Issue link: https://beckershealthcare.uberflip.com/i/922733
22 22 CEO/STRATEGY Scripps Health to Adopt Regional CEO Model in Effort to Trim $30M in Corporate Costs: 4 Things to Know By Leo Vartorella S an Diego-based Scripps Health will eliminate the CEO position in its four hospitals in favor of two regional CEOs and another in charge of ancillary services. Here are four things to know about the changes at Scripps. 1. A new CEO for the northern region will oversee San Diego-based Scripps Green Hospital, Scripps Memorial Hospital Encin- itas (Calif.) and Scripps Memorial Hospital La Jolla (Calif.). e CEO of the southern region will supervise Scripps Mercy Hospi- tal Chula Vista (Calif.) and Scripps Mercy Hospital San Diego, the same hospital with two distinct campuses. Chief operations ex- ecutives will be in charge of day-to-day op- erations of the hospitals. 2. In addition to the change in leadership structure, Scripps Health plans to implement corporate services reductions with the aim of lowering costs by $30 million. A joint leader- ship dyad model will be established between hospital administrators and physician leaders to align the objectives of both groups. 3. e reorganization comes as Scripps failed to achieve its operating budget last fiscal year for the first time in 15 years. e changes are set to take effect by March. 4. "Scripps remains one of the strongest sys- tems in California. But given reimbursement changes for government sponsored patients, potential elimination of the mandatory pur- chase of health insurance and the many oth- er regulations pushed on hospitals - plus the consolidation of the commercial insurance market, it's clear we will need to change pro- actively or we will certainly have to change down the road reactively," said Chris Van Gorder, CEO of Scripps Health. "We choose to be proactive." n Cleveland Clinic Honors Outgoing CEO Toby Cosgrove With $50M+ Campaign By Morgan Haefner A campaign recognizing Cleveland Clinic's departing President and CEO Toby Cosgrove, MD, secured more than $50 million, the clinic's board of direc- tors chair announced Dec. 2 Here are three things to know. 1. "The Cosgrove Transformation Cam- paign," honoring Dr. Cosgrove's nearly 13 years helming the clinic, is "designed to in- spire innovation, support research, further education and continue to improve the pa- tient experience in areas that donors direct- ed their gifts." 2. Robert Rich Jr., chair of the Cleveland Clinic's board of directors, unveiled the campaign during an event celebrating Dr. Cosgrove's career. More than 300 donors contributed to the campaign in donations ranging from $10 to $5 million. 3. Dr. Cosgrove announced plans to step down from his leadership role in May. Cleve- land Clinic named Tomislav Mihaljevic, MD, president and CEO, effective Jan 1. n Healthcare Organizations Revamp Retirement Plans to Attract Talent By Megan Knowles H ealthcare organizations are revising their retirement plans to re- tain and attract staff and are increasingly updating them to be- come more like those found in the private sector, according to a Transamerica report. Transamerica surveyed 87 hospital administrators and CFOs, which rep- resent healthcare organizations with at least one active defined contri- bution plan, to reach these findings. In its survey, Transamerica found that many healthcare organizations are moving away from 403(b) plans, which are tax-sheltered annui- ty plans found in certain tax-exempt organizations, and moving to- ward 401(k) plans. The number of healthcare organizations that used 403(b) plans decreased from 88 percent in 2015 to 72 percent in 2016. Organizations that sponsor 401(k) plans rose from 38 percent to 49 percent in the same timeframe. Fewer healthcare organizations are sponsoring defined benefit plans. Currently, 27 percent of organizations have defined benefit plans and 38 percent of them have frozen their plans. "Many healthcare organizations have little choice but to freeze their existing defined benefit plans and seek ways to terminate frozen plans," Brodie Wood, senior vice president at Transamerica, told Plansponsor. Among healthcare organizations with defined contribution plans, 70 percent of non-highly compensated employees participate in them compared to 95 percent of highly compensated employees who partic- ipate. Many healthcare organizations are trying to out stretch matches to boost participation in these plans, and 55 percent now automatically enroll participants. n