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Monday, June 8, 2026 at 8:26 PM

MDH Board - CEO Separation Agreement Under Review

The McDonough District Hospital (MDH) Board of Directors, at a special meeting Thursday evening, voted to allow Board Chair Dan O'Neill to work with the firm, Howard & Howard, to finalize a separation agreement with outgoing CEO Bill Murdock.

At the May 18 Board meeting, members voted to part ways with Murdock in 60 days, and immediately terminated the employment of Chief Nursing Officer Wayne Laramie.

A few days later at a special Administrative Committee meeting, members recommended moving forward with a separation agreement for Murdock; conducting a regional search for the CEO; and forming a seven-person search committee.

The MDH Board of Directors was set to approve each recommendation at its May 28 meeting; however, a vote was not taken on these matters upon returning from the closed session.

At the start of the May 28 meeting, the Board voted to enter into a closed session to discuss the agreement, with Board Member Jere Greuel casting the lone 'no' vote to move into closed session. Following the adjournment of the meeting and closed session, which lasted close to 1.5 hours, O'Neill told The Community News Brief that he will be working with the law firm on the agreement, and that an interim CEO will be voted upon by the Board 'in the near future.'

In addition, after The Community News Brief questioned the Board further following the May 28 meeting regarding the CEO search committee, O’Neill told the CNB that a seven-member search committee was formed, with Board Member JoEllen Pensinger leading the charge. Search committee members include hospital employees Kim Thorman and Dr. Jeff Sparks; Dr. Amy Waschul; MDH Finance Committee Member Todd Lester; MDH Board of Directors Member Seth Minter; and former longtime MDH CEO/ President Steve Hopper. According to Pensinger, the search committee will be meeting soon to begin the process for the regional search for a new leader.

Murdock was named as the permanent CEO in May 2024. He had previously served as the interim CEO/president after the embattled then-CEO Brian Dietz was expelled through a mutual separation agreement, totaling $325,000, in December 2023. Before being named interim CEO in January 2024, Murdock had served as the hospital's Chief Financial Officer since April 2019.

Following the May 21 Administrative Committee Meeting, it was announced that Melissa Onion, BSN, RN, CLC, the director of obstetrics, has been appointed as interim Chief Nursing Officer. The permanent position opening is posted on the hospital's website.

According to Vice President for Business Strategy and Public Relations Patrick Osterman, the Board cannot respond to personnel-related questions surrounding the moves to dismiss Laramie and Murdock.


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