Parkland to replace Anderson as CEO

(Story updated at 3 p.m. ET.)

Parkland Health & Hospital System, which had been facing the loss of its Medicare eligibility, said that CEO Dr. Ron Anderson will be reassigned to a new position at the Dallas-based hospital.

The hospital's board made the decision at a Tuesday meeting, according to system spokeswoman April Foran. She said the board plans to hire a consultant who will help "determine (Anderson's) new leadership position" at the 672-bed hospital.

"With Dr. Anderson's five-year contract expiring at the end of this year, it is the goal of the Parkland Board of Managers to find the best way to continue capitalizing on his tremendous skills and his passion for Parkland and its patients," said Dr. Lauren McDonald, chair of the Parkland Board of Managers, in an e-mailed statement. "… What the board must identify, specifically, is the nature of that continued relationship."

Anderson issued a statement to employees that was posted on Parkland's Facebook page. “I work at the board's pleasure and respect their decision,” Anderson said in the statement. “Regardless, it is imperative we remain focused on patient care and the current CMS survey… We have a strong corrective action plan in place and we must continue to demonstrate our ability to provide high quality care despite the ever increasing demands and challenges placed on us.”

Anderson, who also serves as Parkland's president, was named CEO in 1982. He previously served on the National Health Policy Initiative and is a member of the Kaiser Commission on Medicaid and the Uninsured. In 2005, he was voted No. 1 on Modern Physician's ranking of the most powerful physician executives and No. 17 on Modern Healthcare's Most Powerful People in Healthcare list.

Parkland submitted a corrective action plan to the CMS earlier this month after the agency had reported "immediate and serious" threats to patient health and safety at the hospital.