Becker's Hospital Review

67 67 CEO / STRATEGY Ascension fires 75% of DC-based Providence Health System's board By Alyssa Rege N ine of Washington, D.C.-based Providence Health System's 12 board members were abruptly fired Aug. 30, according to emails obtained by the Washington City Paper. e move represents the latest occurrence in a monthslong ordeal in- volving Providence and its parent company, St. Louis-based Ascension. On July 25, Ascension announced its intention to end acute care ser- vices at Providence by the end of 2018. Instead, the system will focus on providing services such as care coordination, telehealth, primary and urgent care, and community-based behavioral healthcare. However, a former Providence board member told the Washington City Paper Ascension initially introduced the idea of ending acute care at Providence in a July 23 board meeting, allegedly waiting until aer the regular meeting ended and aer several board members had le the meeting. e source told the publication the board adopted the resolution be- cause they believed that though acute care services would end, the institution itself would survive. However, the source said board mem- bers soon realized the move was allegedly part of Ascension's overall plan to eventually close Providence. Providence's board of directors sent a letter to Ascension President and CEO Anthony Tersigni and Patricia Maryland, executive vice presi- dent of Ascension and president and CEO of Ascension Healthcare, Aug. 1. e letter, obtained by the Washington City Paper, claimed Providence's board of directors was "never involved in the final deci- sion to close [Providence's] acute care services and [the] Pope Francis Emergency Care Center." "e board was informed of the closure … less than 30 hours before Ascension's public announcement. Prior to this, the board was not consulted regarding the decision itself, the alternatives that had been considered, if any, or the timing and execution of the final decision. … Equally as clear is the perception of the board that its lack of inclusion in the final decision-making process appeared deliberate, disingenu- ous and in bad faith by Ascension leadership, resulting in the board's perception that their opinion was of no consequence or value," the letter read. During two special meetings in early August, the board introduced and passed a resolution rescinding its July approval of Ascension's plans for Providence. e Washington City Paper reported Providence's board of directors received an email Aug. 30, notifying them that all but three of its members were fired. "Because we understand the difficulty and pressures a local board fac- es when a decision is made to close a community hospital, Ascension Healthcare has made the decision to downsize and reconfigure the current Providence Hospital Board of Directors. is is consistent with our practices in other markets where we have made the decision to exit acute care. Accordingly, effective as of Aug. 30, 2018, Ascension Healthcare has removed the current Providence Hospital Board mem- bers," the email, obtained by the publication, stated. An Ascension spokesperson confirmed to Becker's Hospital Review Sept. 4 that Providence's board of directors "[had] been reconfigured." "Providence Health System has been transforming to better align the services it provides with the evolving needs of the District of Colum- bia. With a focus on the future, the current board of directors has been reconfigured so that a new board of directors can advance Prov- idence's transformation in the community. "e new board will help guide this transformation under the same three core principles that has served as a foundation throughout this process: commitment to the mission, that Providence is not leaving the District, and that Providence will be transitioning to best serve the needs of the community. "Providence will have an ongoing presence in the District of Colum- bia. e new board will focus its oversight on the collaborative work underway to create a model that will keep health at the center, re- move obstacles and barriers to a healthy life for all, and better meet the needs of a changing and growing community." n Optum co-creator named COO of Amazon, Berkshire, JPMorgan venture By Morgan Haefner T he healthcare venture launched by Amazon, Berk- shire Hathaway and JPMorgan Chase picked a for- mer Comcast and Optum executive to be its COO. The venture, led by CEO Atul Gawande, MD, selected Jack Stoddard to fill the COO position beginning Sept. 4, sources familiar with the matter told CNBC. Mr. Stod- dard most recently served as Comcast's general manag- er for digital health. Mr. Stoddard was part of the executive team that creat- ed Optum, now a subsidiary of UnitedHealth Group. Mr. Stoddard was also a co-founder of health benefit solu- tion Accolade. Accolade is a Comcast Ventures-backed startup. On June 20, Amazon, JPMorgan and Berkshire Hatha- way selected Dr. Gawande, a surgeon at Boston-based Brigham and Women's Hospital and contributor to The New Yorker, to lead their healthcare company. Warren Buffett, chairman and CEO of Berkshire Hathaway, told Bloomberg Television Aug. 30 that Dr. Gawande will be hiring a small team for the venture. n

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