MORGANTOWN — The former president and CEO of a D.C.-area hospice and its north-central West Virginia affiliate — who resigned last year amid accusations of bullying employees and lavishly spending company money — has been rehired by the local hospice.
Arthurdale-based Hospice Care Corp., doing business as WV Caring, rehired Malene Davis in March as chief visionary officer and founding president.
Her new salary of $150,000 is down substantially from her 2017 pay of $869,251 but comparatively high for WV Caring. In 2015, Medical Director Samuel Roberts made $155,298. Ron Hicks served as executive director and made $114,807 in 2016. Former secretary Sonia Bailey-Gibson took over as executive director and made $41,605.
In an email exchange, WV Caring said, “We are thrilled to have Malene Davis back with us full-time in support of our vital mission ‘to simply improve care.’”
Board chair Kim Larew wrote in the email exchange: “WV Caring is a faith-based organization providing terminally ill patients with peace of mind and quality of life as they reach the end of their time spent on this earth. The founder of this organization, Malene Davis, has been an instrumental hospice influence for close to 40 years, dedicating her life to the cause.
“Ms. Davis is a respected leader in the community and highly regarded by her co-workers. Never really removed from hospice work, Ms. Davis has taken on numerous volunteer positions in the area since moving from D.C. Her expertise and experience in business and nursing adds great value to our entire organization.”
Before returning in an official capacity, Davis supported WV Caring for several months as an unpaid volunteer, Larew said.
Davis stepped down in July 2018 as CEO of Capital Caring, based in Falls Church, Va., and WV Caring. Her resignation occurred just days before publication of a series of stories in The Dominion Post that resulted from a months-long investigation of allegations regarding her conduct at the companies.
Her resignation also followed the completion of an investigation launched by the Capital Caring board and conducted by the international law firm McGuireWoods, which was based on a dossier provided to the board by people closely associated with the company. Those same people also spoke to The Dominion Post.
The witnesses alleged that Davis engaged in “luxurious and wasteful spending” of company money — about 90 percent of company money is taxpayer funds via Medicare and Medicaid — and operated the company in an atmosphere of bullying and intimidation.
They alleged that the CEO’s small leadership team, including a contracted consultant who also parted ways with the company at that time, also benefited from the wasteful spending and willfully permitted the “hostile work environment.”
Board chair and interim CEO Tom Koutsoumpas told employees in July: “As many of you know, the Capital Caring Board of Trustees recently authorized a comprehensive operational review of the organization, conducted by an outside organization. The Capital Caring Board has a fiduciary responsibility to initiate tighter controls, operational improvements and enhanced oversight moving forward. As interim CEO, my immediate focus will be to work with you, our patients, their families, and our donors in addition to our Board members to ensure we plot a path forward of transparency, trust and compassion.”
Approached for comment on Davis’ rehiring at WV Caring, Koutsoumpas replied in an email: “As you know, we have absolutely no affiliation or interaction whatsoever with West Virginia Caring and therefore have no comment.”
Larew commented on those 2018 stories recently:
“We are familiar with the allegations made in the press against Ms. Davis. Following independent reviews by both counsel and auditors, those claims were unsubstantiated. We feel comfortable to have her back and know that we will benefit from her knowledge and skills. In fact, we already have. The Board of Directors are very pleased with her return and truly value her whole-hearted dedication to hospice service.”
Following the publication of the 2018 stories, The Dominion Post received more phone calls and letters from people wishing to affirm the allegations outlined and to discuss allegations of nepotism and self-enrichment. One person called to voice support for Davis.
WV Caring recently claimed that “Last summer, Ms. Davis was not afforded the opportunity to address a number of unsubstantiated claims made against her. She would appreciate the opportunity to address any claims made against her now.”
The Dominion Post pointed out that in 2018, written questions for Davis were sent to the D.C.-based public relations firm hired to handle the newspaper’s queries. Davis never answered those questions. She only supplied a statement through her attorney.
For this story, Davis again declined multiple invitations to be interviewed.
WV Caring is a private nonprofit that serves 12 West Virginia counties, including Monongalia and Marion. WV Caring and Capital Caring had a joint operating agreement that ran from 2016 until its end in July 2018.
As with the previous stories, people with ties to the company agreed to talk on the promise of anonymity, claiming they feared retaliation. All allegations mentioned here are based on documentation or statements by three or more witnesses.
Alleged self-enrichment
Sources expressed concern that Davis and her husband, Bob Davis, appear to benefit via rent collections and construction and maintenance payments.
The Davises own the former fire hall in Reedsville that now serves as WV Caring’s thrift store, Encore Resale Shop. Proceeds go to assist those who can’t afford to pay for care.
WV Caring operates a second thrift shop in Bellview, Marion County. In 2017, total thrift shop revenue was $165,378.
WV Caring spokeswoman Cindy Woodyard said the company pays the Davises $800 per month — $9,600 per year — to use the building. It uses the main floor of the building for thrift store operations. The lower floor is not part of the lease but is used for storage of tools and equipment at no charge.
“We believe that the rent is below and within market rates for the community,” Woodyard said. “Ms. Davis has been a tremendous supporter of West Virginia Caring, both monetarily and otherwise.”
According to Preston County records, the Davises bought the building in 1994 for $55,000. The 2018 tax bill for land and building was $1,208.32.
Larew added, “The Davises have been extremely generous personally, having donated back to the organization far more than the money this modest rental rate provides.”
Sources said WV Caring employed Bob Davis as a contractor for many years.
A July 2002 article in a Preston County weekly newspaper reported that Bob Davis led most of the renovation work to convert the former Arthurdale Inn into the Hospice Care headquarters.
The Dominion Post asked WV Caring about this practice and to supply his total pay per year back to 2002.
Included in the questions was an allegation by sources that work on the Davises’ home in Arlington, Va., was bundled with contract work for either Capital Caring or WV Caring.
Larew did not answer the questions about Bob Davis’ compensation or about using company funds to pay for renovations to the Arlington home.
She wrote: “It is not a good use of resources, which are better spent on caring for patients than trying to locate information over this span, especially accounting for the change in organizational structure and entities involved during this period. Suffice it to say that all contract work provided by or through Mr. Bob Davis was the result of a structured procurement process, with board approval, to assure the work was being done at the lowest, reasonable price.”
Alleged nepotism
Allegations of nepotism trace back more than a decade.
Davis’ sister, Malisa Smith, a former elementary school art teacher, is WV Caring’s vice president of community relations after restructuring undertaken upon Davis’ re-hiring. Her previous title was vice president of operations. Several witnesses said Smith collected Hospice Care pay while she was still teaching and collecting a taxpayer salary.
Steve Smith, Davis’ brother, is vice president of human resources. His prior title was vice president of organizational performance.
Sources say he began his work for Hospice Care as a courier before being promoted over another applicant with human resources training. The bypassed applicant subsequently resigned.
Sources also testified to employment of two other family members.
Jared McCrobie, former husband of Malisa Smith, once oversaw the thrift stores. Debbie Smith, a sister-in-law, paid Hospice Care bills.
Sources allege management did not enforce company timesheet policies with Davis’ relatives in the same way as other employees.
“It truly is an atmosphere where a certain family runs it, and they make it clear it’s their business,” a source said. “You either learn to look the other way or whatever. … The whole family-involved business component of it was really troubling.”
Amid a series of negative employee reviews on the jobsite Glassdoor, a former nurse posted last August: “If you are going to employee your whole family they should know how to do their job and be held accountable.”
Other allegations
Witnesses separate their admiration for the organization’s role from their allegations about Davis.
“I loved the mission,” said one.
“They do a lot of good things for a lot of people that need it,” said another. “The employees’ hearts are in right place.”
A third source said: “The people at the ground level that provide the services there, they really are caring people. They have big hearts. They put a lot of time, effort and energy into it. They really do go beyond what they’re supposed to do to help. It’s a very serious mission.”
But witnesses repeated allegations of Davis’ abusive behavior at Capital Caring and WV Caring.
“I still drank the Kool Aid,” said one. “I wanted to believe this was for the good of the mission. … Why did I put up with it? … Everything’s a crooked picture frame. Luckily I survived. I lived under a cloud as an abused person. You felt like you did something to bring it on. … I limped away.”
Referring to the 2018 reports, the person said, “You have given me something I could not give myself.”
Witnesses said the same prohibition against talking to board members without permission formerly in place at Capital Caring also existed at WV Caring. It was even in the handbook.
Davis also discouraged employees from talking to each other during breaks, particularly about pay rates, sources said. “She just had to be in everything and kept very tight control. … She made people fearful they wouldn’t have a job.”
“It was not a healthy place to work,” said another source. “They didn’t trust their staff, which made it very hard to work for them. No matter what you did for them, no matter how good of a job you did, they never trusted you.”
When Davis came to an office, managers made sure staffers limited their interaction.
“If they knew that she was coming, you were to make yourself scarce,” a source said. “You weren’t to go talk to her.”
Financial update
The Dominion Post reported last July that Davis’ 2016 total compensation was $547,508, which included $371,164 base salary and $128,809 in bonus and incentive compensation, according to the nonprofit company’s 2016 IRS 990 tax form — the most recent available at the time.
Both companies’ 990 forms for 2017 are now available. That year, overseeing both entities, Davis made $869,251, including $451,615 base salary and $372,352 bonus and incentive.
Davis left Hospice Care for Capital Caring in 2006. Capital Caring had been operating in the red, but under her leadership, the company made a quick turnaround. In 2016, Capital Caring took in $92.3 million and ended $1.1 million in the black.
In 2017, the company saw increased revenues, $96.4 million, but also saw increased expenses, including employee compensation, and ended $2.5 million in the red.
From 2006-13, Davis collected dual payroll from Hospice Care Corp. and Capital Caring. (Hospice Care changed its doing-business name to WV Caring on Jan. 1, 2017.) The Hospice Care 990 forms state she was paid for her accessibility as a consultant. From 2014 on, all her compensation came from Capital Caring.
Her Hospice Care income peaked in her last full year there, 2005, at $180,308. It then steadily declined: $152,276 salary plus $14,153 in benefits in 2006; a total $134,376 in 2007; $120,200 in 2009; $73,097 in 2010; $69,231 in 2013. Her current pay is based on her 2006 pay, WV Caring said it its email.
Her Hospice Care titles changed several times during those years: Executive director through 2009; founding president from 2009 through 2015; president and CEO in 2016 and 2017.
Hospice Care’s financial fortunes turned south shortly after Davis left. It peaked in 2007, taking in $18.9 million and spending $16.3 million, for a net profit of nearly $2.7 million.
Net revenue plunged to $109,523 in 2008, beginning a series of steady losses. From 2009 through 2016, Hospice Care saw only two years in the black: 2010 and 2012.
In 2017, WV Caring experienced $1.3 million loss.
Hospice Care saw a total loss of $6.1 million from 2009 through 2017.
Hospice Care also shed employees during that span, from 274 in 2008 to 148 in 2017.
One supporter
Following the previous stories, one person phoned to voice support for Davis: Perry Fine. Fine served as a Capital Caring consult with the title strategic advisor up until Davis separated from Capital Caring. As previously reported, he was often Davis’ traveling companion on trips paid for with Capital Caring funds.
He is the namesake of the Perry G. Fine, MD, Endowed Fund in Pain and Palliative Medicine at the WVU School of Medicine. Davis was instrumental in creating the Perry G. Fine M.D. Pain Lecture Series at WVU; the 10th annual lecture was in October 2017. WVU said it has since suspended the lecture series.
WVU said the Fine endowment fund was established by a gift from the Fine family in 2012 to benefit the schools of nursing and medicine and dedicated to education on pain and palliative care. The funds are on hold until further notice.
Fine is named as a defendant in 148 opioid-related lawsuits filed in the U.S. District Court for the Northern District of Ohio.
He’s not a primary figure in those cases, but is named as one of several “key opinion leaders”: Physicians allegedly supported by opioid manufacturers, individually and through medical-association front groups, to promote the products and minimize concerns of their addictive qualities.
Regarding those allegations, Fine maintains his innocence. He’s been practicing medicine for 40 years, he said during the phone interview, and has always been an advocate for patients and pain control. He was never involved in sales, marketing or distribution, but “got stuck in the crosshairs.”
He defended his friend Davis at length, and justified the expenses detailed in the previous reports.
It was Fine who in 2014 related Davis’ order to upgrade her flight to a California retreat to business/first class; that round trip ticket cost the company $1,168.19.
And it was Fine who arranged for a private dinner for Davis, himself and two others that cost $1,260.
Those expenses were never any secret, he said. There was full transparency on expensing.
Hospice Care was little known before Davis put it on the map, Fine said, creating a model of care and one of the most successful programs in the nation. “There are a vast number of people grateful for her vision.”
Hospice use in the D.C. area before Davis’ arrival was lowest in the country, at only 2 percent, he said. When she left, it was 40 percent.
She’s “kind, open, humble, generous, charitable, a mission-focused person,” Fine said. “She just leads the pack. She lives that mission 24-7, 365.”
Regarding her alleged abuse, Fine said that’s a misread of her character. “She really did expect people to do their jobs. She took human enterprise very seriously.”
When Davis left Capital Caring last July, Koutsoumpas said, “Capital Caring and its Chief Executive Officer and President Malene Davis have decided to amicably go our separate ways.”
Fine didn’t characterize it that way. “Malene got hosed,” he said.
Fine alleges that the investigation and subsequent parting was an “opportunistic takeover,” and a means to “leverage her out of the organization.”
WV Caring said it has no plans to engage Fine’s services again.
WV Caring statement
We conclude by quoting WV Caring’s point of view at length.
Although the two organizations are now separate, the local board said the hospice will continue doing business as WV Caring — a name it took on when the companies joined. They officially separated Dec. 31.
“WV Caring has reorganized as an independent non-profit organization and is better poised and more focused to care for those living with advanced illness and offering hope to families who look for help for their loved ones. Our mission is to invest in the community through caring for people on hospice at home, nursing homes, inpatient units, independent and assisted living communities, wherever they call home.”
Asked about their plans, the board said, “West Virginia ranks 42nd in hospice utilization in the country, which means many individuals die without receiving the benefits and care of hospice. This fact makes our goals clear: develop the first hospice center in Morgantown; achieve 100 percent hospice nurse certification; be a resource and solution to the health issues in WV; focus on and educate WV consumers about the end-of-life care options that are available to them with no out-of-pocket expenses.”
WV Caring stated it is “very happy to welcome Malene Davis home” and supported her record of financial performance.
“She was the organization’s first employee and founding president and has been a pioneer in the hospice and palliative care industry for close to four decades. In her role as chief visionary officer & founding president, she continues her work in West Virginia to focus on strategic relationships with large healthcare systems to keep WV Caring at the forefront of the changing healthcare landscape.
“WV Caring has been fortunate that she has been by our side over the years; especially as navigating healthcare has become increasingly more complicated with less reimbursement and tightened regulations. Her vision building WV Caring to 12 counties made it a powerhouse in the state.”
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DBeard@DominionPost.com
