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About six weeks after Tenet's sale of Hahnemann University Hospital in Philadelphia, a major management shake-up will yield the departures of the hospital's chief executive, chief medical officer, chief nursing officer, chief business development officer and interim chief human resources officer.
According to a staff memo from new parent company American Academic Health System's President Barry Wolfman cited in a local report, CEO Michael Halter will retire April 13; CMO George Amrom will retire June 30; CNO Rosemary Dunn will leave April 1; chief business development officer Robert Pavlich will leave March 31; and interim chief human resources officer Richard Dodsworth will be replaced.
"The departures come as American Academic focuses on a multi-year growth and development strategy for the organization's two Philadelphia region hospitals. Each of these individuals in their own way has made profound contributions to the well-being of Hahnemann University Hospital, as well as the Philadelphia region. We appreciate and are indebted for their many years of service and their thoughtful leadership," American Academic said in a statement.
The changes come roughly six weeks after Hahnemann's former parent company Tenet sold it and St. Christopher's Hospital for Children, also located in Philadelphia, to American Academic for $170 million. The system is an affiliate of Paladin Healthcare. The deal was finalized January 11. No management changes were made at St. Christopher's, the report said.
Tenet has been struggling to reduce its debt load and earlier this year unveiled a major divestiture plan expected to yield more than a billion dollars as well as cost-cutting plans that involved the elimination of more than 2,000 jobs. It also went into contract renegotiation with suppliers and vendors, targeting $250 million in cuts, including a 20 percent reduction of corporate overhead. Tenet said they expect to fully realize the savings by the end of 2018. It also initiated a sale of it's Conifer business, which encompasses 800 hospitals in 43 states, which had been deemed "not a strategic asset."
Tenet has also divested its non-core markets and assets, plus its health plans and post-acute businesses. All told, the divestiture of non-core markets and assets is expected to yield in excess of $1 billion of proceeds.
Tenet posted a net loss of $230 million for the fourth quarter and a $366 million operating loss in the third quarter of 2017.