It's a pivotal moment for healthcare and a leadership transition at one of the largest health systems in the U.S. has captured the attention of executives industrywide.
In May, Rod Hochman, MD, announced plans to retire at the end of the year and pass the baton to Erik Wexler, the organization's president and COO. This transition not only marks the end of Dr. Hochman's transformative 17-year tenure but also the beginning of a new chapter under Mr. Wexler's stewardship.
Dr. Hochman, known for his visionary leadership, has guided Providence through an era of tremendous growth and innovation. Under his leadership, Providence expanded to 51 hospitals, 1,000 clinics, and a workforce of 120,000 healthcare professionals across seven states. His tenure was marked by bold stances on critical issues, including climate change, Medicaid expansion, and technology partnerships, alongside transformative initiatives like the Truveta data consortium.
Providence has a strong reputation for community service, forward-thinking disruption and innovation. Will its mission change with a new leader at the helm? Don't count on it.
"Our 170-year legacy is a testament to the strength and vision of our organization, and Erik is the right leader to build on this foundation," Dr. Hochman remarked during a fireside chat at the Becker's CEO+CFO Roundtable, held Nov. 11-14 in Chicago.
"My goal is to continue the great work already underway, ensuring we maintain progress and focus on what matters most — our patients and communities," Mr. Wexler stated. "The challenges ahead demand discipline, innovation, and a clear focus on transformation."
Mr. Wexler has been working with Dr. Hochman and Greg Hoffman, Providence CFO, to ensure a continuation of partnerships with like-minded organizations to grow. They'll also expand upon the diversified foundation the system has built over the last several years for a financially string system.
"[We'll] stay the course and also figure out the things to stop doing in the future," said Mr. Wexler. "We're always evaluating, is this right for today and should we carry it forward? But I think in the future, what we've spent a lot of time on is how do we not wind services down and just hand them off? How do we find a way to partner with other organizations and expand?"
Providence recently carried out this philosophy with its home care division by partnering with Compass, which is partially owned by Ascension, to apply better protocols, information systems and recruiting to expand home care services. They're also aligning with other health systems in Longitude Health to provide better services through partnerships, focusing first on specialty pharmacy.
Mr. Wexler, who officially assumes the role of CEO on Jan.1, 2025, has been actively preparing for this transition. His journey included a comprehensive listening tour involving more than 4,000 stakeholders, including frontline caregivers, physicians, board members, and executives. Although he has been with Providence for nearly nine years, he didn't want to make the mistake of assuming he already knew everything about the organization.
He told the board he wanted to go out into the field and engage with the frontline caregivers and core leaders. He wanted to meet with executives and board members, as well as physicians.
"I've been on the road for four months, met with 4,000 people, did learn somethings that you may have made assumptions about that weren't exactly correct, and that is going to help us adjust our strategy going forward," said Mr. Wexler.
A defining feature of this transition has been the daily collaboration between Dr. Hochman and Mr. Wexler. Over the past several months, the two leaders have worked closely to ensure a seamless handoff.
"We talk almost every day," Mr. Wexler said. "If it's not coffee together in the morning, it's a call while I’m driving to work. This constant communication has been invaluable in helping me prepare for the role and ensuring continuity for our organization."
This strong partnership has allowed Mr. Wexler to absorb not only strategic insights but also the nuances of Providence’s culture.
"Providence is built on a tradition of learning and collaboration. By working together closely, Erik and I have been able to align on strategies and ensure that our values remain at the forefront," said Dr. Hochman. He will remain with the system as the CEO emeritus and stay chair of Truveta's board.
But once Jan. 1 hits, Mr. Wexler will be in charge.
He inherits a healthcare landscape undergoing rapid change, with Providence poised to lead in critical areas like artificial intelligence, health equity, and innovative partnerships. The health system has a strong partnership with Microsoft and OpenAI.
"I'm really excited about transformation and I think this is a bellwether moment for us in the industry as we take a look at what artificial intelligence can really do for us and the team, and Rod and all of us have been talking about how we take artificial intelligence as a first step to removing the tension our caregivers, our physicians and our APPs have in the work they do," said Mr. Wexler. "If we can just use that as the initial step forward, which I believe we will do at Providence, it will help them provide more and better care than we're already providing to those we serve."
Before ending the session, Mr. Wexler and Mr. Hochman both shared their best advice for leaders in transition.
"When you're transitioning from one leader to the other, love the leader that's there because that leader, to have historical perspective, they've got insight and experience, and too many times people make transitions and they write off the leader before them and just step in thinking they know everything," said Mr. Wexler. "And they don't. I think that has been a huge gift to me."
Mr. Hochman echoed those sentiments.
"Our tradition at Providence is we're a learning organization," he said. "We learn form each other. We try to keep our egos in check, and one of the key words for us is humility. And we don't have all the answers, and I think that's what makes us successful."