Tony Tedeschi, CEO of Detroit Medical Center, has announced his retirement as CEO of the seven-hospital, investor-owned health system, effective Jan. 1, when Audrey Gregory, R.N., current president of DMC's downtown adult hospitals, will replace him.
Tedeschi, who will stay on with the DMC system to help with the transition through March, has been with DMC's parent company, Dallas-based Tenet Healthcare Corp., for nearly a decade and has led DMC since 2017. He headed up Tenet's Chicago market before coming to Detroit.
"Tony is a thoughtful leader who made caring for the Detroit community his passion," Dr. Saum Sutaria, Tenet's president and COO, said in a statement. "He has demonstrated an unwavering commitment to our patients and their families and has been instrumental in creating a culture of compassion, safety and quality that our staff and patients expect and deserve. He will be missed, and we wish him all the best in his retirement."
Tedeschi said in a statement that enjoyed working in Detroit. "The DMC is an extraordinary place. At the heart of the DMC are the staff and physicians who work hard every day to make a difference in the lives of the patients we have the privilege to serve," he said.
Gregory, who joined the DMC in October, came to the DMC from St. Francis Healthcare System in Memphis, Tenn., where she served as Tenet's market CEO, and CEO of St. Francis Hospital-Memphis. She has worked for Tenet for the past 15 years in various roles, including chief nursing officer and COO.
"Her knowledge makes her the perfect choice to lead the DMC and build upon the legacy created by Dr. Tedeschi and the DMC leadership team," Sutaria said.
Tedeschi and Gregory were unavailable for interviews.
A DMC source told Crain's that Tedeschi wanted to spend more time with his family.
Tedeschi has faced challenges at DMC. Two sources familiar with the matter said Tenet has been disappointed the past 18 months in DMC because it has been under budget. It also has faced accreditation problems with cardiology and neurosurgery residency programs and quality citations from the Centers for Medicare and Medicaid Services.
While Medicare cost reports show DMC hospitals have earned annual profits of $50 million to $100 million since parent company Tenet acquired DMC in 2014, Tenet has been struggling the past several years and has instituted cost-cutting efforts and layoffs at its hospitals. In fiscal 2018, Tenet reported net income of $108 million compared to a $704 million net loss in 2017.
In a statement to employees, Tedeschi expressed thanks over the past two years.
"I have thoroughly enjoyed working with each of you; your dedication to the DMC and patients is inspiring," Tedeschi wrote. "I am very proud of the accomplishments we have achieved over the past three years. Our hospitals play an incredibly important role in our patients lives and our community. ... Thank you for everything you do I leave confident knowing DMC has an extremely bright future."
This article was originally published in Crain's Detroit Business.