Jonathan Grimes said last week that he will resign as both chief executive officer of Straub Clinic and Hospital in Honolulu and vice president-operations of PhyCor's Hawaii subsidiary, effective July 31.
Grimes said that as a consultant he'll be better able to oversee negotiations between Straub's doctors and PhyCor, the ailing Nashville-based physician practice management company that bought out the physician-owners of 139-bed Straub in 1997. Straub's nearly 200 doctors are in talks to reacquire the hospital's assets from PhyCor.
Standard & Poor's has downgraded its corporate credit and bank loan ratings on PhyCor to B with a negative outlook from BB. S&P cited PhyCor's operating and business challenges, including divestments and declining profitability in its independent practice association business.