Tenet Healthcare Corp. CEO Trevor Fetter has resigned amid the company's financial troubles and planned reorganization, the health system announced late Monday. Executive Chairman Ronald Rittenmeyer will fill in while the company continues its search for a permanent CEO.
Fetter announced in late August that he would step down in March or when a successor was appointed and that the investor-owned chain would shake up its board.
"I want to sincerely thank Trevor for his leadership of the company over the past 14 years, and particularly for his support in making this transition a success," Rittenmeyer said in a release.
"I have confidence in Ron's leadership and Tenet's management team, so now is the right time for me to step down as CEO," Fetter said in a release. "I am grateful for the hard work and dedication of all of Tenet's employees in building this great company, and it has been an honor to work alongside them."
Tenet announced earlier this month that it is eliminating its regional management layer in a restructuring effort aimed at creating a more agile organization.
As the company endures softening hospital admissions, rising deductibles and other headwinds that have compressed operating margins across the industry, Tenet looks to reduce some of the bureaucracy to try to streamline operations and cut costs, executives said.
Tenet is the nation's third-largest investor-owned hospital chain with 77 hospitals. The company is already shedding low-margin hospitals to reduce debt and focus on healthier operations. Investors have debated breaking up Tenet's three main business lines or leaving the company whole.
The company reported a $56 million operating loss in its second quarter amid a 1.4% admissions decline. Tenet's free cash flow turned negative over each of the past two quarters.
Fetter came under pressure when activist hedge fund Glenview Capital Management resigned its two board seats in August and looked to push change from the outside.
