Becker's Spine Review

48 HEALTHCARE NEWS New York Hospital reportedly pays CEO $660K to 'disappear' By Alyssa Rege T he former CEO of Syracuse, N.Y.-based SUNY Upstate Medical University reportedly entered into an agree- ment with the hospital to resign and continue earning his chief executive $660,500 annual salary for one year, according to syracuse.com. According to the confidential agreement, obtained by syracuse. com, former hospital CEO John McCabe, MD, agreed to serve as a consultant for the hospital under the title "senior assistant to the president." In the role, Dr. McCabe was required to provide "a broad range of administrative services to the SUNY Upstate president as assigned from time to time," and was required to stay off campus apart from the institution's library, according to the report. "It was SUNY's idea there would be an agreement and there would be terms that would have [Dr. McCabe] resigning from the insti- tution," one of Dr. McCabe's attorneys told syracuse.com. Dr. McCabe's role as a consultant with SUNY ended March 14, the report states. During an interview with syracuse.com, Dr. Mc- Cabe reportedly refused to discuss the terms of the deal, citing the agreement's proviso he remain silent about the contract. He told the publication he had wanted to step down as CEO of the hospital in late 2016 and return to teaching medical school. He said he decided to resign aer Danielle Laraque-Arena, MD, took over as president of the institution in 2016 so she could create her own management team, the report states. "ere was never a time anyone asked me to step down," Dr. Mc- Cabe said. "It was clear to me [Dr. Laraque-Arena] wanted to, and it would be helpful for her, to have a team in place that was of her own choosing to allow her to be successful." Dr. McCabe sent his resignation letter to Dr. Laraque-Arena in November 2016. However, aer acknowledging his resignation, "all communication with the president shut down," he said, add- ing he was instead referred to a SUNY lawyer. He signed a nondis- closure agreement in December 2016. Dr. McCabe told the publication he interpreted his first phone conversation with SUNY lawyers as an indication administrators wanted him "to disappear." In a statement to syracuse.com, SUNY Upstate Medical Univer- sity said Dr. McCabe played a valuable role during the leadership transition. "As senior assistant to the president, Dr. McCabe provided ser- vices to assist with this transition. e terms of the agreement with Dr. McCabe are standard provisions under the law," the state- ment said. n Physicians: Is CHS 'a slow- motion train wreck?' By Ayla Ellison I t has been abour one year since Franklin, Tenn.-based Community Health Systems rejected a group of physicians' takeover bid for Lutheran Health Network in Fort Wayne, Ind. At that time, physicians said LHN was in dire need of upgrades to improve quality of care and patient experience. Those upgrades are still needed, a group of physician advocates wrote in a recent op-ed in The Journal Gazette. CHS became one of the largest for-profit hospital opera- tors in the U.S. by acquiring smaller community hospitals. However, in an effort to improve its financial picture and pay down its debt, CHS has sold several hospitals in recent years and has deals in the works to divest additional facilities. The hospital sales have helped CHS lighten its debt load, but it is not clear whether the divestitures will generate enough funds to adequately reduce the company's total debt, wrote William Cast, MD; Matthew Sprunger, MD; and J. Philip Tyndall, MD. "And so, is Community in recovery mode or is this a slow-motion train wreck? It is hard to tell," wrote the phy- sicians. "Debt costs can limit hiring, and it is ultimately the ability to replace retiring nurses and physicians; the abili- ty over time to train teams to practice safe processes; and the ability to provide all of the new equipment people require that underpin quality." The physicians noted there have been improvements at LHN in the last year, including some equipment up- grades. However, they said more investments in infra- structure and people are needed. "Our scorecard reads that matters are not better and trending lower," wrote the physicians. CHS intends to invest a total of $500 million in LHN, includ- ing a possible new medical campus to replace St. Joseph Hospital in Fort Wayne. However, the physicians claim that isn't enough. In an op-ed published last August, the phy- sicians said CHS would need to invest nearly $800 million "to correct its missteps and return LHN to form." n "Our scorecard reads that matters are not better and trending lower." - CHS physicians TO REGISTER: CALL 800 417 2035 • FAX 866 678 5755 • REGISTRATION@BECKERSHEALTHCARE.COM OR VISIT www.beckersasc.com/TBD

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