Father Smith (board member who chaired the physicians relations committee) requested that Brad and the president of the medical staff work together in locating the areas of greatest concern with regard to sup- ply shortages. Father Smith asked that this information be available at the next board meeting. May 2013-Brad speaks with the Corporate CEO Brad called the corporate office to discuss the ongoing seriousness of the supply issues. The purchase, storage, and distribution of supplies had been centralized in a corporate location off site. At the same time, Accounts Payable was also centralized and was accused of paying vendors on the basis of who screamed the loudest rather than on patient need. June 2013-Administrator and Medical Staff President Joint Memo to the Board "We sincerely believe that as a result of the supply shortages, the negative impact on morale of patients and employees during the past 5 years is substantial. The serious nature of these concerns is noted in the follow- ing paragraphs." Major Vendors requiring ad- vance payment 2010 8 2011 3 2012 29 2013 50 The system CEO was distressed that Brad had provided this infor- mation to the board, complaining to him, "You're out to get me." Brad responded, I am complying with the board's request, and it's in the board minutes. Besides, I gave you an ad- vance copy of the memorandum." Discussion 1. Discuss the ethical issues that this case raises. 2. Are there any circumstances in which CEOs should attempt to keep information from their boards? 3. Brad is in a multihospital sys- tem making major profits but cannot control the flow of funds out of the community hospital. The governing body is aware of the serious nature of the supply crisis. What should the board do? 4. If you were Brad or on the board, what action would you take? 7 hrs 53 mins left in book 48%