Russell Reynolds Selected to Find CEO for Tenet Healthcare
September 11, 2017 – As the healthcare industry continues its transformation, talent management remains a top priority. A shortage of physicians and other clinicians is one matter. But healthcare organizations must also fill new and expanding leadership roles to carry out strategic initiatives in response to reform efforts and whatever changes Congress may produce. This has created a high demand for top-notch leaders in the sector.
Recently, Tenet Healthcare Corp., one of the largest for-profit hospital chains in the nation, announced that its chairman and chief executive, Trevor Fetter, will be stepping down. The move comes amidst shareholder pressure stemming from Tenet’s recent poor performance. The organization enlisted Russell Reynolds Associates to find its next leader.
“The changes announced today will ensure Tenet remains focused on providing high quality care to patients, innovating in ways that meet the demands of today’s healthcare market, and driving operational and financial performance in a manner that maximizes shareholder value,” said independent lead director Ronald A. Rittenmeyer. “The board of directors thanks Trevor for his significant contributions to Tenet and appreciates his commitment to remain with the company during the transition period.”
“I look forward to working with the rest of the board to conduct a thorough search process that will identify a new chief executive to guide Tenet into the future, and ensure that during this period the company stays on track with plans to drive operating performance improvement, reduce leverage ratios, and provide quality healthcare to the patients and communities we serve.”
Recent Struggles
The move comes weeks after Tenet’s stock tumbled in the wake of the Dallas-based health system reporting a higher-than-expected second quarter loss and slashed its revenue forecast.
In March, Tenet Health and the Detroit Medical Center (DMC) spent $1.2 million correcting problems with dirty surgical instruments, which came to light after an investigation by the Detroit News last year. The report traced back dirty, broken and missing surgical instruments at Detroit Medical Center’s five midtown hospitals for at least 11 years. In May, leaders from DMC and Tenet Healthcare said the surgical instrument issues were resolved for a total cost of $1.6 million.
Tapping Outside Talent for Life Science and Healthcare
For these top 50 executive recruiters working in the life science and healthcare sectors, the last decade has been one of transformation. Pressure on pricing, regulatory changes, emerging innovations, growth, and an uncertain political environment have all helped shape a new field of play.
| Top 50 Ranking |
Tenet Healthcare Corporation is a diversified healthcare services company with nearly 130,000 employees. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International, the company operates 77 general acute care hospitals, 21 short-stay surgical hospitals and over 460 outpatient centers in the U.S., as well as nine facilities in the U.K.
The global healthcare industry is undergoing a turbulent transformation, making the need for excellent boards and executive teams more important than ever. Russell Reynolds’ consultants recruit, develop and advise board members, CEOs and senior functional leadership for leading healthcare enterprises within biotechnology, healthcare services, medical devices and diagnostic, pharmaceuticals and public health systems.
The search firm’s public-sector, trade and associations practice group serves a wide variety of public-sector and not-for-profit organizations, related public bodies, regulators and government-owned companies. It also serves the executive leadership needs of global charities, healthcare providers and local government and trade associations.
Active Healthcare Sector
The U.S. healthcare system has undergone dramatic reform, shifting towards a team-based care model driven by value-based reimbursements and capitated contracts for population health management. “As a result, healthcare organizations are undergoing major clinical, operational and technological transformations, causing organizations to re-evaluate the kind of business and clinical leaders they need to successfully deliver care in this new environment,” said John Gramer, president of healthcare focused recruiters Cejka. “At the same time, the U.S. is facing increasing demand for healthcare services, thanks to the aging population and surge in the newly insured, and not enough physicians to meet that demand.”
“So, healthcare organizations are looking for expanded skill-sets in one of the most resource-constrained employment markets in decades,” he said. “The result is fierce competition for top healthcare talent, and growing demand for organizational design, succession planning and search services to help define and build the healthcare leadership teams of the future.”
“We are in one of the most competitive and complex healthcare employment markets in decades,” Mr. Gramer said. “Both healthcare leaders and practicing clinicians have greater career choices than in the past. Healthcare reform has created additional opportunities for healthcare leaders to oversee care coordination, utilization management, employee health, and population health.”
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Will Schatz, Managing Editor – Hunt Scanlon Media
