In surprise moves, Board of Regents President John Forsyth and La Porte City Regent David Neil submitted separate letters of resignation to Gov. Tom Vilsack late last week.

During an emergency board meeting Dec. 29, the regents voted 5-2 to give the University of Iowa authority in deciding whether to give notice of termination of the U of I Hospitals and Clinics’s contract with Wellmark Inc.

Neil, former member of the Wellmark Board of Directors, said he resigned because the decision was made “in the dark of the night.”

“I think that’s wrong, and I think we should have done studies and had more discussion,” he said.

“You are affecting people’s lives.”

Neil said he strongly opposes the board’s move to transfer its responsibility, as it bypasses board approval and gives the university sweeping authority.

In order to ensure proper governance, he said the regents need to supervise contracts such as Wellmark’s.

The debate over Wellmark’s contract also prompted Forsyth’s resignation because of conflicts of interest and job restrictions. Forsyth sent his letter to Vilsack on Thursday.

Before becoming president in May 2004, Forsyth, chairman and chief executive officer of Wellmark, reviewed potential conflicts of interest with Attorney General Tom Miller, who, at the time, confirmed Forsyth could serve as board president.

To avoid any further conflicts of interest, Forsyth took further precautions, delegating responsibility for Wellmark’s relations with the regents and regent institutions to David Southwell, Wellmark group vice president and financial officer and treasurer, according to his resignation letter.

In November, after learning the likelihood of contract termination between U of I Hospitals and Wellmark, Forsyth wrote a letter to Miller outlining potential conflicts of interest. The attorney general reaffirmed his opinion that there was no conflict of interest; however, he also added new restrictions.

Because of the restrictions, Forsyth said Miller narrowed the scope of his responsibility as a regent, jeopardizing his ability to fulfill his role as president.

“Were I to do as the attorney general requires, I would not be fully discharging my oversight and advocacy responsibilities as a regent to you and to the people of Iowa,” he wrote in his letter.

Both resigning members had issues with the vote during the Dec. 29 meeting.

Forsyth abstained from voting and requested the Iowa Attorney General Office oversee the meeting. Neil resigned from the Wellmark Board of Directors before the meeting and cast no vote at the meeting.

After receiving authority, U of I officials gave a notice of termination to Wellmark less than 24 hours after the emergency meeting.

Iowa has contracted with Wellmark for about 50 years and paid the university $200 million a year on behalf of U of I customers. If the contract is not renewed, it will not expire until Dec. 31. Iowa officials said notice of termination was given because they want fair compensation for the medical care the hospitals provide.

“We have some differences of opinion on what [is an] appropriate compensation of services,” said U of I Director of University Relations Steve Parrott. “We have a year to straighten everything out, and we’re confident we’ll reach a mutually beneficial contract.”

Although Neil stresses his displeasure in giving contract approval to the university, fellow Regent Amir Arbisser said the resolution was necessary.

Wellmark officials contend they provide adequate reimbursement and affordable rates.

Arbisser said he and other regents worked behind the scenes to figure out ways to avoid the board vote.

The only option was to let the contract lapse and renegotiate a new one, he said.