BusinessTN

According to the Tennessee Hospital Association (THA), hospitals in the Volunteer State employ 102,000 people, generate $11.8 billion in income, and are responsible for managing around three million emergency room visits and 80,000 births each year. Toss in the estimated $1.4 billion in charity and uncompensated care costs and it is clear that hospitals are a key economic and social driver in Tennessee.

The leaders of those hospitals and hospital systems are part business executive, part community leader and, from some perspectives, part healer. They may not hold the scalpel, but they manage the facilities, programs and personnel that are in the business of saving and improving lives. And they do so balancing complex financial hardships with ever-changing health care policy and regulations, all the while keeping an eye on the medical ethics involved.

For BusinessTN's 2007 health care report, we name the top 35 hospital "leaders" from across Tennessee. The list is the result of peer review, independent hospital rating studies and feedback from physicians and other knowledgeable sources across the state.

Represented here are the leaders of multi-facility health systems alongside some of the operational administrators working under their auspices, oftentimes at small but crucial rural hospitals. (Leaders of large, multi-state hospital operators based in Tennessee are left out here in favor of in-state subordinates overseeing in-state operations.) Also represented here are CEOs of independent systems and facilities. The end product? Whether for-profit or not-for-profit, rural or urban, big or small, publicly, privately or community-owned, all manner of hospitals and their leadership teams comprise the list of 35. Taken together, the group reflects the diversity of the executive talent driving both wellness and economic activity across Tennessee.

• Jim Brexler
  Erlanger Health System
  Chattanooga
  President & CEO
  Hired to lead nonprofit, five-campus, 818-bed hospital system affiliated with the University of Tennessee College of Medicine in 2004 following a nationwide search by the Chattanooga-Hamilton County Hospital Authority Board of Trustees. Formerly vice chancellor of the Louisiana State University Health Sciences Center, where he was CEO of Louisiana's statewide public hospital system (comprised of nine hospitals). At the helm of Erlanger in the aftermath of a $40 million settlement with the U.S. Department of Justice resolving allegations that, prior to Brexler's arrival, the hospital paid remuneration to induce physicians to refer patients to its facilities.
• Ruth Brinkley
  Memorial Health Care System
  Chattanooga
  President & CEO
  A Colorado-based Catholic Health Initiatives affiliate, 422-bed MHCS has annual revenues of $400 million and 3,500 employees. A former CHI executive who came to Memorial as an interim leader in 2002, Brinkley has become a staple of the Chattanooga business community, serving on the boards of the Chattanooga Chamber, SunTrust and Chattem Inc. The registered nurse was recently named the Chamber's 2007 Chattanooga Area Manager of the Year. Spearheading a $320 million renovation and expansion project in the city, which will create 700 new jobs.
• Charlotte Burns
  Hardin Medical Center
  Savannah
  CEO
  Since 1994, has run the county-owned, 420-employee Hardin Medical Center, which includes a 58-bed hospital, 73-bed nursing home, home health agency, medical supply and sales unit and the county's franchised ambulance service. Now working to raise funds for an outpatient chemotherapy clinic, an initiative pushed by country music star Darryl Worley. Burns' hospital may in a year provide health care to as many people as a giant like Vanderbilt employs. However, the service to Savannah and the surrounding community is not to be understated. Recent partnership serving as a beta site for nationally known Studer Group has led to superior patient satisfaction (and won her awards alongside stalwarts like Vanderbilt). Former nurse turned outspoken advocate for legislative change aimed at enhancing health care.
• Reginald W. Coopwood
  Nashville General Hospital
  Nashville
  CEO Former chief medical officer at Metro Nashville's only taxpayer-subsidized public hospital named CEO of the Metro Hospital Authority—which includes 127-bed Nashville General Hospital at Meharry, Bordeaux Long Term Care and Knowles Assisted Living in 2005. Working effectively to reduce dependence on state and local subsidies. June 2007 figures revealed patient revenues up nearly $13 million from the previous year. Restructuring plan announced in 2006 also intended to improve bottom line performance. Nearly three of four Nashville General patients are uninsured or underinsured.
• Joe Dawson
  Blount Memorial Hospital
  Maryville
  CEO
  Has led 14-facility, 334-bed Blount Memorial operation through an era of tremendous expansion in facilities, workforce and technologies in a service area growing by leaps and bounds. Dawson has had good success retaining that business in his home market—keeping it from going to nearby Knoxville, where every major hospital has made a run at taking over his hospital. As an independent, solo provider, Dawson must be a jack-of-all-trades in dealing with issues that arise, selectively marshalling his resources. Named American Hospital Association's 2006 Grassroots Champion for Tennessee for his work educating elected leaders on the realities faced by hospital providers.

• Bill Evans
  St. Jude Children's Research Hospital
  Memphis
  CEO
  Runs one of nation's most recognized and lauded institutions—the world's largest cancer center devoted solely to children, with programs in more than 20 countries, and a daily operating budget of over $1.2 million. Leads over 3,300 employees working to find cures for catastrophic diseases in children. Ranked #1 among U.S. medical institutions in the 2006 Scientist magazine poll of "Best Places to Work in Academia."
• Thomas L. Herron
  Centennial Medical Center
  Nashville
  CEO
  Runs flagship hospital not only for Nashville-area TriStar Health System but for parent HCA, the national health care system whose headquarters are located within walking distance. Herron, the former 10-year CEO at Largo Medical Center in Florida, was named to lead 688-bed Centennial in 2006 and is presumably now in line to eventually lead the entire TriStar system. (Herron replaced Larry Kloess, who ascended to that position.) Credited with making significant improvements at Centennial.
• Lisa Heaton
  Johnson County Community Hospital
  Mountain City
  Administrator & Chief Nursing Officer
  Runs for Mountain States Health Alliance what Modern Healthcare magazine described as "the little hospital that could" after Heaton garnered Medicare Critical Access Hospital designation by adding two inpatient beds to her then outpatient facility. Move opened financial doors resulting in broader services to Heaton's isolated community on Tennessee's edge (and North Carolina's). Savvy grants procurement has led to numerous high tech touches, including the ability to have films read immediately, a process that once took over an hour by ground transport. Successfully converted a physician practice to a rural health clinic. Past president, Rural Health Association of Tennessee.
• Jim Houser
  St. Thomas Health Services
  Nashville
  President & CEO
  Leader since 2005 of four-hospital, Ascension Health-affiliated system comprised of St. Thomas and Baptist hospitals in Nashville, Middle Tennessee Medical Center in Murfreesboro and Hickman Community Hospital in Centerville (over 1,000 beds total). Well regarded for job he's done training up executive talent beneath him and also for forging new alliances with outlying hospitals via initiatives like new chest pain centers in Winchester, Livingston, Crossville, Franklin and Paris (with more coming online). Long recognized nationally for its large and successful cardiac program, St. Thomas in April performed its 300th heart transplant.
• Harry R. Jacobson
  Vanderbilt University Medical Center
  Nashville
  Vice Chancellor for Health Affairs
  In role as vice chancellor, serves as CEO of 803-bed, not-for-profit VUMC, which includes the schools of medicine and nursing, four hospitals, and a large faculty group practice. Annual budget is approximately $2.2 billion. As senior medical administrator, Jacobson is focused on health care improvement, namely through the use of information technology. VUMC is routinely recognized as a top major teaching hospital in the United States. Jacobson is also one of Nashville's most successful health care entrepreneurs, most notably as co-founder of Renal Care, which was acquired last year for $4.2 billion.

• Larry Kloess
  TriStar Health System
  Nashville
  President
  Since 2005, oversees operations of 10 hospitals in Nashville and the surrounding communities as leader of HCA's hometown market. Formerly helmed flagship hospital for HCA, Centennial Medical Center in Nashville. Pipeline from Centennial to head of TriStar historically leads to leadership of a division of HCA followed by leadership of one of the company's national operating groups. Heading up TriStar's entry into fast-growing Spring Hill community in Maury County via the construction of a $112 million, 56-bed hospital.
• Joe Landsman Jr.
  University of Tennessee Medical Center
  Knoxville
  President & CEO
  Runs since 2004 the 439-bed hospital on behalf of private, not-for-profit University Health System. Joined UHS as Senior VP and CFO in 1999 and was instrumental in all financial aspects of the restructuring efforts that transferred ownership and governance of UT Medical Center from the University of Tennessee that year. Named executive VP in 2003. The Center, which serves as a referral center for eastern Tennessee, southeastern Kentucky and western North Carolina, recently began $60 million expansion and renovation project at training hospital to better serve area's population growth and aging trends in retirement-friendly East Tennessee.
• Jason Little
  Baptist Memorial Hospital-Memphis
  Memphis
  CEO
  Leads the 706-bed flagship hospital for the Baptist Memorial Health Care system, one of Tennessee's highest volume hospitals. Former head of Baptist's Columbus, Miss., facility who oversaw much of that facility's recent $34 million renovation/expansion project. Also served as chief administrator at Baptist's Collierville facility. Former student body president at UT-Knoxville. A rising star in health care administration who many in the industry see as a potential major local, state and national player in health care.
• Debra London
  St. Mary's Health System
  Knoxville
  President & CEO
  Even as competitors struggle, St. Mary's—under London's leadership—is booming. An anomaly as a female head of a multi-hospital system comprised of St. Mary's Medical Center in Knoxville (the flagship currently undergoing a $100 million renovation), St. Mary's Medical Center of Campbell County, St. Mary's Jefferson Memorial Hospital, St. Mary's Holston Health and Rehabilitation Center and a new north Knox County hospital that opened last month. Moving her hospital forward while maintaining its mission (and navigating both a high charity load and the nuns she works for). Insiders predict parent group Catholic Healthcare Partners has big national plans for London. A recent economic impact study revealed St. Mary's contributes nearly half a billion dollars annually to the greater Knoxville region, including more than 5,000 jobs in the region.
• Bernie Mattingly
  Cookeville Regional Medical Center
  Cookeville
  CEO Former COO of CRMC
  now leading the 247-bed regional referral center for the Cumberland area that has been an acquisition target of for-profit chains and not-for-profit health systems in nearby Nashville for many years. Under Mattingly, CRMC has not only stayed independent but has been rated in the top percentiles of hospitals nationally for spinal surgery, as well as for gastrointestinal and vascular services. Physical expansion in recent years includes a new six-story patient tower and expanded cancer center and ICU.

• Jim McMackin
  Cumberland Medical Center
  Crossville
  President & CEO
  Has lead private, not-for-profit, 182-bed regional medical center since 2001. The hospital has experienced significant expansion under his leadership that has brought quality health care closer to Crossville. Another solo hospital leader who has fewer resources than the big boys and still does quite well. A nationally recognized voice as past chairman of the American Hospital Association's section for small or rural hospitals.
• John Melton
  Johnson City Medical Center
  Johnson City
  CEO
  Heads Washington County Operations of Mountain States Health Alliance system, which includes 433-bed not-for-profit Johnson City Medical Center, Quillen Rehabilitation Hospital, North Side Hospital, Johnson City Specialty Hospital and Woodridge Psychiatric Hospital. Also serves as senior VP for 11-hospital MSHA. Joined the Alliance in 2001 following stints as CEO of two different hospitals in Montgomery, Ala.
• Dennis Miller
  Williamson Medical Center
  Franklin
  CEO & Executive VP
  Led WMC through a major $83 million expansion and construction project aimed at providing better local care and keeping Williamson County residents from going to Nashville hospitals for services including obstetrics/neonatal intensive care. Located in the state's richest county and serving a wealthy and well-insured clientele, the unaffiliated 185-bed WMC has long been an acquisition target of powerhouses like nearby Vanderbilt and HCA. Miller, an HCA alum tabbed in 2002 to run WMC following a stint with Birmingham, Ala.-based Eastern Health System, has used those very demographic positives to maintain the hospital's independent status, consistently turning a profit and even threatening the market share of his would-be acquirers.
• Jerry Miller
  Holston Medical Group
  Kingsport
  Founder & CEO
  Founded (1977) and runs largest independent multi-specialty group practice in Tri-Cities area of Northeast Tennessee and Southwest Virginia. Operates 26 offices (over 100 physicians), including surgery center, two diagnostic centers and two rehab centers. HMG is recognized nationally for its use of technology for disease management, clinical research, compliance, quality management, and wellness initiatives with major local employers. Miller is one of the most influential businessmen in the Tri-Cities.
• Michael L. Mullins
  Gateway Health System
  Clarksville
  President & CEO
  Tabbed in 2006 as head of GHS, which includes Gateway Medical Center (the former Memorial Hospital). Had been overseeing construction of a 270-bed replacement facility slated to open in July 2008 in the 17th fastest growing city in the United States. But Mullins, a 22-year reservist in the U.S. Navy, is a leader in another way. He was recently recalled to active duty in Iraq and isn't expected to return to Gateway until next Spring. Gateway has been part of the Texas-based Triad hospital chain that at press time was in the process of being acquired by Tennessee-based Community Health Systems.

• Robert Otwell
  Maury Regional Healthcare System
  Columbia
  CEO
  Has led 275-bed, 2,000-employee, not-for-profit Maury Regional Hospital since 2005. Previously headed the largest non-urban hospital in America, North Mississippi Medical Center, with 650 beds and 3,800 employees. Maury Regional, a county-operated hospital, is currently expanding via a $10.5 million, 30,000-square-foot emergency department project. Maury Regional Healthcare System serves around 250,000 residents and includes hospitals and clinics reaching to the Alabama border, including Marshall Medical Center in Lewisburg and other facilities in Spring Hill, Hohenwald and Waynesboro.
• Richard H. Parks
  West Tennessee Healthcare
  Jackson
  President & CEO
  Newly named head of the public, not-for-profit Jackson-Madison County General Hospital, replacing a legend in Jim Moss, the man who led the six-hospital organization to record revenues. Moss is also credited with making business difficult for competitive for-profit interests in Jackson by convincing health insurers to ink exclusive deals with his hospital. Parks inherits a top regional employer (5,000 employees with locations in 18 West Tennessee counties) as well as a flagship location in Jackson that has been in the midst of a $90 million renovation and expansion project. He previously led Cape Fear Valley Health System, a not-for-profit totaling 616 beds—the ninth largest system in North Carolina.
• Steve Patonai
  SkyRidge Medical Center
  Cleveland
  CEO
  Arrived in 2006 and has overseen the merger of county-owned Bradley Memorial Hospital and Cleveland Community Hospital, crafting a comprehensive health system out of two former competitors. The facilities, now owned by Community Health Systems, have consolidated services and operate as a single system with two campuses. Also oversaw a rebranding effort, the combination of the two hospitals' medical staffs and their governing bodies. In 2006, 351-bed SkyRidge recruited nine physicians to the community, admissions increased 13% and surgeries 7%. Patonai is now overseeing plans for a $45 million expansion project.
• Tim Puthoff
  Regional Hospital of Jackson
  Jackson
  CEO
  Has achieved significant growth in one of the state's most competitive markets operating in the shadow of a competitor more than three times his size. Puthoff has achieved double-digit volume and revenue growth during the past two years at the 179-bed Community Health Systems owned hospital. Since his arrival in 2003 from Hartselle Medical Center in Alabama, Puthoff has grown the medical staff at Regional by nearly 30%. Now overseeing plans for a multi-million dollar expansion aimed at enhancing services for outpatient procedures and creating additional capacity for labor and delivery.
• Steve Reynolds
  Baptist Memorial Healthcare Corp.
  Memphis
  President & CEO
  Leader since 1994 of what has become one of the largest not-for-profit health care systems in the United States with 14 hospitals located throughout the Mid-South (including nine in Tennessee). Oversees 13,000 employees. The total Memphis community benefit of BMHCC exceeds $300 million annually, much of it in charity and uncompensated care.

• Richard Salluzzo
  Wellmont Health System
  Kingsport
  President & CEO
  Named to lead growing Wellmont, which serves Northeast Tennessee, Southwest Virginia and Southeast Kentucky in 2004 after doubling revenue and returning Conemaugh Health System in Johnstown, Penn., to profitability. According to Modern Healthcare magazine, Wellmont went from an operating loss of $10.8 million on $436.5 million in net patient service revenue in fiscal 2004 to an operating profit of $15 million on net patient service revenue of $547.9 million in fiscal 2006. And once pending deals are completed, Wellmont will have grown from four hospitals in two states in 2004 to 11 hospitals in three states (over 1,300 beds and 5,000 employees). One of the few medical doctors heading up a major health system. Arguably America's premiere advocate for patient safety in hospitals and efforts to reduce medical error. (See related cover story.)
• Cecelia W. Sawyer
  Methodist University Hospital
  Memphis
  Administrator/CEO
  Started career at Methodist in 1974 as a registered nurse. Worked her way through the ranks to now lead the flagship of the Methodist Healthcare system, a 693-bed facility affiliated with the University of Tennessee Health Science Center. Stops along the way included VP for clinical services at Methodist University Hospital, CEO at Methodist Hospital South and COO at Le Bonheur Children's Medical Center.
• Gary Shorb
  Methodist Le Bonheur Healthcare
  Memphis
  President & CEO
  Operates six adult hospitals and a Children's Medical Center with over $1 billion in net revenue (America's third largest health care system). In all, Methodist employs over 10,000 Memphians, making it the city's second largest employer. Named CEO in 2001. Joined Methodist in 1990 as executive vice president. Prior to his health care career, Shorb was a project engineer with Exxon and a lieutenant commander in the U.S. Navy.
• Anthony Spezia Jr.
  Covenant Health
  Knoxville
  President & CEO
  Runs six-hospital, 1,300-bed not-for-profit health system with over 8,500 employees and $1.5 billion in revenues—the largest private employer in the Knoxville area. Former Covenant COO named CEO in 2000. Company has undergone remarkable growth in recent years under his leadership, with expansions at numerous Covenant properties. At press time, was working to acquire city-owned Roane Medical Center in Harriman.
• William T. Sugg
  Sumner Regional Health Systems
  Gallatin
  President & CEO
  Since 1989, chief administrator at Sumner Regional Medical Center, which he skillfully converted from a government-owned facility to a 501(c)3. Assumed current position upon the formation of Sumner Regional Health Systems in 1994. The Confederate war memorabilia buff who drives a Tennessee orange pick-up truck leads a four-hospital nonprofit regional health care system now stretching from Gallatin to Hartsville to Carthage, where it has two facilities. 130-bed Sumner Regional Medical Center, the Gallatin-based flagship, which has long been an acquisition target of larger health care systems in the Nashville area, recently broke ground on a $56 million addition and renovation. Sugg has fended off all advances on his independent empire and built a formidable rural hospital acquirer of his own.

• Dennis Vonderfecht
  Mountain States Health Alliance
  Johnson City
  President & CEO
  Since becoming MSHA's leader in 1990, has grown the system from one community hospital to an 11-hospital powerhouse serving Northeast Tennessee, Southwest Virginia and western North Carolina. System formed in 1998 when Johnson City Medical Center purchased six hospitals from the then Columbia/HCA Healthcare Corp. Gross revenues now exceed $2 billion and employees number 6,500. Hospitals under his guidance range from 433-bed Johnson City Medical Center to six-bed Johnson County Community Hospital in Mountain City (a facility run by administrator Lisa Heaton that is equipped for electronic medical records and sports a heli-pad). Recently started construction on a new children's hospital in Johnson City.
• Carlyle Walton
  Takoma Regional Hospital
  Greeneville
  President & CEO
  British Guyana, South America, native who has led Adventist Health system-affiliated Takoma since 1998. The 108-bed charity hospital, whose financial challenges are steep as it works to serve some of the poorest citizens of Greene County and the surrounding area, recently reached an agreement to share ownership with Wellmont Health System serving as majority owner, forging a new not-for-profit corporation. Enhancements at Takoma that have taken place under Walton include advances in medical equipment technology, significant growth in cardiology services and increased availability of physician specialists.
• Chuck Whitfield
  Laughlin Memorial Hospital
  Greeneville
  President & CEO
  Runs independent not-for-profit hospital that in recent years has undergone multi-million dollar construction projects resulting in, among other things, Greeneville's first cardiac catherization lab and a third medical office building. (Over $8 million in new equipment was also installed.) Whitfield and Laughlin were also key to the development of the new College of Pharmacy at East Tennessee State University in nearby Johnson City, pledging $100,000 to address a regional need and ensure a local solution.
• Ellen Wilhoit
  Ft. Sanders Sevier Medical Center
  Sevierville
  President & CAO
  Named to current post at Covenant Health-owned Ft. Sanders in 1999. Formerly the not-for-profit hospital's COO and chief nurse executive. Maintains her nursing license and certification and often assists patients when making rounds. Current 79-bed hospital and 54-bed nursing home complex (500 employees, 150 affiliated physicians) serves the needs of a fast-growing population at the edge of the Great Smoky Mountains. Parent company recently broke ground on an $80 million replacement hospital, cancer center and women's center to be located at the current site and which recently received a $500,000 donation from county native Dolly Parton.
• John Workman
  Athens Regional Medical Center
  Athens
  CEO
  Named leader of ARMC in 1997. 118-bed acute care facility that serves the area of McMinn, Monroe and Meigs counties became part of Brentwood-based LifePoint Hospitals in 2001. Workman formerly worked with Erlanger Health Systems as VP for clinical services. During Workman's tenure at ARMC, the hospital has experienced significant growth in volume and services, most recently with the addition of a new office building and state-of-the-art emergency department. Meanwhile, neighboring Woods Memorial in Etowah has struggled financially for years, finally selling in May. Further evidence of Workman's effectiveness at ARMC is that when parent LifePoint was named among Woods' suitors, ARMC's medical staff bristled at the possibility of their hospital's progress being stymied by a proposed merger of the two facilities.