Nashville General Hospital CEO Resigns Amid Audit Findings of Fraud and Policy Violations

Nashville General Hospital's CEO, Joseph Webb, has announced his resignation following a scathing report from the city's Metro Office of Internal Audit. The investigation, prompted by credible sources, uncovered substantial evidence of fraud, wasteful spending, and policy violations at the executive level.

Audit Findings and Financial Irregularities

The audit report, released hours before a scheduled board vote on Webb's contract renewal, detailed several alarming discoveries:

• Approximately $4.6 million in hospital contracts were never presented to the board for approval.
• Webb allegedly intervened to add or backdate signatures on contracts requested through public records requests.
• A doctor was found practicing at two hospital clinics without a contract and at no charge.
• Over $230,000 in overpayments were made to the hospital's valet services contractor.

These findings come amid ongoing financial struggles and previous audits criticizing the hospital's financial oversight. The 150-bed safety-net hospital, owned by the city of Nashville, has been under scrutiny for its use of tens of millions in city subsidies.

Webb's Tenure and Resignation

Joseph Webb, who has led Nashville General Hospital since 2015, was the institution's longest-serving CEO. His current contract, signed in 2022, was set to expire, with his annual compensation package approaching $1 million.

Despite a recent favorable performance review giving Webb a 4/5 score, a committee recommended against renewing his contract. Webb's resignation, effective March 14, 2025, preempted the scheduled board vote on his contract renewal.

In a statement, Webb expressed gratitude for his decade of service, thanking his leadership team, staff, and various stakeholders for their support. The hospital's board has not yet appointed an interim CEO and plans to discuss the matter in upcoming meetings.

Hospital Achievements and Future Challenges

During Webb's tenure, Nashville General Hospital launched several community healthcare initiatives, including a "Food Pharmacy" addressing food insecurity and a "No-Wait Emergency Department." The hospital also recently received an "A" quality rating from the Leapfrog Group.

However, the audit findings and Webb's resignation come at a critical time for the hospital. Nashville General faces ongoing financial challenges and a strained relationship with Meharry Medical College, following the expiration of a physician services agreement in 2023.

As the hospital's board begins the search for new leadership, they will need to address the governance and financial oversight issues highlighted in the audit report while maintaining the hospital's critical role in providing healthcare services to Nashville's community.