Healthcare Business News

KentuckyOne follows layoffs with leadership changes

By Rachel Landen
Posted: March 13, 2014 - 3:00 pm ET

KentuckyOne Health announced several senior leadership changes following a major round of layoffs intended to address its $218 million budget deficit.

The system named Joe Gilene president of Jewish Hospital in Louisville, effective April 1. Gilene had been serving as president of the system's St. Joseph Hospital in Lexington, Ky., since last October. As Gilene moves into his new role, John Smithhisler will continue as market leader for central and eastern Kentucky and will resume serving as president of St. Joseph, a role he held before Gilene came to KentuckyOne.

Other changes include announcements that Rob Murphy, director of operations at Medical Center Jewish South and Medical Center Jewish Southwest, will become administrator of Jewish Hospital Shelbyville, effective May 1, as Michael Collins retires as president. Sherri Craig, vice president of advocacy and public policy and of Jewish Hospital and St. Mary's Foundation, now leads the St. Joseph Foundation after Barry Stumbo's departure.

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Late last month, President and CEO Ruth Brinkley announced that the system was laying off approximately 500 employees and eliminating another 200 vacant positions. Employees whose positions were eliminated will receive priority consideration if they apply for open positions within the Louisville-based system, Brinkley told employees in a video posted to YouTube.

“While these changes provide cost reduction opportunities, they have the added advantage of creating professional advancement opportunities for our strong leaders within KentuckyOne,” Brinkley said in a statement posted to the system's employee website.

Though Brinkley called the changes “the end of this phase of workforce reductions,” she acknowledged that the system would need to be mindful of managing staffing, along with patient needs and inpatient volumes. “We will have to fluctuate as need calls for it,” Brinkley said.

KentuckyOne, which is primarily owned by Denver-based Catholic Health Initiatives, was created in 2012 when Louisville's Jewish Hospital and St. Mary's HealthCare merged with Lexington's St. Joseph Health System.

Follow Rachel Landen on Twitter: @MHrlanden

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