Becker's Hospital Review

20 CEO / STRATEGY Virtua similarly tracks lives served year over year and whether new patients stay. Key indicators include retention across the continuum, access to services, measurable gains in clinical outcomes and patient experience and sustained or improved margins. For Essentia Health, Dr. Herman said the focus is reducing the cost per episode of care — and avoiding unnecessary care altogether. "A lot of it will be knowing them better and getting them the care they need before they need that care, so we can avoid that clinic visit, that ED visit or that hospitalization." n When a C-suite leader exits: 4 CEOs on what to do first By Kristin Kuchno Two in 3 healthcare executives are considering leaving their organizations. The figure comes from a fall 2025 survey from executive search firm B.E. Smith of 703 healthcare executives, a majority of whom worked in hospitals or health systems. In total, 27% of respondents were C-suite leaders, and the majority were directors or managers. While it is likely many survey respondents will ultimately not leave their organizations, the risk of losing strong leaders is present, according B.E. Smith. How do hospital and health system CEOs maintain stability amid a C-suite exit? Becker's connected with four CEOs who shared their must-do strategies in the first 30 days following a C-suite departure. For Jeff Mengenhausen, CEO of Montrose (Colo.) Regional Health, combining a disciplined succession plan with a "commander's intent" is a strategy he learned while serving as a Navy SEAL. "Every senior role should have a clear successor identified in advance, allowing you to immediately establish interim leadership and maintain operational continuity without hesitation," Mr. Mengenhausen said. "I then align the team on three to five critical priorities, define decision boundaries, and over-communicate through direct rounding and consistent updates. The result is speed, stability and a team that stays focused and confident, often emerging more aligned and resilient than before." Investing in culture each day allows an organization to remain confident it will get through a transition together, according to Katrina Keefer, president and CEO of Tuscaloosa, Ala.-based DCH Health System. "Being visible and transparent with clear communication overcomes many obstacles, even if you aren't yet sure of your plan," Ms. Keefer said. "Therefore, the time to figure out how to handle a C-suite transition isn't when it happens, but instead is now. A culture trusting of its leader will usually result in stability, trust, and no disruption to patient care." Paul Hiltz, president and CEO of Naples (Fla.) Comprehensive Health, also pointed to communication as a key priority. "I focus on being visible and transparent, while quickly putting a trusted interim leader in place with clear decision rights who can identify division of responsibilities, so teams know exactly where to turn," Mr. Hiltz said. He pairs that with brief updates, which helps maintain trust and stability while reinforcing where the organization is headed and what the near future looks like. "Continuing to communicate our vision, and remaining focused on our mission, keeps the organization focused and operations moving forward without disruption," Mr. Hiltz said. Like others, Kurt Barwis, president and CEO of Bristol (Conn.) Health, starts by ensuring there is an interim reporting relationship for all the departing executive's direct reports. "While that is a critical step, I also access the balance of my executive team for opportunities to expand their knowledge and experience, not just on an interim basis," he said. It may not always be necessary to replace the executive who left, he said. "I personally believe that it's my responsibility to give the broadest exposure to each member of my executive team not just for their own personal benefit, but to the benefit of the organization and as part of the succession plan for my own role," he said. Healthcare CEOs often come from a nontraditional background of education and experience, Mr. Barwis said. He came from a financial background and was fortunate to have CEOs who gave him the opportunity to take on diverse responsibilities, making him more of a utility player while building an extensive knowledge base for strategic thinking. "I want a team of utility players that possess broad knowledge and experience so we don't miss a beat when someone moves on, including myself," he said. "The result has been executive team stability, the ability to execute key strategies and tactics, build trust in leadership and positive employee engagement at all levels." n

• Cover