The executive ranks of Sacramento, Calif.-based Sutter Health have been shaken up with the recent departures of three hospital chiefs.
In the latest resignation, Albert Greene left his position as chief executive officer of Sutter's East Bay operations and head of its 453-bed Alta Bates Medical Center-Ashby Campus in Berkeley on March 2. On Feb. 26, Ted Schreck resigned as CEO and president of 258-bed Eden Medical Center in Castro Valley, and on Feb. 18 Paul Hensler resigned as CEO of 54-bed Sutter Lakeside Hospital in Lakeport.
The three hospitals represent about 20% of the beds in the Sutter system and one-seventh of its total acute and specialty hospitals.
In statements released by their hospitals, Greene said he was leaving to pursue new challenges, and Schreck said he wanted to avoid the appearance of a conflict of interest. He had been CEO of Eden Medical and chief negotiator in 1997 when the Eden Township Hospital District crafted a lease with Sutter.
Hensler said he left Sutter to become CEO of Thornton Hospital in San Diego, an affiliate of the University of California at San Diego.
Their resignations come on top of another significant departure from Sutter's executive ranks. Late last year, Robert Edmondson resigned as CEO of Omni Healthcare, Sutter's 100,000-enrollee HMO, to take a job with Aetna/U.S. Healthcare.
Industry observers said it's unusual for so many resignations to take place so quickly at such high levels within one system.
A Sutter spokesman said the number and timing of the departures is coincidental and any further conclusions are ridiculous.
According to its most recent annual reports, Sutter has been posting razor-thin profits, earning $24,000 on revenues of $2.5 billion in 1996 and $22,000 on revenues of $2.2 billion in 1995. The system said 1997 financials were not available.
Omni earned $1.3 million on revenues of $157.6 million in 1996, according to the MODERN HEALTHCARE*1997 survey of provider-owned HMOs.