LSHA: Hospital trashed by Authority negligence – no insurance. Board “Mums the Word.” Tries to pay off Meridian not to inspect the Hospital.
November 25, 2025 11:40 am | 12 min read
In June of 2023, there was only minor damage. In Nov.
2025 the damage is unfathomable.
COLUMBIA COUNTY, FL – The Lake Shore Hospital Authority’s Lake Shore Hospital has been trashed by the negligence of Governor DeSantis' hand-picked Board. Today’s hospital replacement value would be about $75M. According to former City Attorney and current LSHA Attorney Todd Kennon, even with an insurance waiver, the Hospital is so dangerous it is unfit for human entry – depending on the person.
Part I
Lake Shore Hospital Authority mismanagement continues: the players, history, and introduction.
Part II
LSHA: The Authority Schemed to keep the Public in the Dark about a Trashed Hospital
Part III
Hurricanes – Negotiations – Access for the Few
Columbia County Observer Banned
Part I
A Complete and Total Mess with Many Players
Lake Shore Hospital Authority Board of Trustees: all trustees have been appointed or re-appointed by Governor DeSantis. It is the Governor’s Board. Additionally, the enabling legislation of the Authority requires: “One member shall be a physician engaged in the practice of medicine at the Lake Shore Hospital.” With the Hospital shut down since October 2020 and in its present condition, a mold-infested La-La Land, that requirement is not met.
Hospital Authority part-time Executive Director Dale Williams, a North Florida legend, and lobbyist for North Florida Professional Services (he says he is not a lobbyist) – he has been on board at the Authority since 2018, when the Hospital was a working hospital, and the Authority had a real client base (over 200), which has dwindled to thirteen. The Authority’s website still has his photo as “coming soon.”
In 2018, now Columbia County County Manager David Kraus said about Dale Williams on his selection as Authority Executive Director, “Dale Williams is one of the smartest people I know."
Authority
Attorney Todd Kennon has been on board since November
2022, two years after the Hospital was vacated. Mr.
Kennon has repeatedly demonstrated a disregard for
Florida Sunshine, and, like his forerunner, Fred
Koberlein, Jr., has many times during public meetings
almost made it impossible for him to be heard – bucking
up against speaking up, disrespecting the public, and
violating the law.
Richard "Dick" Powell, CPA, formerly of Powell & Jones and the Authority’s one-time auditor-accountant-financial advisor (yes, all one person), has been at the Authority since before 2000. When the Observer looked into exactly how far back, by reviewing the Authority minutes, it turned out the Authority had lost its minute book.
Presently, Mr. Powell is the Authority's financial consultant and often shows up when he seems to need pin money. He is also operating under a deficient contract that Authority Attorney Kennon refuses to correct, and Authority Exec. Dir. Williams and the Governor’s Board ignore.
Shands at Lake Shore Hospital
Shands at Lake Shore Hospital belongs to the Lake Shore Hospital Authority (LSHA). It was vacated in October 2020 and received a $7M payment from Community Health Systems (CHS) to walk away from its lease. See: Lake Shore Hospital Authority: Foot Dragging By Governor's Board Costing County Taxpayers $80k Plus a Month.
In February of 2022, Meridian Behavioral Healthcare, under the leadership of CEO Don Savoie, responded to a Request for Proposal (RFP), and after seven months of negotiations, the LSHA and Meridian reached an understanding. See: LSHA: Meridian Behavioral Services On the Docket Tonight. Looking Past the Meridian Glitz & Outsized Salaries, Is It Providing Quality Services & Care?
Meridian CEO Savoie and Meridian's negotiators never got it in writing that the LSHA would maintain the Hospital's condition as it was at the beginning – at the close of negotiations.
In January 2023, Meridian made another proposal to the Authority, see: Meridian & the LSHA: Meridian – Will It Answer Questions & Listen to the Public About Its Planned Renovation of the Vacated Auth Hosp? Meridian came up with three funding proposals, which can be found here on pages 17-20.
Crucial to Meridian in all its proposals was that either Meridian or the Authority would maintain the Hospital "to meet ACHA/DCF licensing standards."
Meridian never had the Authority commit to maintain the hospital in the condition it was when it began negotiating.
With all this going on, Meridian still did not have an agreement that the Authority would maintain the Hospital.
Then, in September 2024, Meridian and the Authority agreed to a deal that Meridian would guarantee a $10M investment in the Hospital, and in return, the Authority would grant Meridian a deed to the Hospital.
A Catastrophic Failure Not Revealed by the Authority
In 2018, while CHS was still operating the Hospital, it became apparent that the roof needed attention. It was failing. Among others, Exec. Dir. Dale Williams and Authority Board member Stephen Douglas met with Gale Inc. and Moses and Associates, Inc., to discuss and review the current leak conditions at the building. "The Authority requested that Gale evaluate the current emergency conditions and develop preliminary temporary repairs to alleviate leaks at critical areas until the full building envelope evaluation and recommendations can be completed. Facility personnel representatives identified critical locations for immediate temporary repairs.” (Gale Associates, Inc., JN: 678105)
In its report, Gale noted that temporary repairs would not solve “all the current water intrusion issues.”
There were also problems with the building envelope detaching from the building.
Some repairs were done, others were not, and it wasn’t mentioned again, other than various invoices being approved during Board meetings.
The Governor’s Board continued to meet, not doing much of anything, and as its client base dwindled down, along with CHS's, whose occupancy rate dwindled to 24 beds, it continued to do nothing: the Authority Board, the Exec. Dir, and the Financial Advisor, at least in public, kept things quiet.
In June of 2023, as negotiations with Meridian dragged on and the Authority Board remained dysfunctional, your reporter decided to visit the vacated Hospital to check its condition.
Admitting in June 2023 – broom clean and ready for
operation. October 2025, Observer banned from Hospital
in Authority coverup with bogus law from Authority
Attorney Todd Kennon. Others had no trouble entering the
Hospital.
Time to Check on the Hospital Condition: Visit
Approved
The Hospital was in broom-clean move in condition
The Hospital had been vacant since October 2020 at a cost of $77,764 per month. For a spreadsheet detailing the carrying costs, see: LSHA: 4 Years, $3 Mil Later, Down to 16 Clients, the Gov’s Illegal Board Is Handing Off the Latest Batch of Prospects to Dale Williams
On June 22, 2023, your reporter, along with Barbara Lemley, conducted a health check of the Hospital. Every room in the Hospital was walked through, and photographs were taken at all levels and of the roof. There were no restrictions. Other than evidence of two small leaks, the Hospital was in broom-clean-move-in condition. The equipment left behind by CHS, which should have been auctioned off after the Authority couldn’t find anyone to take over the operation of the Hospital, remained in the Hospital, depreciating.
By 2024, the Columbia County 5, a.k.a., the County Commission, decided to put a non-binding referendum on the November ballot to abolish the Hospital Authority. See: LSHA: Gov's Board Blows Off County 5 & Discussion of Non-Binding Referendum to Dissolve the Authority 'We don't need to meet with you.'
During that meeting (July 8, 2024), veteran Board member Brandon Beil recommended that the Authority assets be put in a trust for indigent care.” Since his remarks, he has demonstrated that even he doesn’t pay attention to Brandon Beil.
Here Comes Trouble: Hurricane Helene, September 2024
When Hurricane Helene hit Florida in September 2024, Meridian still did not have an agreement that the Authority would maintain the Hospital.
The Observer had heard that the 2024 hurricane season was not kind to the Hospital. There were rumors that part of the roof had separated and other maladies that caused roof leaks. The subject was never broached at any Authority meeting.
Part II
LSHA: The Authority Schemed to keep the Public in the Dark about a Trashed Hospital
What About Property Insurance? Florida is known as the "hurricane capital of the U.S.”
After CHS paid to buy out its lease (2020), the Authority was sitting on $23,469,406 in the bank. By September 2023, it was just under $20M.
With just under $20M in the bank, the Governor's Board and its Exec. Dir. thought property insurance for the Hospital was too expensive.
As mentioned in Part I, the Hospital's replacement value today would be conservatively $70M.
With the Authority negotiating with Meridian for the transfer of the Hospital and Meridian willing to invest $10M (as of 2025), property insurance would protect the taxpayer’s investment and Authority funds and guard against hurricane damage.
Insurance seemed like a good idea; paying for it would not have been a problem for the Authority. According to the FY 2024 audit, during both FY 2023 and FY 2024, the Authority, for those two years respectively, earned $585k and $1.055 million in interest.
However, property insurance was not a good idea for the Authority Exec. Dir. Dale Williams and his Governor-appointed Board.
On September 11, 2023, Authority Exec. Dir. Williams recommended to the Authority Board that it vote to cancel the Hospital's property insurance. As a reason, he said, “The underwriters were not willing to reduce the value of the building.”
Exec. Dir. Williams told the Board, “Clearly, given that is a very substantial building, and as we've not had a history of any property type claims on that building, I really think that's your best option.”
Authority Exec. Dir. Williams and Board member Stephen Douglas knew there were problems with roof leaks and the exterior envelope.
Board member Brandon Beil thought the subject was humorous.
During the meeting, Mr. Williams did not reveal the underwriter’s Hospital valuation. Market research based on a $223,000 premium (the amount of savings for eliminating property insurance) for a Florida hospital reveals a value of $11.5M-$22.3M. (figures by Gemini and Grock)
Both Meridian CEO Don Savoie and Exec. VP/COO Lauren Cohn (now CEO) attended the September 11, 2023, Authority meeting. The last item on the agenda was “Discussion and possible action…Property Coverage.” Before the item was called, they got up and walked out.
The Governor’s Board took Exec. Dir. Williams' advice and canceled the Hospital's property insurance. It is unknown if anyone from Meridian knew the Authority Board had canceled the insurance.
Part III
Hurricanes – Negotiations – Access for the Few
After January 2025, through public records requests and reports, it was clear that folks were inside the Hospital, touring it, and that things were not good.
Photo by LC Code Enforcement. Scott Thomason, the City's
Building Department Director said he had never seen a
roof like that.
Massive hurricane roof damage led to major water leaks and ineffective repairs. Walls crumpled, ceiling tiles fell and/or were removed, air conditioning became inoperative, and there was a black mold infestation in parts of the Hospital.
The Florida summer of 2025 was one of the hottest ever recorded, setting records all over the state. During this time, the air conditioning was not operating (it is unclear whether it was working anywhere in the Hospital). With water leaking down the inside walls and through the ceiling, without air conditioning, the humidity inside the Hospital was through the roof; it was a perfect breeding ground for mold – everywhere.
How badly was the roof leaking? Lake City's chief building official, Scott Thomason, said, “It was leaking like a colander.” (Nov. 2025)
Not once during any public meeting after Hurricane Helene did anyone from the Governor's Board or the Authority Exec. Dir. mention anything about the catastrophic conditions inside the Hospital or the roof leaks.
On June 12, 2025, Meridian’s Board wrote to the Authority, “Based on information recently brought to our attention, we have questions about the current condition of the hospital building and the potential deterioration that may have occurred over the past three years..."
Meridian asked that the Authority perform another inspection.
On July 3, 2025, Authority Exec. Dir. Williams responded, “Meridians' request for a 'new' comprehensive inspection of the Lake Shore Hospital building is problematic... Every month the building costs the Authority $50,000 (average) to maintain minimum standards.”
Mr. Williams did not define what he meant by “minimum standards.” He asked for specific areas of concern.
On July 11, 2025, Meridian's CEO, Lauren Cohn, responded, asking for an inspection based on the following:
“Our view is that these do not appear to be normal 'wear and tear' developments from the passage of time, but are developments that could have been avoided or at least mitigated by routine maintenance and repair over the past three years:
... Major Roof Leaks Across All Four Floors... Mildew and Mold Presence… Leaking Pipes Within Ceilings… Deterioration of Wall and Floors…. Lack of Maintenance on Life Safety Equipment… Air Conditioning Issue on the First Floor…” (emphasis in the original)
On July 16, Exec. Dir. Williams responded, “The Trustees declined (July 14 Bd meeting) to perform a new inspection or to pay for a new inspection.”
On August 7, 2025, with the Authority and Meridian in a stalemate, Exec. Dir. Williams met with CEO Cohn to hash out a solution to the impasse over the building inspection.
On August 20, 2025, Exec. Dir. Williams submitted a memo to the Authority Board detailing the deal. Again, he ignored the Hospital's trashed state.
Authority agrees to pay Meridian $2.5M. Calls it an "incentive", the catch, Meridian gives up the right to inspect the Hospital
Massive damage inside the Hospital covered up by the
Authority Board and Exec. Dir. Here you see a Visine
shoot directing water into a bucket and then being
pumped out. Notice the black mold at the bottom of the
inside of the
wall. This is likely the condition throughout.
The deal was labeled an “Incentive.” It called for the following: LSHA pays Meridian $2.5 million. This figure was explained as an "avoidance" cost so that the Authority would not have to demolish the Hospital. In return, Meridian would agree to eliminate its right to inspect the Hospital and take it "As Is" by October 31.
Nowhere has anyone mentioned that the damage in the Hospital could have been minimized if it had been promptly remediated, or that the Authority, without property insurance on the Hospital, could have had the repairs covered.
September 22, 23, 30: at the LSHA Special Meeting (Sept. 22), the Board acknowledged Meridian's need for a 60-day inspection and a new inspection during that window. September 23, the Authority requested Meridian authorize the new inspection immediately; asks the Meridian Board to approve the conveyance now; agrees to pay half of the new inspection cost with clawback/reimbursement conditions. Finally, on Sept. 30, Meridian’s Board approved the conveyance agreement, subject to inclusion of incentive details.
Via Zoom on October 13, 2025, CEO Cohn announced that Meridian’s Board approved the agreement. Meridian's Board had still not been inside the vacated Hospital to witness the extensive damage, and no mention was made of it.
On October 20, Exec. Dir. Williams updated Senator Bradley and Representative Brannon on the state of the Authority and Meridian negotiations. He did not acknowledge that the inside of the Hospital was trashed. Neither did he invite the delegation to tour the vacated Hospital.
What is the Authority Hiding? Columbia County Observer Banned from the inside of the Hospital – It's too dangerous
On October 22, your reporter requested a visit to the Hospital to photograph its condition. This was not a problem before. Authority Exec. Dir. Williams and Authority Attorney Kennon threw up a roadblock.
First, Exec. Dir. Williams mentioned the necessity of a waiver of insurance. It was provided. Then, Attorney Kennon mentioned a violation of the public records act as an excuse to deny entry. As a hospital is not a document, Mr. Kennon's intent was clear – keep the Observer out of the Hospital.
Mr. Kennon also claimed:
“… given the length of time the hospital building has been vacant, the Authority has concerns related to the interior of the building as it relates to current building codes. These concerns for the safety of third parties cannot be cured by a waiver.”
Mr. Kennon's concerns were curious, as others freely traversed the Hospital, a.k.a., Florida Gateway College President, and other college personnel, as well as Meridian's facility manager and possibly others from Meridian, security, and others. Your reporter was the only person who required an insurance waiver, and on providing it, was denied anyway.
Of
course, Attorney Kennon does not have the power to ban
anyone from the Hospital. Executive Director Williams
can, but he passed the buck. It was not the first time
that those two played their little shell game. Rather
than go to court, the next best thing was to file a
complaint based on Mr. Kennon's remarks that the
Hospital was unsafe.
On October 25, your reporter filed a complaint with Lake City Code Enforcement, outlining Attorney Kennon's claim that the building's interior is unsafe and that allowing entry cannot be cured by an insurance waiver.
On October 27, Code enforcement officer Marshall Sova and the Building Director Scott Thomason inspected the Hospital.
The City report stated they found water damage on the top three floors. It is unclear why the first floor was not mentioned, as large sections of the cafeteria's ceiling tiles have been removed.
The City also found:
“The roof showed significant problems that need to be addressed to prevent further damage showed significant problems that need to be addressed to prevent further intrusion. Florida Building Code does require complete replacement when the repairs exceed 25% in a 12-month period, and the repairs required do surpass that threshold.”
While mold was clearly visible in many photos taken by the City, its report soft-peddled the mold issue. However, a look at the City photos reveals mold in many of them.
Interior photos of water inside the Hospital walls and
mold have been doing damage and left unchecked. All
Board members remained silent during Board meetings, as
well as the Exxecutive Director. Meridian is doing its
own inspection. The Meridian Board has a history of
coverup. (LC Code Enforcement photos)
The inside of the Hospital is a disaster: extensive mold, air conditioning failures, roof damage, water intrusion throughout the building, and makeshift drainage systems in place; security personnel at risk – people working inside the building despite hazardous conditions.
The City closed off two rooms.
Scott Thomason on the hospital roof: "I'll be honest, I've never seen a roof like that –the amount of bubbling or whatever that is coming up from underneath."
Scott Thomason on the roof leaks, "They are not going to get any better."
City Manager Don Rosenthal, "Mold affects long-term health."
As of yesterday morning, City Code Enforcement has not contacted the Hospital Authority. It is coming up with a plan of action.