The Times West Virginian

Local News

September 25, 2013

Second official leaves FGH

Attorney confirms that CFO Dan Honerbrink is no longer with hospital

FAIRMONT — Another high-level administrator is no longer employed with Fairmont General Hospital, the Times West Virginian learned Tuesday.

Dan Honerbrink, the vice president of finance/CFO, is no longer working for the hospital, confirmed attorney Mike Garrison, of Spilman Thomas & Battle, who represents the FGH board of directors.

“I can confirm on behalf of Fairmont General Hospital and the board of directors that Mr. Honerbrink is no longer employed at FGH,” Garrison said Tuesday.

This comes on the heels of the sudden resignation of FGH president and CEO Robert Marquardt Monday at the regular meeting of the hospital’s board of directors. When asked whether Honerbrink’s employment was tied to Marquardt’s resignation, Garrison said he could only confirm that Honerbrink was no longer employed with FGH.

Attempts to reach Marquardt have so far been unsuccessful.

According to his LinkedIn profile, Honerbrink has held the CFO position at FGH since August 2010. Prior to that, his background includes similar positions at Bradford Regional Medical Center in Pennsylvania and Hampton aDel Healthcare Solutions.

The top-level staffing changes also come at a time of major financial restructuring for the hospital. At the beginning of September, FGH filed for Chapter 11 bankruptcy protection. Marquardt said earlier this month that there was hesitancy by the board to make the move, but he said the filing would enable the hospital to reorganize its debts so that it would be stronger financially and more valuable to possible strategic partners.

In a statement released Monday evening, FGH board chairman Mike Martin stressed that the board would be moving forward with the leadership of Peggy Coster as interim president and CEO, and Michael Lane, of Hammond Hanlon Camp LLC, as the hospital’s chief restructuring officer.

“The board would like to thank Mr. Marquardt for his service to the hospital and is excited to continue the important and urgent work of the Chapter 11 restructuring process with Peggy Coster and Mike Lane in positions of leadership,” Martin said. “The board is most interested in playing an active role in this restructuring process and working closely with our advisers to maintain a high-quality acute care hospital here in Marion County.”

Garrison said the plan going forward is for the responsibilities of Honerbrink to be handled by current staff and Lane as the chief restructuring adviser.

Officials said earlier this month that by reorganizing its debts, the hospital will be stronger financially and more valuable to possible strategic partners.

Fairmont General officials announced at the end of 2011 that they would seek a strategic partner to take over the facility, especially in light of the health care changes that will be coming next year with the implementation of the Patient Protection and Affordable Care Act passed by Congress in March 2010 and signed by President Barack Obama.

The hospital hired New York-based Cain Bros., an investment banking firm that specializes in hospital mergers and acquisitions, and in May 2012 entered into a 60-day exclusive negotiation period with West Virginia United Health System, which owns WVU Hospitals in Morgantown and United Hospital Center in Bridgeport. The time lapsed for action on that agreement, and FGH moved forward with considering other options and opportunities.

At the time of the announcement, Garrison said that by reorganizing debts and some long-term contracts, the hospital would be a more attractive partner.

“I’ve spent a lot of time with the board, and the board took a lot of time to really scrutinize its options,” Garrison said. “They all understand very clearly their fiduciary duty, and they made a difficult vote, but they made it because they really want to keep an acute care hospital in Marion County.”

Email Misty Poe at mpoe@timeswv.com or follow her on Twitter @MistyPoeTWV.

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