Philanthropic foundation reeling after president's resignation

A philanthropic organization that generated more than $1 million for Memorial Health System last year is suffering financial fallout after its popular president was forced to resign.

Patricia Peterson was recently asked by Memorial Health System Chief Executive Officer Dr. Larry McEvoy to step down, foundation board members said Monday. She was hired as Memorial Health System Foundation's president and CEO in 2005 and is credited with revamping the organization and leading it to new heights in fundraising.

One foundation board member, Betsy Carroll, resigned over the ordeal and added that her family is withdrawing $100,000 in contributions.

A longtime donor, Richard Fesler, who said his foundation has given about $200,000 to Memorial during the past several years, is walking away.

"I am offended, therefore I will not support the institution any longer," he said. "I'm done. There are other organizations I can support."

Reasons for Peterson's departure are unclear. She remains an active employee on Memorial's rolls, said hospital spokesman Chris Valentine, who declined further comment. Peterson was reached at home Monday but also declined to comment.

Foundation board members confirmed her resignation, though, and Carroll said Memorial's records likely reflect ongoing severance discussions.

The foundation's board was called to a special meeting a few weeks ago for what Carroll said was reported as a "roundtable discussion." Once there, they learned of McEvoy's intentions to let Peterson go, she said. He cited "inappropriate behavior," she said. Her own take: "I think it was a personality conflict."

People said Monday that Peterson was the best of three directors they've worked with throughout the years, and they agreed the charity will lose money because of the move.

Peterson is a registered nurse and an attorney who was previously the hospital's in-house legal counsel before taking charge of the foundation.

Foundation board President Dr. David Greenberg praised Peterson on Monday and said he was disappointed, but he added that the board stands behind McEvoy's decision and will do its best to move on.

"It's not going to be easy," he said. "I think the foundation is going to kind of take a hit for a while."

How big of a hit is yet to be determined. Board member Mary Ellen McNally said Peterson was well connected in the community and had a knack for raising money: "Pat was an excellent fundraiser, and it's going to be pretty tough to fill her shoes."

Carroll suspects as much as $400,000 in immediate donations could be lost, based on conversations she's had with upset donors and board members.

That doesn't account for the know-how and expertise Peterson possessed. A recent silent auction brought $118,000, Carroll said.

"It will take five years to rebuild that foundation," she said.

Paulette Greenberg, a longtime volunteer and the wife of David Greenberg, said, "I think we're going to suffer."

She said Peterson took the foundation in "a whole new direction."

"I can't say enough positive things about what she has done for the foundation and the community."

The foundation formed in 2001 on a mayoral recommendation, with a mission to help fund programs, equipment and other needs for the city-owned hospital system.

Recent donations have included equipment for Memorial Hospital's Children's Neonatal Intensive Care Nursery and a playground.

David Greenberg said the foundation raised more than a $1 million for Memorial last year.

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DETAILS

Patricia Peterson is a registered nurse and an attorney who was previously the hospital's in-house legal counsel before taking charge of the foundation.