November 2001

Meet the Leader of Our Lady of the Way Hospital, Martin, Kentucky

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Kathy Stumbo President and Chief Executive Officer

Kathy Stumbo has been president and chief executive officer of Our Lady of the Way Hospital since May, but she has been with the hospital since 1992, when she was hired as associate administrator. In 1996, she was named chief operating officer. "I have many of the same internal responsibilities I had as chief operating officer, but now I have more responsibilities that are external to the organization," she said. "I’ve had positive experiences making helpful new contacts within Catholic Health Initiatives."

Stumbo, a native of eastern Kentucky, graduated from the University of Kentucky with a bachelor’s degree in business administration. She also has a master’s degree in public administration with a concentration in health administration, also from the University of Kentucky. Her husband, Anthony, is a physician, and they have two children, Tyler, 5, and Taylor, 1.

Stumbo said that, like many small rural hospitals, Our Lady of the Way faces challenges related to reimbursement and profitability. Last year, the hospital converted from a 39-bed primary care facility to a critical access facility with 15 acute care beds, 10 swing beds and 13 transitional care beds. "The conversion improved our reimbursement environment and has been invisible to the community in terms of service offerings," she said. The facility also operates seven rural health clinics and a home health agency.

Our Lady of the Way serves many individuals who need charity care. "Our charity care and community benefit for 2001 was about $3 million, equivalent to 23 percent of our net patient services revenues," said Stumbo.

Our Lady of the Way has been nationally recognized for clinical excellence and efficiency. In 1999, the hospital received accreditation with commendation from the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and was named one of the top 100 hospitals in the country. Last August, Our Lady of the Way achieved JCAHO scores of 98 for the hospital and 99 for home health. "It is gratifying to lead an organization with such commitment to mission and quality," said Stumbo.