Queen’s Park details reason for taking over London hospital as board resigns

Queen’s Park has appointed a supervisor to oversee London Health Sciences Centre’s operations and its “concerning financial performance” amid a mass resignation by its board of directors, a sweeping move that is a “long overdue,” one critic says.

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Ontario’s health minister announced Wednesday that David Musyj, who was seconded from Windsor Regional Hospital and named interim LHSC president in May, has been appointed supervisor of LHSC, the latest shakeup in the top ranks of the region’s largest hospital.

As supervisor, Musyj will report directly to the provincial government and “address concerns regarding hospital governance and operations, and management practices, including concerning financial performance, that were found as a result of a third-party review,” Ontario Health Minister Sylvia Jones said In a statement Wednesday.

Musyj’s supervisory term could last up to 18 months, a spokesperson for Jones said. The final report, which will come at the end of Musyj’s term as supervisor, will be made public.

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A regularly scheduled meeting of LHSC’s board of directors on Wednesday was abruptly canceled Tuesday evening. The hospital announced Wednesday board members voluntarily stepped down from their posts “in recognition of the need for a fresh path for LHSC under new leadership.”

Speaking in a personal capacity, former LHSC board chair Matthew Wilson said the volunteer board put in countless hours “trying to ensure the best course forward for the hospital and our community” and applauded Musyj’s appointment as supervisor.

“This is why, on our own initiative, we first brought Mr. Musyj to London. I support the decision to appoint Mr. Musyj as supervisor, an appointment which I believe will facilitate a quicker recovery for LHSC, and supported the decision to voluntarily resign,” Wilson said in an email Wednesday.

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“I am confident in Mr. Musyj’s ability to ensure a bright future for LHSC and the community it serves.”

In addition to Wilson, LHSC board members Lisa Conley, Andrea Dean, Terry Marcus, Tony Malette, John Leitch, Lisa Harrison, Stephen Smith, Heather Wade, Murray Wallace and Joy Warkentin also resigned from their posts.

While it is unfortunate the situation at LHSC warranted such drastic action from the province, one local health-care critic is hopeful the move will ultimately increase transparency and accountability at the hospital.

“It is long overdue,” said Peter Bergmanis, co-director of the London branch of the Ontario Health Coalition, an advocacy group. “We’ve had a board that has allowed things to escalate and permitted public confidence in the hospital to slide because of various scandals.”

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Musyj will provide “regular updates on his work, leading to a final report that will help restore effective governance structures and practices, improve hospital finances and stabilize operations” at LHSC, Ontario’s Health Ministry said in a statement.

In a statement released by LHSC Wednesday morning, Musyj said he will be “working with the government to strengthen the governance, accountability and ability of our organization to deliver the best care possible to the communities we serve.”

The provincial government, the primary source of funding for hospitals, has broad powers under the Public Hospitals Act to appoint a supervisor to oversee the operations of institutions facing challenges. However, such power is used with discretion.

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In June, the province appointed a supervisor at a hospital in Renfrew, near Ottawa, over “concerning financial practices.” In September 2017, the province appointed a supervisor to Brant Community Health System. The year before, supervisors were appointed to hospitals in Chatham-Kent and Brockville.

In his statement Wednesday, Musyj said he is not going to make decisions about LHSC in isolation and committed to establishing an advisory committee of community members to provide direct feedback on any next steps.

Bergmanis applauded the plan to involve the public in the future direction of LHSC and has confidence Musyj will be an open and transparent supervisor.

“We’re hopeful we will be able to generate some positive solutions that will be heard,” Bergmanis said.

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The appointment of a provincial supervisor comes after significant upheaval within LHSC in recent years.

Under Musyj’s leadership, LHSC terminated 59 managers and demoted 71 others with pay cuts earlier this month as part of its strategy to fix a $150-million deficit in its 2024-25 fiscal year. At the time, Musyj said further job cuts were possible.

Musyj replaced Jackie Schleifer Taylor, who had been chief executive since 2021. Schleifer Taylor went on a medical leave of absence in November 2023, and the hospital announced June 11 she was no longer employed at LHSC.

Under Schleifer Taylor’s tenure at the helm of LHSC, which came after the abrupt termination of Paul Woods over pandemic travel, the hospital moved to severe ties with St. Joseph’s Health Care London and wind down various joint ventures. LHSC also aggressively restructured its top ranks under Schleifer Taylor’s leadership, adding additional roles and terminating longtime executives.

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LHSC’s major deficit comes as spending by hospital brass on travel and salaries attracted significant public backlash. Last fall, The Free Press reported that LHSC sends 16 senior staff and executives to an international hospital conference in Portugal and six executives to the United Arab Emirates. A third scheduled trip to Australia by 11 senior staff was canceled at the last minute. The cost of the trip was $470,000.

In 2023, Schleifer Taylor was the fourth-highest paid hospital executive in Ontario, and the only one outside Toronto pulling in salary and benefits of more than $800,000.

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