Wrongful dismissal lawsuits at LHSC a glimpse into hospital administrators' salaries

Two former employees with the London Health Sciences Centre (LHSC) who were let go during recent rounds of layoffs have filed wrongful dismissal suits against the Ontario hospital, claiming damages totalling in the hundreds of thousands each.

Corporate hospital administration executive Brad Campbell was hired in 2022 after working for the hospital as a consultant. He was part of the first round of layoffs around Aug. 7, when provincially appointed supervisor David Musyj began reigning in a $150-million projected budget deficit.

Campbell, who is a Toronto resident, according to court documents, filed a lawsuit in London last week seeking damages for wrongful dismissal.

He claims he's owed $1.2 million for loss of salary for the 2½ years he had left in his contract. He alleges his contract stipulates he can not be terminated without advance notice of termination, or pay in lieu. 

Campbell is also seeking $282,250 for lost bonuses, more than $35,000 for lost car allowances and approximately $22,000 for no longer having health-care spending and professional development allowances. 

The merits of the case have not been tested in court and LHSC has not yet filed a statement of defence.

The hospital is undergoing major changes as it grapples with cost overruns. The board of directors has resigned and the province appointed Musyj, the longtime CEO of Windsor Regional Hospital, as supervisor to help with management and administration concerns.

Resignation of 2 more executives

In just a few weeks, Musyj had eliminated more than 59 positions and reassigned 71 others from the Victoria, University and Children's hospital sites. He said it has resulted in a total of $14 million in savings. 

On Friday, two additional employees resigned, including Nash Syed, vice-president of Children's Hospital and Women's Services who will depart in January. He was hired at the same time as Campbell after they worked together as president and vice-president for consulting firm Corpus Sanchez.

Dr. Alex Barron, chair of the medical advisory committee, is also stepping away immediately, Musyj wrote to LHSC staff on Friday. 

"I extend my gratitude to both Nash and Alex for their significant contributions to LHSC and wish them all the best in their future endeavours," Musyj said in a statement on Tuesday.

A different lawsuit

Several days before Campbell filed his lawsuit, an employee who had been at the hospital for 21 years, working her way up from a patient registration clerk to an administrator, also filed paperwork at the London courthouse.

According to Crystal Curry, she was wrongfully dismissed on Sept. 3. She claims the hospital did not give just cause for letting her go, and though it did offer her a confidential severance package, she did not agree to it. 

Curry is seeking approximately $285,000 in damages, calculated to include her base pay of $142,600, plus additional compensation for the time it will take to settle the disagreement, court documents show. She also claims she's owed an undetermined amount for her loss of benefits, including dental, health and life insurance. 

Curry's claim also includes $50,000 that the hospital planned to give her to complete her undergraduate university degree. She did not have one, but it's now a prerequisite for a person in her position. She had signed a contract in March with the hospital to begin a program starting next year. 

This claim has also not been proven in court and LHSC has not yet submitted a statement of defence.