Upstate Medical president, David Smith, to resign

SYRACUSE — Dr. David R. Smith said he will resign as president of the State University of New York (SUNY) Upstate Medical University, Central New York’s largest employer.

SUNY earlier this week announced it had placed Smith on leave due to “an ongoing review of compensation issues” and “recent health issues.”

Smith on Thursday issued a statement that the SUNY office of communications emailed to CNYBJ.com, and it reads as follows:

“Over the past several weeks, I have been working with the leadership of SUNY as they conduct a review of all sources of my compensation. As I recover from spinal surgery this week, I will continue to cooperate fully and do all that I can to bring the review to a swift conclusion. To avoid further distraction for the University from its important mission, I intend to submit my resignation as president of [Upstate Medical University], so that this great institution can move on to even greater success.”

The Albany Times-Union earlier this week had posted a copy of a Nov. 1 letter SUNY Chancellor Nancy Zimpher wrote to Smith on its website.

In it, the chancellor indicates the review is ongoing, but preliminary information, including statements from Smith, indicate that “at a minimum you authorized and accepted a substantial increase in your compensation in 2012 (continuing into 2013) paid through the Pediatrics Service Group, LLP, without my prior approval.”

Pediatrics Service Group, LLP is part of Upstate Medical University, according to the school’s website.

The letter goes on to say “…and that in 2010 you were actively involved in the establishment of a deferred-compensation plan through MedBest Medical Management, Inc. — an entity affiliated with the Upstate University Health System — that to date totals approximately $349,295.59 for you personally, again without my approval.”

A Tuesday report in the Albany Times-Union says Smith was close to becoming the next president of Penn State University.

The Times-Union reports Isaacson, Miller, the search firm that Penn State is using to find its next president, discovered that Smith was receiving extra compensation from outside companies associated with Upstate Medical University and alerted SUNY.

Besides the announcement placing Dr. Smith on leave, Chancellor Nancy Zimpher also named Dr. Gregory Eastwood officer-in-charge of Upstate Medical University, effective immediately.

Eastwood previously served as president of Upstate Medical University from 1993 to 2006, the school said.

Eastwood is currently a member of the Upstate Medical University faculty, designated as a university professor and teaching in the Center for Bioethics and Humanities, the school said.

Contact Reinhardt at ereinhardt@cnybj.com