This creativity, among other reasons, is why Mr. Freudenberger is one of the runners-up for The Hospital Review’s CEO of the Year.
OakBend Medical Center is a 184-bed acute care facility located in Richmond, Texas. It is the only Advanced Trauma Center in Fort Bend County and was recently awarded the Gold Seal of Approval from The Joint Commission as a Primary Stroke Center. The organization has also partnered with M.D. Anderson Cancer Center to run a state-of-the-art radiation facility. Among other things, OakBend is known for Women’s Services which include a birthing center and a Level 2 nursery, while its operating suites and imaging services have the most up-to-date equipment available.
Taking a creative approach to management
According to many of Mr. Freudenberger’s OakBend colleagues, he approaches management at the hospital with creativity and the enthusiasm to improve the hospital financially but just as importantly, to make OakBend an efficient and successful place to work.
“Joe is one of the most creative, physician-friendly CEOs I have seen in action,” a colleague says.
Another says, “Joe is not afraid to make a decision or take chances and is willing to try new concepts and ideas. He is a positive thinker and believes things will always work out. He is also very open to listen to others and their ideas.”
Some other colleagues mention some of Mr. Freudenberger’s unique ideas for improving operations at OakBend.
“‘…Joe is indeed full of creativity and energy and never gives up,” one colleague says. “He leads a great group of department directors who work extremely well with each other. Interestingly, an example of Joe’s creativity is that some of his leadership team is related, not something most other CEOs would do, and he strongly believes this promotes loyalty, teamwork and community.”
Mr. Freudenberger describes his thought process when developing these out-of-the-box techniques by simply saying, “If you aren’t achieving your objectives, you have to do something differently.”
He says that he’ll throw out a radically different idea to his directors in order to “get the creative juices flowing.”
“You need to create energy to see how ‘we can do it differently,'” he says. “Then you can see a way to change. Small steps might get you to where you need to be.”
For example, in order to address the high turnover rates in healthcare, Mr. Freudenberger considered what other organizations in the industry were doing. He came across Medline Manufacturing, a company that decided to keep the production of entire product lines within a single extended family.
“They found that family members do more to hold things together [in a company] than others,” he says. “They maintain a level of excellence and are better at internal discipline.”
After seeing this example, Mr. Freudenberger thought that it might be a good step for OakBend to take, as noted by one of his colleagues.
“We ask our staff to recommend people they trust,” he says of the hospital when trying to fill vacancies. “Often times, they have family members who work out.”
As a result, the employee who recommended the family member does his or her best to ensure that the new employee is up to OakBend’s standards. “Their reputations are on the line,” he says. “They don’t tolerate anything that will damage that.”
Establishing a presence on the floor
Mr. Freudenberger says two of his other creative management ideas have come from an effort to be more visible in the various departments of the hospital.
“Visibility is important with the community and staff,” he says. “You have to get out there at times when people are available.”
For example, Mr. Freudenberger and several members of the executive staff held a 1 a.m. town hall meeting for night shift employees so this portion of the staff population could express any concerns they had.
“Seven p.m. would have been convenient for me but not the night shift because that is when they are just beginning their shifts,” he says. “Instead, we asked them what time they preferred, and 1 a.m. did work. We had around 30 people come and talk with us. It was very productive.”
Another method Mr. Freudenberger has taken to increase his visibility and to motivate staff is to provide a quarterly cash bonus when financial goals are met. Every employee, from housekeeping to clinical staff, receives a $50 bonus if they make their budget each quarter. He makes an effort to personally hand each employee their bonus.
Of this undertaking, one colleague says, “While other bigger facilities in Houston have expanded into our market, Joe and his department directors and board have found a way to thrive and exceed budget month after month. Employees look forward to him personally handing out new $50 bills when budget is beat. Joe values OakBend’s employees first of all, and it shows!”
Mr. Freudenberger uses this face time to see how his staff is handling the different issues of the day, such as questioning staff on patient safety goals. This was one technique he used in preparation of The Joint Commission survey.
“[Asking questions] helps to emphasize quality,” he says. “I can see if the staff is focused and how they answer questions under pressure so they were prepared for the surveyors.”
This technique paid off. The Joint Commission surveyors commented that “OakBend was incredible” and that the staff was “friendly, knowledgeable and did the right things consistently.”
Financial success
In addition to his successes with personnel, Mr. Freudenberger has seen financial success and growth over the past year at OakBend. One colleague says, “Joe has turned this organization around both culturally and financially in just one year. He is dedicated, focused and an excellent leader. What we have accomplished in the last year could not have been done without his leadership.”
Creating an atmosphere of transparency, honesty and collaboration is what he attributes to this success. Regular communications with employees — letters, town hall meetings, making the rounds — has helped the staff to see what their targets should be and feel proud of their own accomplishments as well as the hospital’s.
“Employees should take pride in their work and not just see it as a paycheck,” Mr. Freudenberger says. By building a culture of collaboration, he says that OakBend has been able to succeed in this tough economy.
“It is easier to build volume than to cut costs,” he says. “We try to maintain a high level of quality and customer service, and then we ask physicians to bring in patients. People do respond to these requests. Physicians are pleased when they are asked to bring in business to help the hospital succeed.”
A ‘can-do’ attitude
Many colleagues note Mr. Freudenberger’s can-do attitude. One says, “Joe has demonstrated strong vision and leadership. He is a ‘make it happen’ CEO with excellent business and market knowledge. Joe has a proven track record of success.”
Mr. Freudenberger works to find time to speak with the organization’s entire staff about the critical importance of dedication to excellence.
“This is a conversation I have with everyone,” he says. “You can do anything if you are committed. I tell my children, ‘If you want the A, you must put in more effort.” This perspective extends to his professional life.
“I will not accept ‘no’ as an answer,” he says. He says that he will accept “I’m not willing” as an answer, because that means a person won’t put in the effort required to accomplish a task. However, in his opinion, “‘I can’t’ doesn’t exist.”
As a result of this “make it work” philosophy, OakBend is experiencing extensive growth and is expanding to a second campus this year which will feature full service inpatient care as well as a third campus dedicated to comprehensive outpatient services in Fort Bend. This is impressive, especially since other hospitals across the country have halted or postponed expansions.
Using past experience as a guide
Mr. Freudenberger’s background is in business in finance. He graduated with a bachelor of science in mathematics and economics from Tulane University in New Orleans and received his MBA in finance from Tulane’s Freeman School of Business, where he graduate cum laude.
Prior to becoming CEO at OakBend, Mr. Freudenburger severed as a CFO and a COO at another location.
Mr. Freudenberger’s experience as a CFO has helped him to become a successful CEO. “So much in healthcare is tied to financials,” he says. “If you don’t understand it, you can’t come up with and execute solutions. I am able to make quick and efficient decisions.”
In addition, Mr. Freudenberger’s experience as a COO has helped him see that “it’s more than dollars and cents that drive a hospital,” he says. “It helped me to see the physician view of operations.”
Pride in your work
Most of all, Mr. Freudenberger says that he tries to enable his employees to feel proud to be a member of the OakBend family. “I brag about OakBend all the time to them,” he says. “But I also look for opportunities to say, ‘You’re doing a great job!'”
By using creative and unique approaches to problem solving, being visible in the hospital and making staff enthusiastic about being a part of the hospital, Mr. Freudenberger has been able to bring success to OakBend.
As one colleague says, “Joe’s leadership, experience and commitment have helped our hospital grow and succeed.”
Learn more about OakBend Medical Center.
Learn more about The Hospital Review’s CEO of the Year award and the winners.
