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September 2007
 Health Corps
 35 Hospital Leaders who make things tick
 By Drew Ruble

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 Authoritywhich 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 marketkeeping 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.
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Bill Evans
St. Jude Children's Research Hospital
Memphis
CEO
Runs one of nation's most recognized
and lauded institutionsthe 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."
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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.
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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.
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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.
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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.
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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.
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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'sunder London's leadershipis 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 bedsthe 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.
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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 revenuesthe 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.
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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.
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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.
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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.
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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.
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