Effingham Hospital CEO Norma Jean Morgan retires abruptly
Norma Jean Morgan retired abruptly as CEO of Effingham County Health System, as the hospital undergoes a reorganization in which several other executives were terminated.
Rick Rafter, chairman of the hospital authority and Springfield lawyer, said Morgan agreed to retire at a board meeting on May 24.
Her retirement took effect on May 25. She was making $310,600 a year.
"The hospital is going through restructuring," Rafter said. "She agreed to retire."
When asked if Morgan was forced to retire, Rafter said, "No. Because of changes in the organization, she decided to retire."
Morgan did not return phone calls seeking comment.
The hospital issued a news release the afternoon of May 25 that said, "Mrs. Morgan will be missed by her employees, patients and nursing home residents."
Her departure comes after several important executives at the health system were fired in recent weeks.
Tammy Mims was terminated as chief operating officer and Mary Pizzino was terminated as chief information officer, Rafter said. Mims made $180,300 a year and Pizzino made $113,500 a year.
Michael Murphy, Effingham Hospital's strategic business liaison and occupational medicine manager, also was let go, he said. Murphy is Morgan's brother-in-law, Rafter said. Murphy made $73,500 a year.
Murphy's wife and Morgan's sister, Marie W. Murphy, continues to work with the health system's Occupational Medicine Department in Port Wentworth, Rafter said.
The changes are part of the hospital restructuring and getting ready to reorganize as a 501(c)3 non-profit, Rafter said.
"We're cutting out duplication and restructuring to be more efficient," Rafter said.
A public hearing on the reorganization is set for July 5 and the change would take place in October, he said.
Rafter said Fran Baker-Witt, who has been chief transformation officer at the hospital since Jan. 6, will be interim CEO. He said the hospital authority will search for a new CEO but he doesn't know yet how or when that will occur.
He said Baker-Witt will be considered for the permanent position.
When asked if any additional personnel changes are being considered, Rafter mentioned the CEO search and said the hospital is looking for a human resources manager.
Banana pudding
It isn't the first time Morgan has left the hospital abruptly.
Morgan spent 22 years at the hospital in 1970s and '80s, eventually working her way up to the top position. She resigned unexpectedly in October 1995 when hospital authority members told her to quit or be fired.
At that time, hospital officials said Morgan's mismanagement and financial irresponsibility caused checks to bounce and resulted in other problems.
Patients at the hospital's nursing home complained of cold meals and about sitting on bedpans for 39 minutes because of an apparent staff shortage, state inspectors said in a report.
The nursing home's dietician at that time said Morgan routinely used staff on duty to prepare food for personal parties, including have them make banana pudding for a church dinner she was attending.
During months of turmoil that followed her resignation, staff positions were eliminated and layoffs were announced.
Morgan denied the allegations of mismanagement and financial irresponsibility and later received $70,000 for an out-of-court settlement of a breach of contract lawsuit.
Morgan served as the director of Medicaid aging and community services in the Georgia Department of Community Health from 2000 to 2005.
She was re-hired as administrator of Effingham Hospital by a 3-2 vote in November 2005.
In the news release issued May 25, Rafter praised Morgan's leadership to modernize the health system and to open 52,000 square feet of new clinical space in 2012.
"A state-of-the-art critical access hospital is now available for the citizens of Effingham County because of her vision," the release said.
Rafter has said Effingham Hospital is in much better financial shape than many rural hospitals in the state.
He said the hospital was $100,000 in the black last year, despite $12 million a year in uncompensated care. That's because the county gives the hospital $3.6 million in tax money each year.
And Rafter credited good management as helping the hospital's bottom line.