Michael Young is the new chief executive officer of Philadelphia's Temple University Health System, effective Thursday.
Young will serve in the new role in addition to his current role as CEO of Temple University Hospital, which he's held since 2019. He will focus on continuing the positive momentum to solidify the health system's stability and competitiveness following a restructuring that began in 2018.
In an interview, Young said the restructuring is far down the road and that the work of Alvarez and Marshal, the consulting firm leading the health system's restructuring, will eventually come to a close.
"We've made pretty remarkable strides in clinical outcomes, cost per case and net income," he said. "So we believe their work here is critical and ongoing. But I see it winding down over the next period of time."
Young succeeds Acting CEO Stuart McLean, who will return to his role as the health system's chief restructuring officer. The restructuring process to date has included selling Temple's Fox Chase Cancer Center and its interest in Health Plan Partners to Thomas Jefferson University, transitioning Temple University's physician practice plan to a not-for-profit entity with the health system and merging Jeanes Hospital into Temple University Hospital.
"Michael Young is a highly skilled and experienced administrator who has done an outstanding job at Temple Hospital and deserves the opportunity to lead the entire health system," Temple University President Dr. Richard Englert said in a statement.
Moving forward, Young said his focus will be on identifying the health system's top performing specialties, such as pulmonology, and expanding them. He plans to improve clinical performance, which he said will free up capacity to treat more patients. That in turn will drive more revenue to spend on capital programs, another revenue driver.
"We describe it as spiraling up," he said.
But challenges persist. The closure of Philadelphia's Hahnemann University Hospital in September, has changed Temple's payer mix to more than 50% Medicaid and 90% government payer, Young said.
The health system saw its highest net income in the year ended June 30, 2019 in a decade: $49.3 million, according to Young. That was up from $29 million in the prior-year period. Temple University Health System drew $2 billion in revenue in fiscal 2019.
Young has more than 30 years of leadership experience at academic medical centers, including Pinnacle Health System, Grady Memorial Hospital and Erie County Medical Center. He arrived at Temple in 2018 as chief operating officer of Temple University Hospital.
Young is a fellow of the American College of Healthcare Executives and holds a master's degree in health administration and a bachelor's degree in biology from the University of Pittsburgh.
Temple and Thomas Jefferson announced the Fox Chase Cancer Center and health plan deal in July 2019. The cancer center's profit margin has exceeded 10% in each of the past five years, according to Modern Healthcare Metrics. In 2018, the hospital drew $38.5 million in operating profit and $374.5 million in operating revenue.