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Roseland Hospital CEO is stepping down from job

Updated: July 6, 2013 6:38AM

The CEO and president of Roseland Community Hospital is stepping down and a source says the state does not owe the hospital $6 million, as the medical facility claimed on Monday.

The hospital and its board could not be reached, but Dian Powell, the head of the hospital, said she “presented a separation agreement” that was accepted by Roseland’s board of directors.

“They’ve asked me to continue to be available until June 21,” said Powell, reached at her home.

Powell said she agreed to leave her position because “it appeared that the state was going to make me the issue around this whole matter. I did not want to become the issue.”

Two sources said that Powell was forced out.

The hospital had said it was in danger of closing because it was $7 million in debt and that $6 million of that was in delayed payments for procedures Roseland had performed on patients. Powell on Tuesday maintained that it was owed $6 million by the state.

The hospital had threatened to stop accepting patients on Wednesday unless the state paid the money the hospital said it was owed.

It was not immediately clear whether the news about Powell meant that Roseland is no longer in danger of closing Wednesday. Powell would say only that the board of directors was working to try to prevent closing.

The Rev. Jesse Jackson had led a group of community leaders requesting that the state provide an infusion of $7 million to keep the hospital running without dramatic cuts to patient care.

But a spokeswoman for Gov. Pat Quinn has said that the hospital had “mismanaged their resources into the situation they are in today” and that the state did not owe it $6 million.

The hospital could not provide a breakdown of the $6 million to the Chicago Sun-Times.

“The State of Illinois remains committed to working with the hospital and helping them identify potential partners and available resources within the law to develop a plan for long-term sustainability,” Quinn’s spokeswoman, Brooke Anderson, said Tuesday. “Those discussions are ongoing. However, the hospital has never provided a plan or any information to move forward.”

A spokesman for Jackson’s Rainbow/PUSH Coalition said Powell’s exit did not change the fact that Roseland does not have the money each month that ity need to stay open long-term.

The hospital has said that Roseland hasn’t been able to generate enough cash flow to pay its expenses because it serves a primarily poor population that often doesn’t have any health coverage, including Medicaid.

Powell was hired as president and CEO of the hospital in December 2011.

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