Decorahnews.com exclusive: Winneshiek Medical Center and Mayo argued over money that the hospital said Mayo owed to the hospital

The Winneshiek Medical Center Board of Trustees has signed two contracts with Mayo Health Systems that cover the terms of Mayo's involvement with the hospital.  The Physician Services Agreement covers the payments Winneshiek Medical Center makes to Mayo for services provided by Mayo doctors.  The Management Services Agreement covers the payments Winneshiek Medical Center makes to Mayo for the salaries of the hospital's top four administrators, who are employees of Mayo Health Systems.

On Thursday evening the hospital board will meet in closed session for what the meeting notice says is "Strategic Planning."  Decorahnews.com has learned that the purpose of the meeting will be to discuss ten-year renewals of the two contracts with Mayo.

The proposal to renew the two contracts is being discussed even though decorahnews.com has learned the hospital board and Mayo Health Systems were locked into a dispute last summer over the payments the hospital makes to Mayo.

An audit done by one of the top 25 accounting firms in the country—Eide Bailley—discovered that Winneshiek Medical Center had overpaid Mayo Health Systems in 2009 to the tune of $412,000.  The results from the Dubuque office's audit were presented to Mayo Health Systems officials.

Sources tell decorahnews.com that the initial response from Mayo Health Systems was that it did not think it owed the hospital the $412,000.  Sources also tell decorahnews.com that the Winneshiek Medical Center Board of Trustees discussed the matter in closed session—and several board members were willing to write off the $412,000 amount.

Decorahnews.com has learned that the biggest opponent of writing off the amount was not a Board of Trustees member, but the longtime attorney for the hospital—Doug Gross.  Gross was hired by the hospital in the late 1980s after graduating summa cum laude from Iowa Wesleyan in 1977 and from Drake University Law School with honors in 1985.  Gross also ran for Iowa Governor in 2002.

Sources tell decorahnews.com that Gross strongly urged the board to continue pressing Mayo Health Systems for the money.  As a result, the WMC Board of Trustees accepted a $206,000 settlement offer from Mayo Health Systems at a board meeting August 3rd, following a closed door session to discuss the offer.

It was a bittersweet victory for Gross, decorahnews.com has learned.  Sources tell decorahnews.com that Mayo Health Systems officials were upset with Gross.  At the same meeting the Winneshiek Medical Center Board of Trustees voted to accept the $206,000 settlement from Mayo Health Systems, the board also voted to terminate the hospital's contract for legal services from Brown Winick Law Firm—the firm Gross works for.