May/June 2007

Governing Boards Approve Formation of a Single Market-Based Organization in Kentucky


The governing boards of Catholic Health Initiatives’ four market-based organizations in Kentucky have approved the formation of a single, consolidated market-based organization in the state. The consolidated market-based organization will include Flaget Memorial Hospital, Bardstown; Marymount Medical Center, London; Our Lady of the Way Hospital, Martin; and Saint Joseph HealthCare, Lexington, which includes Saint Joseph Hospital, Saint Joseph East and Saint Joseph Berea. The new market-based organization will have one chief executive and one governing board. “This is a true milestone for these hospitals and for Catholic Health Initiatives,” said Gary Campbell, senior vice president of operations for Catholic Health Initiatives. “The courageous action taken by the members of the governing boards will allow the hospitals to better pursue their shared priorities, build their individual strengths and serve their communities.” Together, the hospitals will form one of Kentucky’s largest health systems. The goals for the new consolidated organization are to:
  • Create work communities of choice in every setting.
  • Deliver quality care in a consistent, reliable manner across the commonwealth.
  • Leverage strengths and speak with one voice on issues of importance to local communities.
  • Grow health ministries and partner with physicians and others to create healthier communities.
  • There are no plans to eliminate or reduce existing services in any market.
Each hospital will have a hospital president, a separate medical staff with a local medical executive committee, and a local hospital council of community members. Hospitals with foundations will have a local foundation governing board, with assurance to community donors that their dollars will be used as they intend. The chief executive officers of the four market-based organizations — Virginia Dempsey, Bruce Klockars, Kathy Stumbo and Gene Woods — began meeting in 2004 to discuss how they could work more closely together to advance the mission and leverage the strengths of their organizations. Their recommendation to consolidate into a single market-based organization emerged from a focused research and planning process. “They determined that consolidation is the best approach to enhance their shared ministry in Kentucky,” said Campbell. In March, the chief executive officers presented their recommendation to a combined meeting of the Executive Committees of their governing boards. The Executive Committees supported the recommendation. On June 2, the members of all the market-based organization boards met to participate in a mission-driven decision making process led by Carl Middleton, DMin, ND, vice president of ethics for Catholic Health Initiatives. Each board then met separately, and each voted unanimously to approve the consolidation. Members of the congregations who founded the hospitals — the Sisters of Charity of Nazareth, who founded Flaget Memorial Hospital, Marymount Medical Center and Saint Joseph Hospital; and the Sisters of Charity of Cincinnati, who founded Our Lady of the Way Hospital — were also fully informed of the recommendation to consolidate. During the next six months, a Transition Task Force will complete detailed plans for the consolidation. Members of the task force will include the chief executive officer and three members of the governing board from each predecessor market-based organization. The consolidation is expected to occur by January 1, 2008.