Council approves $10 million for Nashville General and settles former CEO claim for $890,813

The Metropolitan Council voted to appropriate up to $10 million to the Nashville General Hospital authority and approved a settlement of $890,813.26 for a retirement/compensation claim by former hospital CEO Dr. Webb.

Councilmember Porterfield, sponsor of both measures, said the $10 million is intended to help the hospital operate through the current fiscal year and to cover funding gaps created by delayed state disbursements. The settlement resolves a claim that a hospital authority board vote in 2020 provided retroactive deferred-retirement compensation to Dr. Webb; Metro’s legal team advised that refusing the settlement could expose the city to greater liability.

The settlement and appropriation drew sharply divided public comment and council debate. Several public speakers questioned the judgment of paying a large lump sum to a former CEO amid ongoing concerns about hospital conditions and oversight. Simone Boyd, who said family members had received care at Nashville General, urged the council to defer the settlement vote and “visit the hospital” before approving a payout. Steve Ryder, a member of the public, described the idea of retroactive compensation as akin to backdating and said it set a bad precedent.

Metro Legal Director Wally Dietz told the council that board minutes and supporting documentation reflected a board vote in 2020 to grant the retirement benefit, and that the city faces a contested claim that likely would be litigated if the council declined settlement. Dietz said the calculation in the settlement used a conservative 5% lost-earnings rate; he noted that other investments over that period produced higher returns, meaning the estimate was intentionally cautious.

Supporters of the settlement argued that approving the amount and the appropriation would end the dispute, secure a release of other potential claims against Metro, and allow Nashville General to move forward with leadership and operational planning. Councilmember Toombs described the need to “turn the page” to address the hospital’s future; Councilmember Parker said he would support resolving the legal exposure so the council and administration could focus on the hospital’s long-term plan.

Opponents said the pension/retirement award and the size of the settlement are politically and morally difficult given the hospital’s problems described in recent audits and public testimony. Councilmember Johnston said she could not in good conscience support awarding the amount to someone who presided over the problems flagged by auditors and reporters.

Votes: The appropriation resolution (RS2025-1109) passed (voice vote with 1 recorded abstention). The settlement resolution (RS2025-1110) passed on a recorded vote: 34 in favor, 1 against, 4 abstentions.

The council’s votes settle the current claim and provide short-term operating funds; council members and administration staff said they expect further work on governance, oversight and the hospital’s long-term financing in coming months.

What happened next: Both measures are effective immediately. The appropriation will be drawn from Metro’s available accounts as described by the budget office; the settlement will be paid from the Judgment and Losses Fund as noted in the settlement resolution.