Post details: Hospital CEOs

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Hospital CEOs

September 19th, 2005

The hospital CEO position is probably one of the toughest positions in healthcare, and maybe anywhere. As passionate as I am about healthcare, I honestly do not aspire to this spot.

A few weeks ago, I highlighted the CEO of Detroit Medical Center, who has aggressively turned his hospital around.

A couple of recent hospital CEO interviews in the press recently. Here's one with Desert Springs Hospital CEO, Sandy Kaufman, who talks about the success of their partnerships and service line expansions.

Here's one with Lawrence Hospital CEO, Edward Dinan, who talks about his faith and his "best practices" in hope.

Last year, ACHE put out a very interesting piece (PDF) on CEO/CNO relationships, based on a survey of 1,000 CEOs and 776 CNOs. Among the findings: CEO/CNO relationships are good and CNOs get a lot less board exposure than CFOs.

Also from ACHE, they have been tracking hospital CEO turnover for almost 15 years - the avg turnover for the last 4 or 5 years: ~15% (1 in 7 or 8 hospitals changes CEOs every year!). New on the ACHE site is CEO turnover by state. The highest: Nevada (33%). The lowest: New Hampshire (3%). Strange that there is such a high variance - if you assume that these rates correlate with financial performance, one would speculate that state policy has a big impact on hospital performance?

And finally, since the Modern Healthcare survey on hospital CEO pay, as expected there has been some of criticism and defense. Some of that fun in Pittsburgh and Georgia (pdf).

Comments:

Comment from: Jack Reichenthal [Visitor] · http://www.hospitalceoforum.org
5 Most Dangerous Trends Facing Local Hospitals

HOUSTON, TX---American Art Resources (AAR) today announced they underwrote a Fortune 500 research report for the Hospital CEO Forum. The report entitled “the 5 Most Dangerous Trends Facing Hospitals” has one of the most innovative solutions to the coming acceleration in America’s growing hospital crisis.

The shocking results from this investigation discovered that Americas hospitals are in trouble.
Experts predict an estimated shortage of 150,000-200,000 beds nationwide by 2012 because of profitability issues. (Source: J.D. Powers, JHACO, Hospital & Health Networks, M.T.I.B)

The 5 Most Dangerous Trends are:

1) Bottom line performance is not improving
Efficiency and cost cutting policies are not working. While hospitals have been going out of business at a rate of one hospital every 8 days for the last 30 years, the bankruptcy trend has started to accelerate in 2005.

2) Cutthroat competition to our medical centers include medical tourism.
Medicare and Medicaid recent reimbursement reductions have made it harder for medical centers to survive. Competition from diagnostic testing facilities, ambulatory surgery centers and specialty hospitals are growing at record rates. India has recently become an early threat with two (2) hospitals that have been approved by the JHACO.

3) Public is losing confidence in our hospitals.
35% of patients indicate a likelihood of not returning to the same hospital. 41% wouldn't recommend a hospital to their family.

4) Staff satisfaction is low
Nursing shortage of more than 1 million nurses as well as significant shortages in pharmacists, lab technicians, and other technical employees are expected by 2010. The hospital working environment is a key contributor to the 20% average burnout and staff turnover.

5) Lawsuits are on the rise
Medical malpractice has grown at an annual rate 30% faster than for all U.S. tort cases. The average malpractice settlement more than tripled from $95,000 in 1986 to $320,000 in 2002.

The Hospital CEO Forum was created to improve on the education model that teaches hospital executives how to survive in a tough economy, improve patient outcomes, mitigate staff stress, reduce medical errors and improve bottom lines.

To be a part of the Hospital CEO Forum please call 800-282-0204 or visit www.hospitalCEOforum.org


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Permalink 03/17/06 @ 11:12
Comment from: Trevor [Visitor]
Hi all! I really like this great site!
Permalink 04/27/06 @ 05:03
Comment from: Kristen [Visitor]
Excellent site. It was pleasant to me.
Permalink 04/27/06 @ 05:07
Comment from: Bob fitzgerald [Visitor]
I'm looking for information on who's the longest running ceo of a hospital??? My dad is the ceo at oakwood hospital in michigan and he's been the ceo for over 30 years. Is that the long or not.
If you can help that would be great.
thanks
Permalink 11/29/06 @ 07:46
Comment from: hospitaltony [Member]
Bob, I don't know of any easy way to look at that - 30 years is a long time!
Permalink 11/29/06 @ 11:24
Comment from: Dr Kritika Rawat [Visitor]
I feel with globalization CEO's Job becomes even more challenging and demanding.
There is a great need for effecient CEO's in India who can work,manage,and function even in a cross cultural environment.
Permalink 03/01/07 @ 05:28
Comment from: Nola [Visitor]
How does one become a hospital ceo? What would you have to study in college?
Permalink 04/17/07 @ 18:42
Comment from: hospitaltony [Member]
Nola, I think you could pretty much study anything in college, but economics, business, finance, or any other major that is both people-oriented and analytical in nature would be good. the key really is what you do after college. I would encourage you to consider an MHA or MBA.
Permalink 04/17/07 @ 21:00
Comment from: Keya [Visitor] · http://AspiringCEOKeya
I am in my 3rd year at Georgia State University. My major is Sociology, and I plan to obtain my Masters in Business Admin. and Public Health. Am I on the right track to becoming a hospital administrator? What advice would you give?
Permalink 06/23/07 @ 13:25
Comment from: Thakur lamsal [Visitor] · http://hmanagerh.ning.com

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Permalink 11/03/07 @ 01:11
Comment from: Cecelia May [Visitor]
Just skimmed site. On service looks like potential for great information. I would like to see stories on how CEOs manage the challenges especially with competitive market, decrease use of acute beds, reductions in insurance reimbursements, lawsuits and government regulations.
Permalink 11/06/07 @ 16:23
Comment from: Antonio [Visitor]
I am looking for a hospital administration internship this summer... anyone know where I should start?
Permalink 12/31/07 @ 23:30
Comment from: Davon Gray [Visitor]
Hello everyone,

My name is Davon Gray and I am one of the assistant coalition coordinators for the John McCain for President campaign. We are asking individuals within the hospital community to join us for a series of conference calls on Senator McCain's healthcare proposals. In addition, we will be asking to hear your opinions and answer questions you may have about his position and the campaign in general.

If you are interested in being on these conference calls, please email me at dgray@mccain08hq.com with your name, phone number and email address. I look forward to hearing from you.

Davon Gray
Permalink 01/10/08 @ 16:55
Comment from: Gene Rozzi [Visitor] · http://www.streamlinesavings.com
Hello all Hospital CEO's and CFO's please visit my website www.streamlinesavings.com and review how we can save money for your institution. There is no cost unless we save money for you. I know how to negotiate lower medical device costs for you and I will train your purchasing department.

If interested call me at 412-335-1126!
Permalink 01/31/08 @ 21:04
Comment from: Bobby J. [Visitor]
Ok everybody now... Let's do the Quorum shuffle! Oh yea, or is it the QHR shuffle? You want real insight to some of the problems we are facing today - let's play follow the leader and check in on how old Quorum is doing these days.

You might remember Quorum Health Resources - yea they manage about 200 hospitals nationwide - they settled that Medicare Cost report fraud case with the feds in the late 90s for approx. $85M. Nope, they never even broke stride and the deals just keep on coming their way.

What is the Quorum shuffle you ask? Oh, that's a sneaky one. Check the latest newspaper accounts of their managed hospitals in Natchez (MS), Lamar (CO), Montrose (CO) and Almagordo (NM).

The bottom line - they go into hospitals and set-up both a management deal AND a variety of kickback deals from "preferred" vendors. They run the hospital into the ground. They fire their own administrator. They hire one of their own traveling interim administrators as the clean-up guy. They hire their own QHR consulting guys to help clean-up. They ask for tax money and blame the government for cutbacks. The community coughs up a ton of tax money. Quourum keeps deal and starts the cycle all over again.

Don't believe me? Just spend 5 minutes and do the research on your own. Oh and by the way - if you work for Quorum and read this - we will see you soon with another update.... until then - keep shuffling!
Permalink 03/23/08 @ 23:59
Comment from: Candace Jackson [Visitor] · http://netincubator.org
Hello everyone please feel free to learn about environmental health at the netincubator.org website.
Permalink 06/04/08 @ 11:45
Comment from: Maria S. [Visitor] · http://visitor
WOW! Quorom sounds just like BRIM management company! They've done the same thing in small communities(20-70,000) all over the U.S. They've received so much money from the tax payers;fired over 150 staff members in one facility alone! They've wasted hundreds of thousands of dollars switching engineering and architecural firms over the course of a hospital renovation that is now into it's 3rd year with little progress, fines, and no end in sight. The interim CEO shuffle is all too familiar. The pick for the CEO position was overridden by a brainwashed board of directors and BRIM.I give you Kevin Hawk. Master of his own special universe and private domain. By the time their work is done in this community, they can certainly afford to retire. RA RA RA!!!! Go BRIM!I forgot to mention that BRIM and the hospital board managed to pick one heck of a guy to be a CEO and role model for a community. Homewrecker X 3!His own, and two other marriages. I give you status quo. Strong work in just 3 short years.
Permalink 06/22/08 @ 16:43

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