Issue link: https://beckershealthcare.uberflip.com/i/1491222
15 CEO / STRATEGY Hospital CEO exits climb in what may be bellwether for C-suites By Molly Gamble T he number of CEO changes at hospitals and health systems climbed 300 percent in November aer a slowdown the month prior, according to a Dec. 14 Challenger, Gray & Christmas report. In November, hospitals saw 12 CEO exits compared to three in October. e dozen most recently recorded exits mark a 33 percent increase from the nine recorded in November 2021. Across all industries, CEO exits surged in November aer what the executive coaching firm calls "a summer lull." e number of CEO changes rose 34 percent from 71 in October to 95 in November. e latest month also saw an uptick in retirements — 37 CEOs retired, the most since January 2020. e upturn of CEO movement in November may be a sign of more CEO changes to come. "We may begin to see large numbers of CEO changes as we enter 2023 amid an economic downturn," said Andrew Challenger, senior vice president of Challenger, Gray & Christmas. "Companies are shoring up succession plans to enter the storm." In an Oct. 18 report from Kaufman Hall based on response from 86 health system leaders, 46 percent said labor costs are the largest opportunity for cost reduction — up significantly from the 17 percent of leaders who said the same last year. Job cuts at hospitals may seem counterintuitive given the nation's widely known shortages of healthcare workers. But as hospitals weather one of their most financially difficult years, some are reducing administrative staff, not filling vacant jobs or shrinking their executive teams to curb costs. n Ascension Saint Thomas promotes strategy chief to CEO By Molly Gamble N ashville, Tenn.-based Ascension Saint Thomas has named Fahad Tahir president and CEO of the 12-hospital system, effective immediately. Mr. Tahir most recently served as the system's chief strategy officer and, before that, president and CEO of Ascension Saint Thomas Hospital Midtown and West campuses, which have more than 1,000 beds combined. Mr. Tahir will replace Tim Adams as president and CEO of Ascension Saint Thomas. After five years of leading the system, Mr. Adams is taking up the role of regional operating officer and senior vice president of Ascension, where he will oversee ministries in Alabama, Florida and Gulf Coast, Indiana, Kansas, Maryland, New York, Oklahoma, Tennessee, Texas, and Washington, D.C. Mr. Tahir's connection to Ascension dates back to 2003, when he held various roles in practice management with Ascension Columbia St. Mary's Milwaukee. He joined the Saint Thomas system in 2014 as CEO of its medical group, climbing the ranks to become CEO of Saint Thomas Hospital in 2018 and system chief strategy officer in 2020. Mr. Tahir has earned numerous accolades as a young and emerging leader in healthcare. He earned his bachelor's degree from University of Wisconsin-Milwaukee and master's degrees from Johns Hopkins Bloomberg School of Public Health and Loyola University Chicago Quinlan School of Business. n Jefferson Health reorganizing, executive job cuts coming By Laura Dyrda P hiladelphia-based Jefferson Health plans to go from five divisions to three in an effort to flatten management and become more efficient, The Philadelphia Inquirer reported Jan. 12. Under the new plan, Jefferson will group its wholly owned hospitals into the northern region, led by Brian Sweeney, BSN, RN, who currently oversees the system's New Jersey hospitals; central region, led by current president and COO of Einstein Medical Center Dixie James; and east region, which Mr. Sweeney will lead on an interim basis. The regional presidents will report to Jefferson Health COO. The reorganization will result in job cuts, primarily among executives, according to the report. Richard Webster, president of Thomas Jefferson University Hospital in Center City and Magee Rehabilitation Hospital in Philadelphia, and Alison Ferren, president and COO of Abington (Pa.) Health, are among the executives exiting the system. Joseph Cacchione, MD, who took the helm as CEO of Thomas Jefferson University and Jefferson Health in September, told The Inquirer that many of the system's hospitals compete with each other under the current structure, and he hopes the reorganization will help bring clinical programs together. "This adjustment in our organizational structure is in the best interest of Jefferson's ability to fulfill our mission of improving lives. It ultimately contributes to true clinical integration as 'One Jefferson' and enables Jefferson Health to better streamline processes and optimize our health system," said Dr. Cacchione. n