Williamson County approves $900,000 legal budget for hospital transaction; oversight resolutions fail or are tabled

The Williamson County Board of Commissioners on Jan. 12 approved an amendment to the county attorney budget to pay outside counsel for work related to potential transactions involving Williamson Health, the county-owned hospital system. The resolution (1 26 17) passed 21–3 after more than an hour of presentations and debate.

The commission first discussed the matter after the property committee asked outside counsel Jesse Neal to report on work his firm has done in evaluating the hospital’s potential market process and to describe how the commission could protect community priorities. Neal said his team has engaged with hospital counsel, reviewed criteria used to evaluate potential partners, and is drafting “community covenants” — contract provisions the commission could require of any purchaser related to access to care, charity-care policies, EMS arrangements and other county priorities.

Neal disclosed the firm caps and billing practices to commissioners, saying work is logged in six‑minute increments and that roughly $86,000 has already been billed for work performed in November; the appropriation before the board would create a budget line so the mayor’s office can continue to pay counsel through the fiscal year. Commissioners were told the county intends to seek reimbursement of costs from the hospital or any acquiring party where appropriate.

Several commissioners raised concerns about the hourly rate introduced last fall ($900 per hour) and the overall $900,000 line item. Commissioner Barb Sturgeon said she could not find comparables that justified $900 an hour and wanted more documentation; Commissioner Mary Smith moved an amendment to reduce the appropriation to $100,000 (later discussed at $200,000). Debate focused on two central points: the need for prompt legal and deal-team work to preserve the county’s bargaining position and the public’s right to transparency about how public funds are spent. After discussion the proposed cap was withdrawn; commissioners asked Neal to provide invoices and a narrative of work completed.

Commissioner Morton said the county expects to seek reimbursement from the hospital or a purchaser, and Neal said the firm frequently leverages associates and paralegals to manage cost and would provide time and task detail on request. Commissioner Clifford asked whether the county could terminate the engagement at any time; counsel replied the commission could end the relationship by majority vote.

After debate, the commission voted 21–3 to approve resolution 1 26 17, authorizing the mayor to amend the county attorney budget for payment of counsel in connection with potential Williamson Health transactions. The clerk recorded the vote and the resolution passed.

Two other commission measures on the hospital process produced different results. A separate resolution (1 26 1) seeking to require independent legal counsel under commission control failed 6–18. A second measure (1 26 2) authorizing an RFP to retain an independent consultant to advise the commission was moved, debated and ultimately tabled (16–8) to allow staff and counsel to return with a clearer scope and recommendations on timing and overlap with the hospital’s retained advisers. The commission therefore approved funding for counsel while rejecting or deferring proposals to change the governance or pursue a separate consultant at this time.

The immediate practical effect is that the county now has an appropriated budget line to continue paying outside counsel that has been advising the commission’s property committee, and commissioners asked for monthly invoices and a short narrative of work completed. Neal told commissioners he will supply invoices and a short explanation of staffing and tasks so the board can review fees and work assignments at future meetings.

Next steps: Neal said the property committee will continue to receive updates, and the commission may refine priorities for community covenants at an upcoming property committee meeting. Any formal sale or disposition of county‑owned assets would require further steps by the commission, including any declaration of surplus and final approval of transaction documents.