The top three executives of bankrupt Aliquippa (Pa.) Community Hospital resigned citing a lack of support from physicians. In a memo sent to hospital managers and obtained by Modern Healthcare's Daily Dose, President and CEO Fred Hyde said a review of September finances revealed "the dramatic impact of physician discontent on our finances." Financial recovery will be impossible if physicians don't bring patients back to the hospital, Hyde said. Accordingly, Hyde, Vice President and CFO Ted Dzura, and Vice President and COO Carol Wind submitted their resignations. Raymond Beck, former CEO of UPMC Passavant in Pittsburgh, reportedly has taken over as the hospital's CEO.
Aliquippa Community filed for Chapter 11 bankruptcy protection last month, barely 18 months after the community won the hospital back from UPMC Health System. At the time, Hyde said the voluntary filing would not disrupt operations or result in major layoffs but was in response to the hospital's inability to close a $3 million budget gap. "We have had a decent run, turning 40 days' of cash (the amount we had when UPMC turned the hospital back to the community) into 20 months or so of service," Hyde said in the memo. "With luck, the (bankruptcy) trustee will be able to work with all of the constituencies in the hospital, and begin another one of this hospital cat's nine lives." -- by Cinda Becker