Once More, the Hospital CEO as Scrooge - Cape Cod Healthcare CEO Collected Millions in Severance After Laying Off Hundreds of Health Professionals, and Being Sanctioned by the State Medical Board

The theme of non-profit hospital CEO as Scrooge seems to be persisting in the media even beyond the holiday season.  (Our last post on this theme was in December, 2014).  The previous cases we discussed (also here) involved  marked contrasts between how well top hired managers of non-profit hospitals were doing, and how their institutions were doing.Turning Around the Hospital, but Turning Away Employees The background to this story comes from an article in the Cape Cod (MA) Times from January, 2014.  Cape Cod Healthcare, a regional non-profit hospital system, hired Dr Richard Saluzzo as CEO to turn around the system's troubled finances.Cape Cod Healthcare had 'a pretty significant economic turnaround' under Salluzzo's stewardship, as well as accolades for quality of care, [board chairman Thomas] Wroe said.'We were really in trouble. He was the architect and foundation of turning that around,' Wroe said.In this case, the turn around seemed to be strictly financial,During his tenure Cape Cod Healthcare's bond rating improved from one grade above junk status to BBB with a favorable outlook.However, the turn around also involved turning away employees,The financial turnaround came in part from cost-cutting measures such as layoffs for about 200 employees and improved billing.More details about these layoffs were in a Cape Cod Times article from 2008,A hospital chaplain and several psychiatric nurses are among the cuts emerging from Cape Cod Healthcare's an...
Source: Health Care Renewal - Category: Health Management Tags: boards of trustees Cape Cod Healthcare executive compensation perverse incentives Source Type: blogs