SoutheastHEALTH names new CEO

A former chief executive for a New Jersey health-care system is the new president and CEO of Southeast­HEALTH.

The system's executive team announced their choice of Kenneth W. Bateman at a Monday news conference at Southeast Hospital.

"The board felt it was important to move with deliberate speed to find the best possible person to head up our organization, and that we have done," John Thompson, chairman of the system board of directors for SoutheastHEALTH, said during the conference. The board voted unanimously to hire Bateman.

Wayne Smith, who became CEO in 2012, served in the position until his retirement in October. At that time, a search was already underway for a replacement.

Bateman, according to SoutheastHEALTH, "has an extensive record of leadership as a CEO, and proven performance in financial growth, quality and delivering timely results in renowned hospitals and health systems."

As CEO, Bateman will lead an initiative at Southeast­HEALTH that focuses on financial improvement and operational refinement. The initiative, known as APEX, identifies efficiencies to help the health system out of some financial woes it has experienced in the past few years because of revenue and billing-cycle issues and cuts in reimbursements.

SoutheastHEALTH is nearing the halfway mark in the initiative, which is split into six areas, including clinical documentation improvement, human resources, labor, nonlabor, physician solutions and revenue cycle. Up to $32 million in annual savings could be realized by the organization if the initiative is successful, executives told the Southeast Missourian in November. Another $9.5 million could be paid to SoutheastHEALTH through backlogged billing.

CEO candidates interviewed by the health care system were made well aware of its financial position.

Reports on Bateman's tenure as CEO of Somerset Medical Center in Somerville, New Jersey, until he and other executives voluntarily stepped down last spring during a merger, show he has dealt with a financially troubled organization in the past.

Somerset Medical Center, according to a report from The Star Ledger newspaper, merged with another hospital earlier this year because of financial problems stemming from "patient volume and cash flow," but was left in a good position by the executive team. It is also reported that under Bateman's leadership the health system experienced its largest expansion.

Bateman on Monday pointed to several ways for SoutheastHEALTH to overcome challenges.

"Some of the changes are that reimbursements are continually falling down," he said. "We have to get our cost structure down. As everyone knows, the cost of health care is unsustainable. So we have to figure out how to become more efficient as a hospital. Part of that is about how do you eliminate waste, how do you eliminate variation."

Bateman said he already has a plan in place to begin a new program that will reduce waste while producing better patient outcomes.

Kenneth W. Bateman

He also wants to hold "town hall" meetings for employees, he said, to hear their concerns and share about the issues at national, state and local levels that will affect them and the hospital.

"It's going to be a very informal relationship that we share with the employees," Bateman said. "One of the things I think that made me successful as a CEO was my communication style. I believe in open communication."

Bateman also said he will support a wish of the SoutheastHEALTH system to remain an independent organization, but it will require much working together. In recent months, rumors have spread throughout the community that the health system is for sale or interested in a merger. Thompson said last month there is "no ongoing, active or hint of discussion with another health-care system about a sale."

Bateman said the challenges seen at Southeast­HEALTH are not uncommon and the initiative already underway gives him a head start on solving problems. He said he also already is familiar with the outside consulting group, Huron Healthcare, which is overseeing the initiative.

SoutheastHEALTH has experienced much movement among its executives this year, including five key members leaving their positions for retirement or other reasons. Several have already been replaced, while other positions remain open and subject to being filled only at the discretion of the CEO.

"I'm going to have to take a look at those positions to see what are the needs, and to take a look at the organization's structure to see if we are structured properly," Bateman said Monday of his plans for the executive team. "I am sure that there is a tremendous depth of talent in this organization, so some of it may be who can handle additional responsibilities, and some of it may be do we need to bring in outside people."

SoutheastHEALTH began its executive search with a 300-candidate field, according to Thompson, and narrowed its number of prospects several times before offering on-site interviews to six, then three, people. An executive search firm, Witt/Kiefer, led the search activities.

Bateman and one other candidate were selected by a 12-person committee of SoutheastHEALTH doctors and board members of the health system and hospital: Thompson, Dr. Gabe Soto, Dr. Russ Felker, Dr. Dianne Woolard, Dr. Gregg Hallman, Dr. Ray Silliman, Steve McPheeters, Jerry Zimmer, Bob Neff, Frank Kinder, Jay Knudtson and Al Spradling.

Bateman has more than 20 years of management experience working in various roles, including in the for-profit sector and in not-for-profit hospitals and health-care systems.

John Skeans, chief financial officer for Southeast­HEALTH, served as interim CEO while a search for a replacement was conducted.

eragan@semissourian.com

388-3632

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