On Tuesday, Dec. 12, the Lander County Hospital District Board of Trustees held a special session inside the John Peters Health Services Center boardroom where they discussed the settlement for former Chief Executive Officer (CEO) Bryan Hargis.
Hargis’s attorney, James Burr Shields, countered the hospital board’s original settlement offer. He proposed an $85,000 settlement, which would be payable within 15 days, upon the board’s agreement.
Shields emailed the board, noting that Hargis’ employment agreement stated he was entitled to certain damages in the event of a no-cause discharge, including:
1. Six months of severance pay: $92,500
2. Any unused vacation (13 days, or $9,250)
3. Six months COBRA insurance, equal to $5,400
Ultimately, Shields informed the board that Hargis would agree to resolve all claims in exchange for $115,150, to be paid within 10 days of an established agreement — over $30,000 more than the initial settlement offer.
“This would end all litigation and wash our hands of Bryan Hargis,” stated board chairman James Matheus.
“I’m a little bit grumpy that he went from $107,000 to the $115,000,” Nancy Lockridge said, “I don’t think it is right that he pushed for the extra money, when he submitted a [lower] previous settlement request.”
“Hargis put down $3,000 in unreimbursed expenses for moving expenses — but those are not legitimate moving expenses, because they are a couple of round trips he made to Arizona,” explained interim CEO Kathy Ancho, “Quite frankly, I would like to see the board make a motion and see what (District Attorney) Hy Forgeron can negotiate down [in] the settlement.”
Board members disagreed with paying for Hargis’ COBRA insurance and did not believe the hospital should be responsible for the moving expenses for the trips Hargis made while CEO of Battle Mountain General Hospital.
The board voted to approve to pay Hargis $107,000, the settlement amount approved in the previous hospital board meeting on Nov. 13. They will have Forgeron try and negotiate down to that number with Hargis’s attorney. Not all board members agreed with the decision, however. Dave Mason gave the lone dissenting vote on the matter.
Board members mentioned that they are looking forward to ending their contact with Hargis and introducing new CEO Jason Bleak on Jan. 15. Interim CEO Kathy Ancho will remain for a time to act as an adviser for Bleak while he transitions into the new position.
