Sparks interim CEO out, reportedly after offensive remark

Sparks Health System, Fort Smith, Ark., and its Franklin, Tenn.-based parent Community Health Systems last week dismissed Tim Schmidt as interim CEO of Sparks Health System and Summit Medical Center, Van Buren, Ark. Schmidt's removal came after reports surfaced that he allegedly made an offensive comment about Latinos at an employee meeting.

Schmidt was asked during a question-and-answer session why he wanted to move the company from Laredo, Texas, to Fort Smith, according to an article in The City Wire, a news website that covers Fort Smith and the surrounding region.

“Have you ever been to Laredo, Texas? It's 97% Hispanic,” the news site reported Schmidt saying.

In the wake of the remark, Sparks issued a statement saying that it “continues its search for a new CEO after the interim candidate for the position was taken out of consideration.” The system did not comment directly on Schmidt's departure in its prepared statement.

Schmidt, an executive with more than two decades of hospital administrative experience, was named interim CEO in March of this year after CEO Charles Stewart resigned.

Stewart only served in the CEO position at Sparks for six months after taking over from Gary Blan, CEO from March to September 2013. Blan was named CEO following former CEO Melody Trimble's departure in January 2013 when she was promoted to president of Health Management Associates' Southern and Western group.

In January, Community Health Systems acquired Health Management Associates, Sparks Health System and Summit Medical Center.

Follow Rachel Landen on Twitter: @MHrlanden