Nov 9, 2023 - News

Broadlawns makes $800K settlement after CEO accepts different job

A photo of Anthony Coleman.

Anthony Coleman agreed not to seek employment at Broadlawns Medical Center again in the future after resigning as CEO last week, according to the settlement. Photo: Courtesy of Broadlawns

Anthony Coleman, Broadlawns Medical Center's former CEO, accepted another job before his resignation last week and plans to donate the $800,000 he will be paid in severance benefits to charity, he tells Axios.

Why it matters: Broadlawns is a community "safety net hospital" that is owned by the people of Polk County and levies more than $75 million a year in property taxes.

  • Its budget is more than $200 million, employing more than 1,200 people and providing hundreds of thousands of medical services each year.

Catch up fast: Coleman was hired in late 2021 after previously working as a VP and assistant hospital administrator for the Kaiser Permanente chain in California.

  • His initial contract was good through June 2025, which included an annual base salary of $550,000 with up to $100,000 in yearly bonuses based on performance, Business Record reports.

State of play: Coleman tells Axios he accepted a job in October as CEO of Cedar Hill Regional Medical Center GW Health in Washington, D.C., prior to resigning or being offered a settlement from Broadlawns.

  • Broadlawns' board held a special closed-session meeting Oct. 30 and met again less than 72 hours later when it accepted his resignation.
  • Hospital officials announced the resignation on Nov. 2 via a press release that did not give a reason for his departure.
  • Broadlawns' board was not aware that Coleman had accepted another position at the time the settlement agreement was executed, spokesperson Emily Toribio tells Axios.

By the numbers: Coleman's severance includes a year's pay in addition to a lump-sum of $134,000 as compensation for any bonus he may have earned during his employment.

  • He agreed not to sue the hospital and will be paid $63,000 to cover attorney's fees and release Broadlawns from any claims, according to the settlement document.
  • Another nearly $53,000 is for accrued and unused paid time off.

Of note: Coleman declined a 4.5% raise in March, asking that the nearly $25,000 be used to help increase frontline staff salaries to a more competitive level, Broadlawns' meeting records show.

  • "I was in the Navy for 20 years and the commander always eats last, his troops eat first. So that was kind of my mind frame," Coleman says.

Zoom in: The settlement agreement prohibits Coleman from conveying any information that may denigrate Broadlawns' reputation, which he noted in talking about the settlement, saying the hospital "has some of the finest people that I've had the opportunity to work with."

  • Likewise, Broadlawns' board members and directors are also prohibited from conveying information that would damage Coleman's reputation.
  • Coleman displayed leadership skills and dedication while he was CEO, according to a four-line employment reference that Broadlawns will give on his behalf under the terms of the settlement.

What's next: Broadlawns will launch a national search for Coleman's replacement.

  • Acting chief medical officer Jason Kruse was appointed as the hospital's interim CEO.

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