Hospital CEO fights firing by directors

Franklin Freeland is challenging his Aug. 20 removal as CEO of the Fort Defiance Indian Hospital by the newly privatized hospital's board of directors.

On Wednesday, Freeland, represented by Gallup lawyer David Jordan, filed a complaint with the Office of Navajo Labor Relations against the board for being "wrongfully terminated without just cause" on Aug. 20. He is seeking reinstatement and damages.

The board named Leland Leonard, director of the FDIH '638 Office in Albuquerque, as Freeland's interim replacement.

The change comes just months after ownership of the hospital and a satellite clinic in Sanders, Ariz., was transferred from the Indian Health Service to a private, nonprofit corporation organized under P.L. 93-638, the Indian Self-Determination and Education Act.

Freeland, who was allied with the board in seeking to go private, apparently fell foul of some board members by accommodating requests for information from several chapters in the hospital's service area.

The push for information focused on the board, with some chapter members expressing concern that some board members seem entrenched. The skeptics also doubt that all the current board members are qualified to exercise competent leadership of the massive hospital enterprise, one of the largest health-care institutions on the reservation.

Freeland complied with the chapters' requests for information on such matters as how board members are chosen, how long they serve, and what their duties are.

The current board members are Leland Anthony, Martin Begay, Caleb Roanhorse, Lorraine Nelson, Dr. Raymond Reid, and council delegates Elmer Milford (Fort Defiance), Roy B. Dempsey (Oak Springs/St. Michaels) and Tim Goodluck (Houck/Lupton/Nahata Dziil). One seat on the 10-member board is vacant.

Freeland said Tuesday that the board fired him was because members believe he was trying to remove them through chapter resolutions, and that he allegedly failed to respond to an Aug. 3, 2010, letter from board president Elmer Milford.

"I was really caught off guard," Freeland said. "I guess they were concerned with the fact that I was talking to communities about the board status. But communities were asking about board membership, number, elections, amount paid. My intent was to inform them about what was going on."

He said he responded in writing to Milford's letter.

"I guess he didn't share it with the rest of the board," Freeland said.

After the Navajo Times was directed to several different board members and officials for comment, a board official finally stated Wednesday that it would have no comment.

Freeland's complaint to the ONLR states, "He was terminated for educating the community about the manner of the election of directors" and further that the board members "unlawfully" extended their terms to Dec. 12, 2012. None of the members reported their term extension to the communities they represent, Freeland said in his complaint.

Freeland's job description clearly states that the CEO must work closely with community, he added.

After an Aug. 26 hospital employee meeting, where the board announced that Leonard was the interim CEO, board member Lorraine Nelson told the Navajo Times that Leonard would explain why the board fired Freeland.

But when the Times asked Leonard, he directed the reporter back to the board for comment. Board public information director Michele J. Crank said, "After much discussion the board decided it wanted to go in a different direction."

On Monday, Milford said Leonard would issue a statement.

Crank said, "We would hope that the reason for the CEO to go out and talk to the community would be to provide information about the hospital moving forward in a positive way."

On Wednesday, Crank stated that there would be no statement or interview with the board or with Leonard because of hospital policy regarding personnel matters.

Crank repeatedly said the board's firing of Freeland was "an internal personnel matter" and is confidential. She added that all questions from the Navajo Times must go to her and that the Times should not attempt to talk to hospital staff.

Crank would not respond to a request from the Times for a copy of the hospital policy regarding personnel matters.

Jordan, Freeland's lawyer, said his client is not appealing his termination to the board because "we don't believe they would give us a fair hearing."

He said the reason they believe that is "because this is about the board trying to protect its power base.

"The board is angry at my client because they feel that his educating of the public about the election of board members is jeopardizing their positions," Jordan said. "The fact of the matter is that the board is abusing public trust by staying in (power) too long and avoiding elections. And the public has a right to elect board members."

Freeland is asking Labor Relations to reinstate him with salary retroactive to Aug. 20 and for some punitive damages, including monetary damages from each board member of $300 a month for one year, or $3,600 per board member.

The amount requested equals the stipend that each board member receives for attending meetings, and draws attention to the board's decision to double its meeting stipend, made during an unannounced, out-of-town meeting in May. The board is only required to meet once a month, plus up to four special meetings a year, but has been meeting two to three times a month. Crank said that is because "they've been very busy."

If the board further increases the meeting stipend collected by members, the amount paid to Freeland should rise correspondingly, he requested.

Freeland asked ONLR to direct the hospital board to pay his attorney's fees, that all documents related to his termination be removed from his personnel files, and that he be allowed to reconvene the hospital's executive leadership team upon his reinstatement.