Hospital board levels more allegations at fired CEO

The Fort Defiance Indian Hospital Board "supplemented" its reasons for its Aug. 20 firing of Chief Executive Officer Franklin Freeland.

Gallup attorney David Jordan, who is representing Freeland, said Wednesday that on Sept. 3 the board supplemented its decision to terminate his client with accusations that Freeland violated hiring policies and misused hospital funds.

According to a copy of the board's Sept. 3 letter to Freeland, which Jordan provided, Freeland allegedly hired "several senior-level employees who did not meet the minimum mandatory requirements.

"Your actions in hiring unqualified individuals expose FDIHB to liability for potential lawsuits ... by qualified candidates for those positions, as well as the risk posed by having unqualified employees performing critical jobs, such as risk management," board President Elmer Milford stated. "As such, your actions constitute serious misconduct."

The individuals that Freeland is alleged to have wrongly hired are administrative assistant Cynthia Yazzie, executive secretary Ophelia Barkley, Chief Operations Officer Lavern Miles, Marketing and Research Director Lance Freeland, and Performance Improvement Director Melinda White.

Milford stated that Yazzie lacked "mandatory experience in risk management," that Barkley, who is Yazzie's sister, "does not possess" a required bachelor's degree, that Miles and White both failed to meet minimum requirements, and that Lance Freeland is "your son, whose hiring you directed to take place regardless of the qualifications of any other candidates."

According to Milford, the alleged misuse of funds occurred between July 22, 2010, and Aug. 11, 2010, and involved hospital credit card cash withdrawals at Dancing Eagle and Sandia casinos by Freeland.

"The account statement also notes a number of 'counter credit transactions,' through which you evidently attempted to replenish the account after improperly using it for personal expenditures," Milford stated.

"Your personal use of FDIHB funds, regardless of what it was used for, constitutes serious misconduct for which immediate termination is warranted," he said.

Milford added that Franklin Freeland had seven days to appeal the allegations in the board's Sept. 3 letter.

Jordan replied that the "supplemental termination notice" was "not a surprise, since the original termination notice was so transparently motivated by politicians trying to protect their seats by abusing the public trust."

Jordan noted that the supplemental allegations were included in Freeland's amended complaint against the board to the Office of Navajo Labor Relations.

He also emphasized that the hiring and promoting of all hospital staff, especially Yazzie, Barkley, Miles, White and Lance Freeland, were discussed with hospital attorney Steve Boos and REDW, a human resources company.

Jordan said that interim CEO Leland Leonard, who was promoted to chief of planning and logistics during the hospital's recent transition from IHS to a nonprofit corporation, "had minimum qualifications."

"(Leonard's) brother on the board, Leland Anthony, participated in the discussion and voted on actions of Dr. Leonard," Jordan stated. "Clearly, there is a conflict of interest. For the record, Leland Anthony, brother to Dr. Leonard, did not excuse himself from voting for his brother (as interim hospital CEO)."

Jordan added that Barkley was removed as executive secretary and replaced with Terrilyn Largo-LaMotte, who is a "blood relative to Caleb Roanhorse, secretary of the (FDIH) board."

He emphasized that Roanhorse, as board secretary, works closely with executive secretary on board minutes, stipends and travel.

He said the board's allegations of misuse of hospital funds involved Freeland's use of an account that is funded with proceeds from a soda machine located on the hospital's northeast entrance.

Freeland used the account for travel expenses and reimbursed 100 percent of the money, he said.

Jordan stated that Yazzie, who holds a bachelor's degree in criminal justice, gained risk management experience when she worked for an attorney's office in Gallup.

He said Barkley has high public relations skills, exemplary computer skills, basic bookkeeping, and possesses English grammar knowledge.

"She is an honest person with high ethics," Jordan said. "She would question board members about their travel or plans to attend board meetings. This upset at least one board member, who owes $1,600 to the Indian Health Service (Board)."

Miles was the hospital's finance manager for a number of years and served as director of the Nahata Dziil Health Clinic before becoming chief of operations and was an active member of the hospital's Executive Leadership Group, he said.

"Dr. Freeland played no role in his (son's) hiring," Jordan stated. "Because of the obvious conflict of interest, this hire was handled by Leland Leonard."

The board named Leonard as the interim CEO on Aug. 20.

Jordan stated that another candidate was selected for the marketing position but that candidate did not accept the offer.

He said Lance Freeland has a bachelor's degree in psychology with a minor in chemistry and previously had worked at the University of New Mexico, where he oversaw a wellness program at Tóhajiilee, N.M.

White has a bachelor's degree in nursing and worked as a nurse at Sage Memorial Hospital and performance improvement coordinator, Jordan said. She earned a master's degree in hospital administration, he also said.

FDIHB spokesperson Michelle Crank said Wednesday that the board would have no comment about Freeland because his termination is a personnel matter.

She said Leonard told the hospital staff that he and Anthony are clan brothers, and that Roanhorse and Largo-LaMotte are related by clan, not blood.