Issue link: https://beckershealthcare.uberflip.com/i/718038
36 CEO / STRATEGY & LEADERSHIP Merger of Equals: How Hackensack Meridian Health Landed on a Co-CEO Model By Heather Punke I n finding their spouse, many people claim to have found their "better half " — some- one who complements their strengths and weaknesses. And perhaps there is no better term to describe the merger between Hack- ensack University Health Network and Me- ridian Health in New Jersey, which became final June 21 aer it received legal approval. e two systems brought complementary strengths to the table when they signed a definitive agreement to merge in 2015: Hack- ensack brought academic strength, plans to open a private medical school with South Orange, N.J.-based Seton Hall University and a highly recognized academic medical center in Hackensack University Medical Center; Meridian boasted a large integrated network of hospitals and ambulatory care services, in addition to experience in population health and accountable care. In what seems to be a merger of equals, both systems also brought long-time leaders into the merger — Robert Garrett, president and CEO of HUHN, and John Lloyd, president and CEO of Meridian Health. Both have been with their organizations for roughly 30 years. When both of the organizations' respec- tive boards wanted their leader to be chief executive of Hackensack Meridian Health, they decided to embark in a rare relationship: become co-CEOs. Mr. Lloyd and Mr. Garrett will both serve as CEO of Hackensack Meridian Health for two and a half years, until Mr. Lloyd transitions out upon his retirement and Mr. Garrett assumes sole leadership of the combined net- work, which boasts nearly 28,000 employees and over 4,000 licensed beds. Ahead of the official merger, Mr. Lloyd and Mr. Garrett sat down with members of the Becker's editorial team to share why they believe the co-leadership model will work for Hackensack Meridian Health, talk about why they're taking a road trip across New Jersey and give tips for other hospital leaders navigating through a merger. Note: is conversation has been edited for length and clarity. Question: How do you see the co- CEO model working? John Lloyd: Early on, we took a blank piece of paper, and each of us put down what we thought we should do and what we thought the other person should do. People said, 'What are you doing?' And I told them, 'Well, you didn't hear the results.' We took a blank piece of paper and turned them over and it was a 90 percent match. I rest my case. Bob Garrett: We couldn't believe it when we saw it. JL: If you think about it, we have different strengths. How do you think we divided it up? Hello! In other words, I'm going to oversee all the nonhospital businesses, I'm going to oversee population health and be involved in the foundations. And Bob has physician enterprises, the medical school and the hospitals. BG: We actually put that down. I put down those three divisions for John and those three for me and he did the same. It was like, wow… Why we strongly believe it's going to work, is, first of all, we've known each other a long time and we know that we can work together. Second, that sheet of paper tells it all, because we each really excel in different areas of the enterprise. We'll learn from each other, but I think it's going to be a great division of responsibility, and we'll work together to make sure Hackensack Meridian Health in its entirety becomes not only transformational for New Jersey, but really a leader for the country. ere are so many elements here that I don't think a lot of health systems or networks have today. Q: Are you sharing an office? BG: No. Let's not go too far. [Laughter] e offices will be close. Q: What led to the co-CEO format? JL: Bob's board wanted him to be CEO of the entity, and my board wanted me. So, you have two choices. You either work something out or you separate. BG: e other thing about the co-CEO model and why I think this one in particular is important is because of the emphasis on integration. We're going to be co-CEOs for two and a half years, and what do you do in those first years besides run your business? You're going to be involved in continuing the integration of these two organizations into one. And because we're both long incumbents in our respective organizations, who knows those organizations better than we do? [John] knows Meridian like the back of his hand, and I know Hackensack like the back of my hand. at's going to be a huge advantage. Keeping that continuity in place as we're inte- grating is going to be really really important. It actually has fallen very nicely into place. Q: What's your first plan of action after day one of the official merger? JL: We will go to about 25 different [net- work] locations and we will spend time sharing information with our team members, our leaders and physicians and it's going to be pretty much nonstop, early in the morning through the evening. BG: Aer the first week, the priorities will be carrying out the hard work the steering teams have put in; to really start executing [the in- tegration initiatives]. Because up to the point where you become a legal entity, you can do a lot of planning, but you can't execute. So we're going to start to carry out a lot of those plans. ere are some great new initiatives in our market that we're able to get to once we're a new entity. ere are opportunities to grow and form new partnerships, and that will be one area we will explore as well. Q: Why did you think it was import- ant to go on the road and meet with people during the first week? JL: It's our culture. We've been…constantly communicating, written or in person. Yester- day, I was serving hot dogs in our corporate offices, even though I was supposed to be working on the merger. at's just us. [Bob] goes to all of his service awards, we do that, each of our hospitals usually has a Christ- mas party or whatever; invariably we're out talking to staff, giving updates. at's just the culture. It's a big commitment. We could find a zillion excuses as to why we can't make vis- its across the system that week. But literally the whole week is blocked out. BG: e other piece with that is the back- bone of our organization is going to be the people. It's about the team members and the doctors, and we have to engage them early