There are several instances where a hospital might be enduring a change in chief executive leadership. CEOs that announce sudden retirement, a promotion to a larger hospital or health system or personal matters are potential reasons a hospital needs to find an interim CEO, but there are other reasons hospitals need a quick CEO succession plan in place, says Don Whiteside, managing director of executive search and business development for HFS Consultants.
Mr. Whiteside says another major cause for sudden hospital CEO displacement is a difference of opinion in strategy and direction between the board of directors, the hospital medical staff and the CEO leading the hospital. "When there's a vacancy in the CEO chair, it's often because there is some kind of crisis," Mr. Whiteside says. "[The previous CEO] may not have left willingly or via retirement, and it could be indicative of problems in an organization. Boards of hospitals must make an excellent choice to solve some of the organization's problems."
A period of system reevaluation
There are several things hospitals need to focus on when finding an interim CEO, especially if the hospital is enduring financial or organizational troubles. However, a hospital first must take a step back and reassess the hospital's mission. "The transitional period between CEOs is often an excellent opportunity for hospitals to clean up old issues, reevaluate old strategies and make a proactive change for the long-term health of the organization," Mr. Whiteside says.
The situation of having an interim CEO often lends itself as an outlet to solve problems a hospital may have, he adds. After there is clarity within the organization of where the hospital needs to be, the search for the permanent leader can proceed.
Interim CEO criteria
A convenient way to find an interim CEO for a troubled hospital is to look internally. Mr. Whiteside says it makes for an efficient and economic choice to move an internal executive, such as a CFO or COO, up to the interim CEO status. However, not all hospitals — especially smaller institutions going through sudden changes — have the resources or personnel to promote someone from within. If promoting internally, the organization must make sure the internal candidate fits the reevaluated strategies, Mr. Whiteside says. If not, it may be wiser to look outside the organization.
Some hospitals looking for outside help may be targeting an executive who can come in for a four-to-eight-month period and make significant changes in the relatively short period of time through bold decision making. Sandy Haskins, interim CEO at the 49-bed Sierra Kings District Hospital in Reedley, Calif., says he was not brought in to babysit the hospital. He was brought in to help the hospital's struggling finances. "Strong decisions need to be based on turnaround scenarios and what you can do operationally and strategically within the community to engender public support," Mr. Haskins says.
Aside from demonstrated success in financial, physician and community relationships, Mr. Whiteside says there are other criteria an interim CEO — internal or external — must have. The interim CEO must be a good communicator who is not afraid to voice all concerns and propose different approaches to the burning issues. For example, the interim leader has to face the problems agitating the medical staff or union and do so in a way that commands respect and moves toward results. "It's a very important point and very common skill set among senior executive leadership," Mr. Whiteside says. "You have to find people that meet that criteria and work through processes of getting everyone at least accepting of solutions."
The hospital's future
While interim CEOs are centered on rectifying the hospital's immediate problems while a search for a permanent CEO takes place, Mr. Haskins says interim CEOs still must look to the future to make the transition as smooth as possible. When he joined Sierra Kings, he realized the hospital's net revenue base was very low, and with a main facility that was turning nearly 50 years old, he had to think of ways to reinvest into the hospital and to keep the hospital viable for the future. In this instance, Mr. Haskins, the board of directors and the community approved a sale to Hanford, Calif.-based Adventist Health Central Valley Network. He says the struggling finances made him realize a partnership was in the best interest of the hospital, its patients and its surrounding community.
Regardless of a CEO's circumstances, he or she should always pay attention to what might be coming, he adds. "Interims need to think long-term about what [the hospital] can do to make sure it has security 15 to 20 years down the road," Mr. Haskins says. "Don't look through rear view mirror — look through the windshield."
Mr. Haskins says there is no one-size-fits all solution for hospitals looking for an interim CEO. When it comes time to find the hospital's new permanent CEO, Mr. Whiteside adds that a hospital must take everything into account, including the successes or shortfalls of the interim. "The board of directors' choosing, retaining, evaluating and deciding on whether to keep or let go of a CEO is one of the most important things they can do," Mr. Whiteside says. "They must be careful and patient on what they do because it has a huge impact on the community."
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Mr. Whiteside says another major cause for sudden hospital CEO displacement is a difference of opinion in strategy and direction between the board of directors, the hospital medical staff and the CEO leading the hospital. "When there's a vacancy in the CEO chair, it's often because there is some kind of crisis," Mr. Whiteside says. "[The previous CEO] may not have left willingly or via retirement, and it could be indicative of problems in an organization. Boards of hospitals must make an excellent choice to solve some of the organization's problems."
A period of system reevaluation
There are several things hospitals need to focus on when finding an interim CEO, especially if the hospital is enduring financial or organizational troubles. However, a hospital first must take a step back and reassess the hospital's mission. "The transitional period between CEOs is often an excellent opportunity for hospitals to clean up old issues, reevaluate old strategies and make a proactive change for the long-term health of the organization," Mr. Whiteside says.
The situation of having an interim CEO often lends itself as an outlet to solve problems a hospital may have, he adds. After there is clarity within the organization of where the hospital needs to be, the search for the permanent leader can proceed.
Interim CEO criteria
A convenient way to find an interim CEO for a troubled hospital is to look internally. Mr. Whiteside says it makes for an efficient and economic choice to move an internal executive, such as a CFO or COO, up to the interim CEO status. However, not all hospitals — especially smaller institutions going through sudden changes — have the resources or personnel to promote someone from within. If promoting internally, the organization must make sure the internal candidate fits the reevaluated strategies, Mr. Whiteside says. If not, it may be wiser to look outside the organization.
Some hospitals looking for outside help may be targeting an executive who can come in for a four-to-eight-month period and make significant changes in the relatively short period of time through bold decision making. Sandy Haskins, interim CEO at the 49-bed Sierra Kings District Hospital in Reedley, Calif., says he was not brought in to babysit the hospital. He was brought in to help the hospital's struggling finances. "Strong decisions need to be based on turnaround scenarios and what you can do operationally and strategically within the community to engender public support," Mr. Haskins says.
Aside from demonstrated success in financial, physician and community relationships, Mr. Whiteside says there are other criteria an interim CEO — internal or external — must have. The interim CEO must be a good communicator who is not afraid to voice all concerns and propose different approaches to the burning issues. For example, the interim leader has to face the problems agitating the medical staff or union and do so in a way that commands respect and moves toward results. "It's a very important point and very common skill set among senior executive leadership," Mr. Whiteside says. "You have to find people that meet that criteria and work through processes of getting everyone at least accepting of solutions."
The hospital's future
While interim CEOs are centered on rectifying the hospital's immediate problems while a search for a permanent CEO takes place, Mr. Haskins says interim CEOs still must look to the future to make the transition as smooth as possible. When he joined Sierra Kings, he realized the hospital's net revenue base was very low, and with a main facility that was turning nearly 50 years old, he had to think of ways to reinvest into the hospital and to keep the hospital viable for the future. In this instance, Mr. Haskins, the board of directors and the community approved a sale to Hanford, Calif.-based Adventist Health Central Valley Network. He says the struggling finances made him realize a partnership was in the best interest of the hospital, its patients and its surrounding community.
Regardless of a CEO's circumstances, he or she should always pay attention to what might be coming, he adds. "Interims need to think long-term about what [the hospital] can do to make sure it has security 15 to 20 years down the road," Mr. Haskins says. "Don't look through rear view mirror — look through the windshield."
Mr. Haskins says there is no one-size-fits all solution for hospitals looking for an interim CEO. When it comes time to find the hospital's new permanent CEO, Mr. Whiteside adds that a hospital must take everything into account, including the successes or shortfalls of the interim. "The board of directors' choosing, retaining, evaluating and deciding on whether to keep or let go of a CEO is one of the most important things they can do," Mr. Whiteside says. "They must be careful and patient on what they do because it has a huge impact on the community."
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