Nacogdoches Memorial Health Board approves management contract w - KTRE.com | Lufkin and Nacogdoches, Texas

Nacogdoches Memorial Hospital Board approves management contract with outside firm

The Nacogdoches County Hospital district’s board approved a full management contract with an outside firm as a way to obtain more resources, connections and expertise. (Source: KTRE Staff) The Nacogdoches County Hospital district’s board approved a full management contract with an outside firm as a way to obtain more resources, connections and expertise. (Source: KTRE Staff)
A CEO and CFO search for Nacogdoches Memorial will begin in about six months. Currently, the hospital is developing an action plan and undergoing an operation assessment. (Source: KTRE Staff) A CEO and CFO search for Nacogdoches Memorial will begin in about six months. Currently, the hospital is developing an action plan and undergoing an operation assessment. (Source: KTRE Staff)
Community Health Corporation, based in Plano, has entered into a full management contract with Nacogdoches Memorial Hospital Health. (Source: KTRE Staff) Community Health Corporation, based in Plano, has entered into a full management contract with Nacogdoches Memorial Hospital Health. (Source: KTRE Staff)
Interim CEO Gary Kendrick, a CHC employee, says CHC’s management is best for the hospital. (Source: KTRE Staff) Interim CEO Gary Kendrick, a CHC employee, says CHC’s management is best for the hospital. (Source: KTRE Staff)
NACOGDOCHES, TX (KTRE) -

Nacogdoches Memorial Hospital Health added a significant link to its chain of comma

The move means top hospital executives will no longer employees of the hospital district.

Nacogdoches Memorial Hospital Health is taking its consultation relationship with Plano based Community Health Corporation into the longer-term relationship of full time management services.

CHC'S Gary Kendrick is serving as Memorial's interim CEO for the second time in just 3 1/2 years. Once again, the hospital prepares to search for two chief executives, but this time ...

"The CEO will be a CHC employee and the CFO will be a CHC employee.,” Kendrick said.

Kendrick emphasizes the hospital district's board won't lose control. 

"The CEO actually will report to both the board and CHC,” Kendrick said.

Answering to a board and a management firm could create a concern of having too many bosses. It’s quite the contrary says Kendrick, an experienced administrator.

"I have told people as a CEO, in today's times, I would not accept any job as a CEO without either a management company or support at a corporate level,” Kendrick said. “The day of an independent hospital and a CEO, there are fewer and fewer every day."

For several years, hospitals of all sizes, but particularly government hospitals, have signed on with management services. 

"So many hospitals are either corporate owned or something like that,” said Lisa King, a Memorial Hospital Health Board member. “We don't have those other resources and with the changes in health care such as they are, just having other people help us keep up with everything that's going on is what we wanted to do."

The hospital district currently pays CHC $20,000 a month for consulting services. The firm would be reimbursed the salaries of both executives. Kendrick says savings through a CHC purchasing contract and the introduction of efficient operating methods will more than cover the annual cost. 

"It does sound like a lot of money, but in the end it's best for the hospital,” Kendrick said.

Here is the current timeline for the changes at Nacogdoches Memorial Hospital Health. 

An action plan and operational assessment are under development.  

Last week staffing was addressed. Any overstaffed areas will try to be remedied through attrition. 

In about six months an executive search will begin. CHC is expecting to receive about 100 resumes.   
    
Ultimately, up to five candidates will be interviewed by the hospital board. 

The entire vetting process could take up to five months from the time it begins. KTRE will have any updates regarding the search.

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