Metro Council approves emergency $10M for Nashville General Hospital while settling with ousted CEO

Two significant decisions regarding Nashville General Hospital have been finalized.

On Tuesday, Nashville’s Metro Council allocated $10 million to help the hospital maintain its current level of operations for the remaining fiscal year amid delayed state dollars and other financial challenges unearthed in an internal audit released in February.

That audit was tied to another item on the council’s agenda — a settlement of nearly $900,000 to former CEO Joseph Webb following his recent resignation.

Webb, who had served as the hospital’s leader for a decade, resigned after the Hospital Authority Board recommended his contract not be renewed.

The council approved the $10 million allocation unanimously. But when it came to the settlement, some councilmembers expressed reticence, blaming him for wrongdoing.

“Metro General Hospital has had a history of mismanagement, and it’s extremely unfortunate because of the people that do depend on that hospital,” Councilmember Courtney Johnston said. “There is just something that goes against my grain to award that kind of money — taxpayer dollars — to someone that has done the things that he has done.”

Others worried about rejecting a settlement against the recommendation of the city’s law department, in fear of being held liable for a much higher amount. In 2024, the body rejected a $105,000 settlement with a former fire captain who had been demoted after making social media posts about Black Lives Matters protesters. This year, a federal jury awarded the captain nearly $2 million in damages. That money will have to come out of the city’s Judgements and Losses Fund.

One councilmember, Kyontzé Toombs, defended Webb’s work.

“In 2017, as we know, former Mayor Megan Berry made an announcement that the hospital would close its inpatient services. There was a community uproar, and Nashville General has never recovered from that. Dr. Webb actually brought some stability to the hospital,” Toombs said. “Under his leadership, the number of insured patients increased at Nashville General, which increased the revenue. So again, let’s not add to the acrimony.”

Nashville General is a safety-net hospital — meaning it treats patients regardless of their ability to pay. That can be an expensive undertaking, and has led the city to scrutinize the hospital’s budget in recent years.

Ultimately, the council approved Webb’s settlement: 34 voted in favor, one voted against and four members abstained.