Fairview Health Services not renewing President and CEO Mark Eustis

The board of directors made the surprise decision Wednesday night to let Eustis' current five-year contract expire at the end of July. The move comes amid an investigation into a controversial consulting firm for its aggressive debt-collection practices at the Minneapolis-based hospital. Board chairman Chuck Mooty will take over as interim CEO starting in August.

Author:: BMTN Staff
Updated:: Mar 8, 2018
Original:: May 24, 2012

The board of directors made the surprise decision Wednesday night to let Eustis' current five-year contract expire at the end of July. The move comes amid an investigation into a controversial consulting firm for its aggressive debt-collection practices at the Minneapolis-based hospital. Board chairman Chuck Mooty will take over as interim CEO starting in August.

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The health care system felt it was necessary to cut its ties with the debt collector. Minnesota Attorney General Lori Swanson accused Chicago-based Accretive of using high-pressure strategies to get Minnesota hospital patients to pay for their treatments. The Business Journal reports Fairview began reducing its contract with the collection firm after a laptop with unencrypted patient information was stolen. Meanwhile, a Democratic Congressman from California is now calling for a federal investigation.

The aggressive practices used by the Chicago-based Accrective Health to collect debt from patients could put Fairview's University of Minnesota Medical Center at risk of being terminated from Medicare and Medicaid, according to the Star Tribune. Federal documents obtained by the newspaper show patients and their relatives were subjected to "abuse and harassment'' from debt collectors while waiting for treatment.

Minneapolis-based Fairview Health Services is making construction plans after freeing up cash from the recent sale of its Red Wing Medical Center to the Rochester-based Mayo Clinic. Finance & Commerce reports major construction projects appear to be in the works for Southdale Hospital in Edina and Ridges Hospital in Burnsville.

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Kenneth Aubrey has been terminated from the St. Paul-based software company effective immediately. Kris Tufto, an Image Sensing board member, was named interim CEO. Michael Doyle, a company director, also resigned from the board in protest of Aubrey's termination.

The Bloomington location will begin operating as a Fairview clinic this month. The Minneapolis clinic, which was destroyed by fire earlier this year, will re-open as a Fairview clinic in the spring.

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