Home Business The former CEO of NCHC stepped down due to a student loan...

The former CEO of NCHC stepped down due to a student loan bailout program and also received $ 25,000 in a resignation agreement.



WAUSAU, Wisconsin (WSAW) – Former North Central Health Care CEO Michael Loy stepped down after being accused of creating a student loan repayment program without proper authorization.

A third-party review of over 9,600 emails has shown that neither the NCHC Board, NCHC Executive Committee, nor the Retention District Administration Committee have authorized the creation of the Retention Policy.

A 45-page document titled “Preliminary Evidence and Conclusions on North Central Health Care Employee Benefit Policy,” published to NewsChannel 7 via a request for public records, states that Loy has approved loans totaling $ 185,598.44 for four employees. In addition, Loy received a $ 60,000 loan and a $ 500 monthly vehicle stipend that was not included in his employment contract.

On the last page of the document was Loy’s statement. It reads in part:

“Regarding the use of employee benefits other than my own, I believe that (1) I had historical case-law to provide these benefits, starting with several doctors who are currently excluded from this report, and (2) I had the right to grant these benefits to executives other than me, as directed by the NCHC Executive Committee in October 2018.

Finally, I will never understand why the NCHC Board did not respond to the letter I sent last December to the Chairman of the Board asking to voluntarily pay the employee retention, or why I have continued to receive the car scholarship ever since. The fact that I could not unilaterally cancel these benefits only reinforces the fact that I could not exercise them for myself in the first place. As a result, both of these benefits were returned. “

During the investigation, it was stated that in October 2017, former NCHC chairman of the board of directors Jeff Zrini sent Loy an email stating that the salary proposal of the NCHC board of directors was in line with RCA’s guidelines. The salary offer was 8% more than Loy’s current salary at the time, which had not been adjusted for almost 2 years.

Zrini’s email said, “We believe it is important that we keep Michael’s services on the balance sheet of these five[1]a one-year contract with Three County and therefore added a retention element to the proposal that would forgive his student debt through his executive MBA program. We would include this in his employment contract, which would also include a $ 300 monthly car allowance for travel through Three County’s service area. ”

During the investigation, Loy said he was told that if the elements of the loan and scholarship remained in his draft employment contract, he would not get the job. On November 2, 2017, Loy sent an email to the NCSSP and RCAC Board of Directors. In part, it read:

“Therefore, I respectfully request the Chairman of the NCCSP Board, in his authority, to negotiate the employment agreement with me, to exclude the student loan exemption from my employment contract, along with any other considerations and restrictions related thereto. I believe that this will soften the essence and essence of the problem, and perhaps we can move on. “

An e-mail correspondence began between Zrini and Loy.Zrini replied to Loew as follows: “Once we go through the appointment process, do I have some flexibility to do things behind the scenes? I believe that this was indeed instigated by one person, one of our directors. “

On May 27, Loy was sent on paid administrative leave. His resignation took effect on 1 July. The 12-page resignation agreement states that he was paid a lump sum payment of $ 25,000. He may never again take a position on the NCH.

Loy was named CEO of NCHC in October 2017 after serving as interim CEO. He has been with the NCHC since June 2014. Prior to his appointment in April 2017, all RCA committee members and NCHC executive committee members praised Michael Loy’s work as interim CEO. All indicated that Michael met and exceeded all expectations in terms of performance, according to the fact-finding investigation.

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