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State: Hospital directors waited too long to do something about CEO's relationship with employee

The state Attorney General's office says the $50,000 fine levied by Beth Israel Deaconess Medical Center's board of directors against CEO Paul Levy was punishment enough. But the AG's office, which found no abuse of hospital funds, also criticized the directors for not putting a stop to the relationship earlier, even though some board members might have known about it as early as 2003:

Had (Levy) been called on his failure to act, or had his failure to act been reported to the entire Board, this acknowledged 'lapse of judgment' might never have occurred. For senior managers who reported to Levy, demanding a response was likely difficult. For Board members, it was their job.

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Comments

JEEZ! That's stronger language than she used against City Hall's email deleter!

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Nor is it really the AGs position to tell him who he can have a relationship with or to suggest the hospital should have told him to end the relationship. They can say end it or resign but I think the real issue is how he exercised his authority and judgment as CEO, and how he abused it by hiring her and then exercising bad judgment and creating a workplace problem by having her report directly to him, instead of someone else.

Even after the board found out, they could have determined if she was a keeper rather than dead weight and just have her report to someone else other than her CEO boyfriend.

Whether Levy was still bumping uglies with her really isn't their business, although it would be a public relations nightmare for the hospital and Levy's wife and kids if it came out on the front page of the Herald. ... hmmm What would the headline read?

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The legal problem was not the sexual relationship, but the lover's professional position and who she reported to at the hospital.

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resigned over this?

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I thought one board member resigned because of a conflict of interest. Was the CEO of a firm that the hospital was entering into business with.

There were two?

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My understanding is that he's a good guy. Looks like he's getting screwed.

I really hope they back off and make it up to him, because this is sending a disturbing message about loose-canon Boston/MA craziness to business leaders.

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...should get away with any craziness they want, legal or otherwise!

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