UPDATE: St. Joe’s CEO embroiled in controversy over Dominican vacation has $1M termination clause
The local hospital CEO who vacationed in the Caribbean over the holidays has a golden parachute worth more than $1 million in his contract with St. Joseph's Health System.
The board of directors is meeting Thursday to decide what to do about the mounting calls for action after Dr. Tom Stewart and his family spent the holidays at their private home in the Dominican Republic and returned Tuesday. During the pandemic, the federal and provincial governments have advised against non-essential travel to stop the spread of COVID-19.
We understand that we are facing a very serious issue and, as a board, must take the necessary time to deliberate and listen to our staff and community," St. Joseph's Health System said in a statement attributed to board chair Sister Anne Anderson. Please know, that at all times, we remain committed to St. Joseph's Health System's legacy of compassionate care for those we are privileged to serve."
It's unclear whether Stewart would get the compensation if he resigns or if the board terminates his leadership. The contract dated Aug. 1, 2018 entitles him to 24 months pay if the hospital terminates the agreement without cause.
Stewart took home the third highest public-sector salary in Hamilton in 2019 at $629,715, including taxable benefits.
His contract sets out an annual salary of $552,500 and a performance based adjustment of $97,500.
The contract also provides continuation of certain employment-related benefits for a set time such as the Healthcare of Ontario Pension Plan, the supplemental executive retirement plan, dental, group life insurance and extended health benefits.
The golden parachute isn't paid if the contract is terminated for cause which includes breach of the provisions of the agreement; gross neglect of duty; disregard or disobedience of any reasonable resolution of the board; any wilful act of dishonesty or wilful neglect in performance of duties or conviction of an indictable criminal offence.
St. Joseph's Health System has said Stewart was on approved vacation from Dec. 18 to Jan. 5 and during that time, he travelled to the Dominican Republic. It has not answered questions on whether the board knew Stewart would be travelling internationally.
We recognize and value the efforts of all our staff who have been working tirelessly and with great dedication," said the statement attributed to senior vice-president Brian Guest. We encourage and support our staff taking vacation time while following public health advice.".
It's also not clear who would pay the compensation. Stewart is president and CEO of St. Joseph's Health System which includes St. Joseph's Healthcare, Niagara Health, St. Mary's General Hospital in Kitchener, St. Joseph's Health Centre in Guelph, St. Joseph's Lifecare Centre in Brantford, St. Joseph's Villa in Dundas, St. Joseph's Home Care and an international outreach program.
Under the same contract and salary, he is also CEO of St. Joseph's Healthcare Hamilton and was CEO of Niagara Health until Wednesday.
Niagara Health announced just after 9 p.m. Wednesday that its board had decided to immediately end its six-year agreement to purchase CEO services from St. Joseph's Health System. It's unclear what the financial ramifications of this are for either of the health systems.
The board of directors named its current president Lynn Guerriero interim CEO of Niagara Health, which consists of six sites.
Our staff and physicians have earned the deepest respect of our community for their hard work and dedication during the pandemic," Niagara Health said in a statement. The Niagara Health Board of Directors are very proud of their extraordinary efforts."
Other parts of the contractual agreement with St. Joseph's Health System such as joint programs and services remain in place.
The Board of Directors of Niagara Health have decided to end the purchase of CEO services within the agreement effective immediately," says the statement. The Board of Directors of Niagara Health would like to thank Dr. Tom Stewart for his valuable service to our system and the people of Niagara."
The Niagara Health decision prompted Thursday's board meeting which is also in response to a number of issues related to the international travel" of Stewart. St. Joseph's Health System has not said when the in camera meeting that is not open to the public will take place
St. Joseph's Healthcare Hamilton has remained silent about Stewart's trip. It is not clear if its board has discussed the trip or met.
Instead, the statement was released by the overarching St. Joseph's Health System which said Stewart is now self-isolating at home for two weeks.
Neither St. Joseph's Healthcare nor Health System have said if any other leaders travelled internationally during the pandemic.
Hamilton Health Sciences and Mohawk College have both said none of their leaders left the country over the holidays, while Burlington's Joseph Brant Hospital and McMaster University say its senior leadership hasn't travelled internationally during the entire pandemic.
I regret this non-essential travel and I'm sorry," Stewart said in the same statement. I recognize everyone should be avoiding non-essential travel now, including me."
He went on to say, As a health system leader, my actions in no way reflect the tireless dedication and commitment of the staff at St. Joseph's Health System, who continue to live the legacy of our organization every day."
Stewart's trip has already prompted his resignation from a number of boards that provide COVID-19 advice to the province, including the Health Co-ordination Table, the Ontario COVID-19 Science Advisory Table and the Long-Term Care Incident Management System Table.
Calls have mounted for St. Joseph's board to take action from the Ontario Public Service Employees Union (OPSEU), the Registered Nurses' Association of Ontario and NDP leader and Hamilton Centre MPP Andrea Horwath.
Premier Doug Ford said it's up to the health system's board - not the provincial government - to determine what to do about the trip. Although he noted MPP Rod Phillips resigned as finance minister Dec. 31 after returning from a two-week Caribbean trip to St. Barts.
They're going to have to make a tough decision," Ford said Wednesday. I made the tough decision with my finance minister."
The Canadian Union of Public Employees (CUPE) alleges St. Joseph's Healthcare fired a registered practical nurse in November for flying to the United States to visit her parents.
St. Joseph's Healthcare said it can't comment on specific matters related to an employee.
The Hospital has the right to deny leave due to operational needs, our commitment to patient care and ensuring we have appropriate staffing levels," St. Joseph's Healthcare said in a statement. We review any employee requests thoroughly and attempt to support our employees in approving leave. If leave can not be approved, any absence is considered unauthorized."
A growing list of Canadian politicians have come under fire for international vacations, including Conservative MP for Flamborough-Glanbrook David Sweet, who travelled to the United States and has since resigned from his role as ethics committee chair while announcing he will not seek re-election.
Stewart's trip also came as COVID cases are on a steep rise in Ontario including Hamilton. The surge is pushing health systems to the limit and resulting in large and deadly hospital and seniors' home outbreaks.
It's not the first time Stewart's leadership has been questioned. He resigned as Mount Sinai's top doctor in 2013 amid a scandal regarding third-party contracts involving hundreds of thousands of dollars of public money with the Ornge air ambulance service.
Joanna Frketich is a Hamilton-based reporter covering health for The Spectator. Reach her via email: jfrketich@thespec.com