Blue Hill
Hospital cites successful turnaround as it searches for a permanent CEO

by Faith DeAmbrose
At it’s earliest stage, the search for a Chief Executive Officer for Blue Hill Memorial Hospital is underway signaling to the community, say hospital officials, that a turnaround plan created over the last year has led to firm financial footing.

The search to replace interim CEO Dr. Erik Steele, who has held the position for 13 months without receiving pay, comes after a turbulent year that saw employee layoffs, reductions in operating and non-essential expenses and a push to put structures in place to increase the revenues coming into the organization. Steele replaced former CEO Tim Garrity who was unexpectedly relieved of his position December 3, 2008, in what was deemed a necessary leadership change by Eastern Maine Healthcare System officials.

The search will be conducted through the offices of the parent organization, Eastern Maine Healthcare Systems, but will involve the hospital’s board of trustees and an external search committee.

According to Michelle Hood, CEO of EMHS, a position description for the job has not been formally released, nor has a search committee been formed. “The process can last three to six months,” she said, and has many components. Hood said she will meet with the hospital’s board of trustees in the coming week to begin the process and that once a suitable candidate or candidates have been found the trustees, hospital staff and selected members of the community will be involved in the interview process. Hood will have the final say in the hiring of a new CEO.

“This last year has been huge” in terms of seeing a turn around, said Charlie Hatfield, chairman of the BHMH board of trustees, “and the next CEO will be equally important because the improvements made will need to take root.” Hatfield said that a hospital-wide retreat is scheduled February 1 and at that time key members of the hospital team will review the current operations and further discuss the CEO search.

He said that while the organization has been able to maintain fiscal solvency, he is concerned about the future impact in light of budgetary cuts expected to come from the legislature as they work to close a $438 million budgetary shortfall. “These cuts, which are expected, if passed, to affect reimbursement rates, limit inpatient and outpatient care for Medicare recipients and push the money owed to hospitals off for another year, could reduce our bottom line by as much as $500,000,” said Hatfield.

Despite larger and uncontrollable concerns, Steele explained, in a recent interview, that the hospital has put in place a solid financial plan and that the major pieces of the turnaround plan have proven successful. “This is certainly a signal that we are ready to move forward,” he said, noting that he is committed to “stay as long as it takes to find a good candidate.”

Once that candidate is found, Steele will return to his position as Chief Medical Officer for EMHS but said he will still see patients on occasion in BHMH’s emergency room, which is something he has been doing for the last two decades.

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