Tri-City places CEO Anderson on paid leave

The board of directors at Tri-City Medical Center placed its chief executive, Larry Anderson, on paid administrative leave and appointed an interim CEO, a hospital spokesman confirmed Friday.

The 330-bed, public hospital based in Oceanside, Calif., did not indicate the reason for the board's decision. “Larry Anderson has been placed on administrative leave. Current executive vice president and COO Casey Fatch has been named interim CEO,” Tri-City spokesman David Bennett said.

Anderson has been a polarizing figure since being appointed to lead Tri-City in 2009. Shortly after his arrival, the hospital filed a lawsuit against competing health system Scripps Health on the grounds it provided poor patient care and that it diverted patients to its facilities.

A judge dismissed the case last March, which triggered an immediate appeal by Tri-City that is still pending.

“That lawsuit has prevented us from having what I would have hoped during this period of time rich dialogue with the organization about how we could collaborate and work better together at a time of significant health care reform,” Scripps Health CEO Chris Van Gorder said.

Anderson has also been on the receiving end of litigation during his time with Tri-City. He was sued last October by the hospital's former vice president of legal affairs, Steven Daniel Stein, who alleged the CEO was discriminating against employees that took leave from work due to medical conditions.

Anderson is credited with improving the finances of the hospital. Once burdened with excess debt, records show a turnaround began in fiscal year 2011. However, the hospital again posted a loss of $1.4 million for its 2012 budget year, according to records filed with the Internal Revenue Service.

It is not known whether the lawsuit by Stein or the hospital's continued financial challenges were a factor in the board's decision or how long Anderson would remain on leave.

Follow Steven Ross Johnson on Twitter: @MHSjohnson