Simplifying our leadership structure to support caregivers and patients.
The following message from Rod Hochman M.D., Providence President and CEO, that was sent to all Providence organizations and affiliations and in your individual regional Caregiver News on Thursday, July 21, 2022, but we are republishing to ensure easy access in IS & RESO.
Providence caregivers,
As part of our vision of health for a better world, the Providence family of organizations has been working to create a more sustainable model of health care by 2025, one that makes safe, high-quality care accessible and affordable for everyone. We began this journey before the pandemic, but it has become even more imperative today as health systems across the country face a new reality.
External forces — including the national shortage of health care personnel, inflation and global supply chain disruptions — have strained patient care operations throughout the U.S. while driving up the cost of care. Meanwhile, reimbursement from insurers has not kept pace, resulting in unprecedented net operating losses for health systems nationally.
Having served the Western U.S. for more than 165 years, Providence has lived through other economic downturns, past pandemics, and periods of political and social unrest. The Mission endured because our founding sisters responded to the times with faith, foresight and flexibility, making hard choices when resources were constrained and not letting “past practice constrict the vision of what is best for the future.”
A leaner executive team
Now, it is up to us to write the next chapter. As resources become increasingly scarce, supporting caregivers and meeting the needs of patients remain our top priority. Recently, we completed a thoughtful ethical discernment and established guiding principles to help the system and our ministries and affiliates navigate the times consistent with our values.
The process led to a more streamlined operating model that will free-up resources for the frontlines, make our ministries and affiliates nimble enough to adapt to a fast-changing world, and empower local decision-making to meet the unique needs of each of their communities.
A key aspect of this change is grouping our existing seven regions into three new divisions. The groupings are based on similar strategies, demographics, as well as revenue size, and will reduce the number of executives in our family of organizations by moving our system from seven executive leadership teams to three.
Erik Wexler, who has been serving as president of operations and strategy for our southern regions, will take on a new role as chief operating officer for Providence. He will oversee the following three new divisions, with the support of these leaders:
- South (Southern and Northern California) – Kevin Manemann will serve as the south division chief executive. He’ll maintain his responsibilities for Southern California operations, with Laureen Driscoll continuing as the regional chief executive for Northern California reporting to Kevin.
- Central (Oregon, Eastern Washington/Montana, Texas/New Mexico) – Joel Gilbertson will serve as the central division chief executive. He’ll maintain his responsibilities for Eastern Washington/Montana operations. William Olson will serve as the regional chief executive for Oregon, and Walt Cathey will continue as the regional chief executive for Texas/New Mexico. Both will report to Joel.
- North (Puget Sound and Alaska) – Guy Hudson, M.D., will serve as the north division chief executive. He’ll retain his role as president and CEO of Swedish and will continue to maintain his responsibilities for the Puget Sound region located in Western Washington. Preston Simmons will serve as regional chief executive for Alaska reporting to Guy.
With the above leaders identified, the next step is to begin the process of selecting other members of the divisional leadership teams. Meanwhile, our shared services will adapt their structure to support the leaner operating model.
Another key change is that leadership for our Physician Enterprise, Ambulatory Care Network and Clinical Institutes is being consolidated under one executive leadership team, led by David Kim, M.D., who brings a strong clinical foundation and track record for thinking innovatively to drive quality, value and performance.
Thank you
As the new divisional leadership teams are selected, please know we are absolutely committed to going through this process with respect and compassion for each person involved. We will also keep the focus on retention and recruitment for essential roles, especially on the frontlines. Each of you continue to give your heart and soul and we remain deeply grateful for your incredible service.
Recognizing this is a time of heightened anxiety for many as we face severe staffing shortages and capacity issues, I want to remind everyone of the mental health and well-being resources available through Providence. I encourage you to take advantage of them.
While the next six months will be challenging, the steps we are taking will allow us to hit the ground running in the New Year, putting us well on our way to Destination Health 2025. Together, we will continue supporting caregivers and serving patients in local communities throughout these difficult times while shaping the future of health care nationally. Thank you.
Rod Hochman, M.D.
President and CEO