Skaggs closing in on new CEO

If all goes according to plan, Skaggs Regional Health Center should ring in the New Year with a new CEO.

"We're on time and on task," said Branson attorney David Smith, vice chairman of the hospital's Board of Directors.

An eight-member executive search committee that's been meeting since June has invited three candidates back to Branson for in-person interviews later this month, said committee chairwoman Ann McDowell, a Skaggs board member of seven years. The trio of finalists were among eight candidates who visited Branson in September for a first round of interviews, said McDowell, a Branson marketing consultant. The hospital hired Chicago-based executive search firm Witt/Kieffer to guide the process, she added.

Skaggs has been without a CEO since early March, when Stephen Erixon abruptly resigned after nearly three years at the hospital's helm. Erixon's resignation was announced by board Chairman Dennis Newkirk, who said the hospital would not comment on Erixon's reasons for leaving. Erixon joined Skaggs in July 2006 from Baxter Regional Medical Center in Mountain Home, Ark., where he was president and CEO.

Skaggs faltered financially during Erixon's tenure.

In fiscal 2007, the hospital suffered a $4.5 million loss, much of which was attributed to $8 million in bad debt from uninsured patient care, according to previous Springfield Business Journal coverage. Skaggs cut 11 full-time positions last December and reduced senior managers' salaries by 10 percent effective Jan. 1.

The cutbacks, however, continued after Erixon's departure. In late March, the hospital laid off 36 full-time employees - primarily in support and administrative roles - and eliminated another 17 positions through attrition, capped off by a hiring freeze that has since lapsed. The hospital currently employs 1,070 people.

Skaggs also hired FTI Healthcare, a Tennessee-based consulting firm, to assist management with the restructuring.

Under interim CEO Joan Phillips, the hospital's financial condition has improved, as has the relationship between the administration and medical staff, said Dr. Robert Blackshear, an anesthesiologist and one of two physicians serving on the search committee.

"They have done a very good job," he said. "We have now gone into a positive cash-flow situation, which everybody's extremely proud of. The whole tone of the hospital has changed to a very positive tone."

The interim administration is communicating with physicians again, seeking their input and keeping them in the loop about decisions that could potentially affect them, Blackshear added.

"Under a past administration, we did not feel like we were engaged. And many times, we felt like we were the last to know," he said. "You will find that at Skaggs, that will not happen again."

Phillips, who has apparently expressed interest in the permanent CEO position but declined to be interviewed for this story, is an independent contractor who was recommended by FTI Healthcare, according to Skaggs media relations specialist Michelle Leroux.

McDowell would not say whether the committee was considering Phillips nor would she identify the three finalists - all of whom are full-time employees elsewhere in the Midwest. She did, however, share hiring criteria established by the search committee.

Skaggs is seeking someone with a graduate degree in hospital administration and at least 10 years of experience at the senior administrative level. The new CEO also should be an open, articulate and participatory leader who's capable of building relationships at all levels, especially medical staff, McDowell said. The right candidate also will possess a strong understanding of finances and compensation models, she added.

"Running a hospital these days is very complicated," McDowell said. "We need it all. We need a wide variety of skills and abilities and a proven track record."

Search committee members who spoke with SBJ noted the impressive caliber of candidates vying for the job, and McDowell said the panel is proceeding carefully to avoid any missteps that could have lasting consequences.

"There certainly is a little bit stronger feeling of responsibility and desire and necessity for making a very good choice this time around," she said. "I think we feel that burden even more so."

Blackshear said he and the 160 Skaggs physicians he represents on the search committee are hopeful the new CEO will embrace the health center's regional mission, which was cemented with a name change earlier this year.

Expanded medical programs, a larger hospital and the possible addition of a multidisciplinary clinic in Harrison, Ark., are among opportunities that lay ahead for Skaggs, Blackshear said.

"We want to get into new areas," he said. "We aren't just satisfied with where we are. We want to be truly recognized as a regional medical center ... with an outreach far more than what we have right now."

McDowell said the board is expected to take a vote on the committee's recommendation next month.

The board also would have to approve the compensation package extended to the top candidate, but that vote won't likely occur until January, she said.[[In-content Ad]]