The following memorandum was sent by e-mail on August 12 to the Administrative Forum of the Penn Health System--a 650-member body made up of all system leadership including the School of Medicine, the four owned hospitals, and the primary care network. It is one of a series of communications in which Dean Kelley and Dr. Martin are using e-mail to keep management and staff abreast of changes in the system.--Ed.

Penn Health System:
The Hunter Group and the Turnaround Project

This is the first in a series of periodic e-mails that will give you an update on our financial-turnaround project, including the activities of the Hunter Group. Please share this information with your staff.

As you know, UPHS is experiencing significant financial losses, as are teaching hospitals and academic health systems nationwide. Three major causes are contributing to this situation: the Balanced Budget Act; reduced and/or delayed payments from payors; and state cuts that have increased the amount of charity care we provide (which at HUP was already the highest in the commonwealth.) We hired the Hunter Group as a proactive step to ensure our success in this very volatile health care market.

The Hunter Group's role is to make recommendations to us for improving our financial performance. Team members began their work at UPHS late last month. Through September, the Hunter Group will be reviewing data and conducting interviews to develop an assessment of UPHS's current condition.

UPHS has formed a Steering Committee, a Management Work Group, and a Physician Advisory Work Group to guide the Hunter team's work. They will have their first meetings later this month. The UPHS groups will work with the Hunter team to gather consensus on the state of our organization. The membership lists of all three UPHS groups are listed below.

In addition, Kathleen Tregear, M.S.N., M.B.A., associate vice president of hospital and network operations, is serving as staff liaison to each of these groups. If you have any questions about the process, please feel free to call Kathy at (215) 614-0296, or page her at (215) 404-7842.

The Hunter Group is expected to begin offering recommendations to the Steering Committee in October. The Steering Committee will decide which actions to take, and will develop an implementation time frame with measurable outcomes.

To keep UPHS staff informed about the project, Tom Beeman and Robert Martin will meet with staff at the UPHS-owned entities in August and September. Please encourage your staff and colleagues to bring up any questions, suggestions, and concerns at these forums.

We recognize that this is an anxious time for everyone at UPHS. Nonetheless, our patients and our everyday work demand our continued attention and dedication to excellence. We will rely upon you to stay focused on the job at hand by:

  • managing within your FY 2000 budget;
  • concentrating on providing excellent care and service;
  • remaining committed to the organization.

In return, you have our commitment to:

  • keep you informed;
  • be objective in the decision-making process;
  • do what's best for the organization, consistent with our Mission and Core Values.

Thank you again for your support.

--William N. Kelley, CEO, Penn Medical Center; Dean, School of Medicine

--Robert Martin, Interim Chief Operating Officer

[Additional names appended--those of the Hunter Group and of the three key committees formed in conjunction with their work--are listed below]


The Hunter Group

  • George P. Caralis (Senior Associate)
  • Hirsh J. Cohen (Senior V.P. and Principal)
  • Tom Croswell (Contractor-KeyPlan)
  • Kenneth L. Fisher (Senior V.P.)
  • Gerald P. Herman, M.D. (Physician Associate)
  • David P. Hunter (Chief Executive Officer)
  • Linda S. Kenwood (Senior Associate)
  • Robert M. Lovell (Senior Associate)
  • MarieAnn North (Senior V.P.)
  • Daniel L. Stickler (Senior V.P.; Engagement Director)
  • Peter M. Synowiez (Senior Vice President)
  • Richard Vernick, M.D., FACC (Senior V.P. and Principal)


Steering Committee

  • Dwight L. Evans, M.D. (Professor/Chair, Psychiatry)
  • John A. Fry (EVP, University of Pennsylvania)
  • William N. Kelley, M.D. (CEO, UPHS; Dean of Medicine; EVP of University)
  • David E. Longnecker, M.D. (Professor/Chair, Anesthesia; Vice Dean for Professional Services)
  • Robert D. Martin, Ph.D. (Interim Chief Operating Officer)
  • Russell E. Palmer (Chairman, UPHS Trustee Board)
  • Myles H. Tanenbaum, Esq. (UPHS Trustee Board Executive Committee; Chairman, HUP Board; Chairman, PMC Board)
  • Peter G. Traber, M.D. (Professor/Chair, Medicine)
  • Harry Wallaesa (UPHS Trustee Board Executive Committee)
  • Richard B. Worley (UPHS Trustee Board Executive Committee)


Physician Advisory Work Group

  • Thomas J. Bader, M.D. (Medical Director, General Obstetrics & Gynecology)
  • Ronald B. Barg, M.D. (Internal Medicine, Bala Cynwyd Medical Associates, CCA)
  • Marjorie A. Bowman, M.D., M.P.A. (Chair, Family Practice & Community Medicine)
  • R. Michael Buckley, Jr., M.D. (Chair, Med/PAH)
  • Jack Ende, M.D. (Chair, Medicine/PMC)
  • Stanley Goldfarb, M.D. (Senior Vice Chair for Clinical Affairs, Medicine)
  • Howard I. Hurtig, M.D. (Interim Chair, Neurology)
  • Larry R. Kaiser, M.D. (Professor, Surgery)
  • Evan Loh, M.D. (Medical Director, Heart Failure & Cardiac Transplant)
  • Peter D. Quinn, D.M.D., M.D. (Chair, Oral & Maxillofacial Surgery; Chairman, HUP Medical Board)
  • Paul H. Rogers, M.D. (Internal Medicine/Cardiology, PMA Medical Specialists, CCA)
  • C. William Schwab, M.D. (Chief, Traumatology & Surgical Critical Care)
  • Mark L. Tykocinski, M.D. (Chair, Pathology & Laboratory Medicine)
  • Alan J. Wein, M.D. (Chief, Division of Urology)


Management Work Group

  • Thomas E. Beeman (Senior Vice President, Hospital Operations)
  • Peter L. DeAngelis, Jr. (Interim Chief Financial Officer)
  • Leslie A. Dengler (Executive Director, Penn Medicine at Radnor)
  • Joan M. Doyle, MSN, MBA (Executive Director, Homecare and Hospice Service Programs)
  • I. William Ferniany, Ph.D. (Senior Vice President, Professional Services)
  • Elizabeth B. Johnston (Associate Vice President, Physician Recruitment and Retention)
  • G. Ward Keever (Chief Information Officer)
  • Gavin R. Kerr (Vice President, Human Resources & Strategic Planning)
  • Kevin B. Mahoney (Executive Director, Clinical Care Associates)
  • Maureen P. McCausland, DNSc (Chief Nursing Executive)
  • Timothy O. Morgan (Executive Director, Pennsylvania Hospital)
  • Garry L. Scheib (Interim Hospital Executive Director, HUP)
  • Richard E. Seagrave (Executive Director and COO, Phoenixville Hospital)
  • Thomas M. Tammany, Esq. (Associate VP & Deputy General Counsel)
  • Richard L. Tannen, M.D. (Senior Vice Dean)
  • Michele M. Volpe (Hospital Executive Director, Presbyterian Medical Center)

Almanac, Vol. 46, No. 2, September 7, 1999