Affiliation plan moves ahead; New River CEO receives evaluation

Directors with St. Cloud-based CentraCare Health Systems voted last Thursday to move ahead affiliation plans with New River Medical Center.
Jeanine Nistler, CentraCare’s director of communications, confirmed CentraCare’s three governing boards had approved the affiliation partnership plan that was passed 6-1 by New River Medical Center’s Board of Directors on Nov. 26.
Documentation regarding the overall affiliation process and partnership will be drafted and signed and a due diligence process is about to begin. The two health care systems may discuss an interim management agreement as affiliation moves ahead.
“I know their boards did approve moving forward,” added Joni Pawelk, New River Medical Center’s director of marketing.
Pawelk also confirmed New River Medical Center’s Board of Directors’ executive committee met at 7:30 a.m. Wednesday (Dec. 5) to discuss an employee evaluation of CEO Marshall Smith. There will likely be a vote to close the review to the public since the meeting involves an employee evaluation. The results will be forwarded to the full board for public presentation Dec. 13, in accordance with Minnesota Open Meeting Law. “This is his annual evaluation,” Pawelk said. “The executive committee consists of Ervin Danielowski, Linda Doerr, Bob Dawson and Brian Doyle. The full board’s four officers currently serve on the committee, she said.
The Open Meeting Law states a hospital board may close a meeting to evaluate performance of an individual who is subject to its authority. The board has to identify the individual being evaluated prior to closing a meeting. Then at its next open meeting, the hospital board must summarize its evaluation conclusions.
Smith’s last employee evaluation was conducted on Dec. 27, 2011, Pawelk said. His current annual salary is $260,000. The date of his last salary increase was July 5, 2010. The annual amount of that increase was $20,000, Pawelk said. Smith’s total compensation package for calendar year 2011 was $341,290.