Board approves $890,813 severance for CEO Webb and forms search committee; payment shifted to Metro judgment fund

The Hospital Authority Board voted to approve a negotiated severance agreement with Dr. Webb and to establish a CEO search committee to begin work promptly.

Wally Dietz, Metro’s law director, told the board he personally negotiated the settlement with Dr. Webb’s attorney and explained why the $890,813.26 figure was reached. Dietz said the amount reflected a principal calculation plus compounded interest at 5% applied to a disputed supplemental retirement benefit claim. He said the negotiation produced concessions of value to Metro, including an immediate exit and a full release by Dr. Webb of claims related to his employment.

Dietz asked the board to approve a minor amendment: that the settlement payment be made from the Metropolitan Department of Finance’s judgment and losses fund rather than directly from Nashville General Hospital funds or a pending supplemental appropriation. He said Dr. Webb’s lawyer had no objection and that the change would not delay payment.

Dietz described the decision as a judgment call weighing the uncertain outcome of litigation, the risk of prolonged disruption if the dispute had been litigated, and the value of an orderly early transition. He told the board that negotiations had resumed in late February and concluded with an agreement in principle early in March; the settlement covered a claim that would have been contentious and likely required litigation to resolve.

Board member Mister Esquivel confirmed the agreement includes a comprehensive release by Dr. Webb preventing him from bringing employment‑related claims against Metro or the hospital authority, but Dietz clarified the release is one‑way: Metro and related entities did not release their own claims and may still pursue appropriate matters arising from Dr. Webb’s employment.

The board moved, seconded and approved the severance agreement, with the oral amendment to the payment source. The board also authorized formation of a CEO search committee and appointed committee members (Mister Esquivel as chair, Doctor Miller, Miss Smith, Doctor Nettles and Doctor Ensenura) to begin meeting the week of April 7 and to recommend a job description, a search firm and whether to appoint an interim CEO.

Ending: The board directed the new search committee to report back in April with recommendations on whether to hire an interim CEO and on a timeline for a national search.