with about 60 Citizens Medical Center employees and outlined his reasons for leaving Columbus and his qualifications, according to the report.

“Although St. Francis has a history of community-oriented work, the hospital has recently decided to partner with a for-profit company,” he said, according to the Victoria Advocate.

The decision inspired him to move on to another, more community-oriented position, he reportedly told the group.

Granger spent nearly 10 years at St. Francis and told the Citizens Medical employees that he was proud of his work there.

“I’m very thankful for the time I spent there,” the paper reported Granger as saying. “We did some amazing things, but I’m ready for the next chapter in my life.”

The last chapter is still not over for St. Francis.

After the St. Francis’ issues came to light in November, the hospital eliminated 80 jobs — 65 of them filled with employees — Nov. 20.

Granger, a chief financial officer at Sacred Heart Health System in Pensacola before joining St. Francis, pointed the responsibility for the inaccuracy at former Chief Financial Officer Matt Moore, who had been with the hospital for nine years and had previously worked with Granger at a South Florida hospital. Moore was suspended Oct. 27, 2014, and “permanently relieved of his duties” Nov. 14, Granger said last fall.

Granger and the board of trustees had been operating for at least three years with reports that overestimated the hospital’s revenues and underestimated its expenses by $29.7 million, Granger previously said.

While Granger and the board thought the hospital was operating at a point that was break-even or better, it was actually losing money, he said.

The corrected financial information released in November showed that St. Francis was operating at a $12.8 million deficit for 2014.

Rumors of St. Francis’ issues started more than a year ago.

In July 2014, Granger was questioned by the Ledger-Enquirer about the hospital’s financial status after an email circulated throughout the community claiming that some vendors were not getting paid in a timely manner.

Granger repeatedly denied it and responded with a July 24 memo to his board that stated: “Clearly someone in the area has an agenda to smear our good name, and it is quite disappointing that an individual has chosen to do this. We will continue to operate as normal and enjoy the high road. The view is much better from there.”

A recently completed audit of St. Francis by U.S. Department of Housing and Urban Development and the Office of Inspector General pointed out a number of issues. They included: the hospital “submitted inaccurate financial information, improperly disbursed mortgage proceeds, incurred an unauthorized liability, and subjected mortgage funds to bank sweeps.”

The audit report initiated by HUD and its Office of Hospital Facilities paints a picture of a Columbus hospital that severely lacked financial oversight. It said management failed to put in place “adequate controls,” “internal controls” and “written policies and procedures” to make sure the hospital’s $210 million mortgage insured by HUD was administered properly under federal regulatory requirements.

There was nothing in the Victoria Advocate article about St. Francis’ issues.

“He spent almost 10 years as CEO at St. Francis Hospital in Columbus, Ga., where he led a financial overhaul, increasing the hospital’s market share by 48 percent, Granger said,” according to the report.

The newspaper also reported that Granger said he would welcome all staff to come to him with their problems as soon as possible if he were hired.

“Bad news doesn’t get better with age,” Granger said.

A number of St. Francis employees and physicians, using their Facebook accounts, have commented on the Victoria Advocate website. Most of those comments urge Citizens Medical Center to do their homework and dig into Granger’s background.

Citizens Medical Center Board Chairman Donald Day did not return a call.

Citizens Medical Center has had its own issues. The hospital settled a recent whistleblower suit with three cardiologists and the U.S. Attorney General’s office in April for $23.55 million.

The hospital agreed to pay the federal government $21.75 million for violating the False Claims Act by engaging in improper financial relationships with referring physicians. The whistleblower suit was initiated by three cardiologists.

This story was originally published September 16, 2015 at 4:22 PM with the headline "Former St. Francis CEO Robert Granger surfaces as finalist for Texas job."