Questions surround WellStar dismissals

By Shelia M. Poole and Janel Davis

The Atlanta Journal-Constitution

One of metro Atlanta's biggest health care providers is looking for new leadership following the dismissals of two top executives.

WellStar Health System's board this week fired the Gregory Simone, president and chief executive of the non-profit operator of five north metro hospitals and dozens of other facilities.

Board chairman Randall Bentley, a Marietta attorney, gave no explanation other than to say Simone's termination was a personnel matter. It was announced Thursday and was effective immediately.

His firing follows the Aug. 31 departure of Bonnie Wilson, WellStar’s executive vice president and general counsel. She was told her contract would not be renewed, according to WellStar.

Bentley did not say if the Simone's firing and Wilson's departure were related.

Jim Budzinski, WellStar’s executive vice president and chief financial officer, was appointed acting president and CEO. The board plans a national search for Simone’s replacement, Bentley said.

Simone led the health system since 2007, when he replaced his good friend, Dr.  Robert Lipson, who was killed in a 2006 motorcycle accident.

WellStar and Bentley  said Simone's firing was not related to a six-month Medicare and Medicaid investigation. In August, the hospital system agreed to pay $2.7 million to settle allegations that it improperly billed the state Medicaid system, resulting in

excessive payments from Medicaid.

The hospital system said a flaw in claims processing software caused the problem. "Unfortunately, WellStar did not have adequate systems in place to detect these overpayments," the company said in a statement, adding that the state found no intent to defraud.

WellStar is not only a major health system but a major employer as well, with 11,000-plus  employees, including more than 400 providers in the WellStar Medical Group.

WellStar's five hospitals are in Cobb, Paulding and Douglas counties. The largest is WellStar Kennestone Hospital, which has more than 630 beds. It also has 15 imaging centers, nearly 90  physician locations and a residential care center, WellStar Atherton Place, in Marietta.

Last month, the system unveiled plans to build a  new $139.5 million hospital and medical office building  in Paulding.  The new site will be at U.S. 278 and Bill Carruth Parkway near Hiram. The new project will add up to 500 new jobs.

Other expansion plans include the WellStar Health Park in East Cobb and  the $35 million Kennestone Outpatient Pavilion on the WellStar Kennestone Hospital campus.

The health  system has projected net revenue for fiscal year 2011 of  $1.6 billion.