In late March, Norman (Okla.) Regional Health System’s board of trustees voted to keep the system independent after it shared plans in February to find a potential partner or sell amid financial challenges.
The board’s decision to remain independent came alongside the decision to accept the resignation of co-CEO and CFO Rick Wagner. Aaron Boyd, MD, Norman Regional’s other co-CEO, became president and co-CEO March 24.
Becker’s connected with Dr. Boyd to discuss the board’s decision and the system’s path forward with a renewed focus on financial sustainability. He also shared how Norman Regional plans to uphold its commitment to delivering community-focused care in south central Oklahoma.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: Can you share some of the deciding factors that went into keeping Norman Regional independent despite recent financial challenges?
Dr. Aaron Boyd: Norman Regional Health System was founded 78 years ago. Over these three quarters of a century, we have evolved from a community hospital into a regional health system that serves not only Norman but also the southern half of the state of Oklahoma. Despite our growth, we have never lost our roots and our personal touch with our friends and neighbors that we serve.
Home to the University of Oklahoma, Norman is a college town and the third-largest city in Oklahoma. The majority of our staff and physicians live and raise their kids here in Norman. So, NRHS is not only their employer, it is where they take their own families for medical care. For all these reasons, this decision is very personal. After 78 years of governing ourselves, our board of trustees has voted to take a solid swing at remaining independent.
Q: As you step into the sole CEO role, what are your immediate priorities for stabilizing the system financially? How do you plan to achieve these?
AB: Will Rogers famously said, “If you find yourself in a hole, stop digging.” We must take immediate and strategic steps to improve cost containment, operational efficiency and financial discipline. This will involve difficult decisions regarding operations and expense reductions. These decisions are agonizing, especially in a close-knit hospital like NRHS. But we believe it is better for these changes to be made by us, the ones who truly know our entity, versus a buyer that would make formulaic cuts.
We have begun working with healthcare consulting firm Plante Moran, which is performing a deep dive into our labor productivity, supply chain optimization, service line analysis and revenue cycle.
NRHS has also hired an interim Chief Financial Officer, David Meador. David has more than 30 years of experience in healthcare, private equity and not-for-profit organizations, specifically in turning around hospital finances. David has extensive knowledge, experience and technical skills in accounting, auditing, financial management and information technology.
Q: As an ICU physician who served on the front lines during COVID, how will that experience and your clinical background inform your leadership during this critical moment of transition?
AB: Twenty-five years in the trenches as an intensivist will change a person, as you make life and death decisions every day. Working in the ICU requires seeing through extraordinarily complex situations and honing in on the few immediate things that are truly critical to make key decisions. For better or worse, I am accustomed to working in a high-stakes, high-stress environment where hard decisions are required. Most importantly, working at the bedside is a reminder that there is truly only one priority for any hospital, and that is the patient. The COVID-19 pandemic certainly shone a light on that fact.
I am in a unique position in that I have worn both clinical and executive hats at NRHS. I understand what physicians, nurses and our healthcare team require to do their best work at the bedside. Simultaneously, after 18 years of serving in physician leadership and executive roles here, I understand the financial landscape in which we struggle to survive. Independent, medium-sized health systems like ours cannot survive unwise operational decisions or become enamored with off-topic expenditures.
Q: How do you plan to maintain continuity of care and employee morale during this leadership transition?
AB: Norman Regional will maintain its continuity of care during this leadership transition by continuing the path we have already forged for patient quality and safety. Many key members of our executive team are still in place: Brittni McGill, Chief Operating Officer and Chief Nursing Officer, Keith Minnis, Chief People Officer, and Elaine Purvis, Chief Strategy Officer. Additionally, Joe Voto, MD, has been added to the team as Chief Medical Officer. Dr. Voto previously served as Chief of Staff, and has twenty years of experience at NRHS in many of our areas, including Surgery, the emergency department, outpatient clinics and his private practice. I am proud of this action-oriented team, and also our physician staff, who together are fiercely driven to remain independent and keep quality patient care as our guide.
Employee morale is of critical importance. We fully realize this is a concerning time, and we are deeply committed to complete transparency. Our staff is the backbone of the excellent and personal care we provide at NRHS. Our desire to remain independent stems from our desire to keep our team together and do all we can to honor and support them in their work.