http://ipraudio.interlochen.org/Deck_Resigns.mp3
The Munson Healthcare system is under new leadership. CEO Doug Deck stepped down Wednesday. The Board accepted his resignation, and it's already appointed a successor.
The changes are immediate. But very little else is expected to change - including talks over a possible merger with Spectrum Health in Grand Rapids.
Few Answers On Deck's Departure
Munson staffers said Thursday that Doug Deck was not available for interviews, and a message left at his home went unanswered.
But, while his immediate departure may lead some people to question why, Board Chair Tom McIntyre says it was not because the Board was unhappy.
"I personally consider Doug a friend," he says. "And Doug was a wonderful addition to Munson Healthcare and served us well over the four-and-a-half years that he was here."
McIntyre says Doug Deck stepped down for personal reasons, and that he requested his departure be immediate. Since the board had long had a succession plan in place, that request was easy enough to fill.
Spectrum Talks To Continue
Munson Heathcare is the region's largest employer, and it's faced vocal critics as of late over a possible merger with a much larger health system. Munson announced back in January that it's been in talks with Spectrum Health, which runs most of the hospitals in Grand Rapids, as well as insurer Priority Health. The system has been creeping north, as well, into rural areas including Greenville and Reed City. And, besides Munson, Spectrum officials are also in talks with the hospital in Petoskey.
Tom McIntyre says Deck's departure has nothing to do with the Spectrum talks. He says, even though Deck was leading those negotiations, no momentum will be lost.
"I went down to Grand Rapids and met with them this morning," he said Thursday. "And we had a wonderful conversation and we both expressed our interest and intent to continue with our careful deliberations on these discussions between our two organizations. And so, I don't think that it's going to affect our process at all."
As the board accepted Doug Deck's resignation Wednesday, it also immediately appointed his successor. Ed Ness, who ran the hospital in Traverse City, now rises to oversee the entire Munson Healthcare system, which includes Paul Olivier Memorial Hospital in Frankfort, and Kalkaska Memorial.
New CEO Sees Same Reasons For Possible Merger
Ness also plans to keep up on talks with Spectrum. He says today the Munson Healthcare system is strong, both financially and in quality of care. But 60 percent of the budget is paid from government sources.
"And I think both because of healthcare reform discussions and state and local budget challenges, those payment sources are going to be challenged," he says. "We'll be faced with delivering care with less resources into the future, and so together we're going to have to figure out how to do that."
Ness says that's just one of the red flags for Munson. A second is recruiting doctors. That will get harder, he says, because fewer young people are going to med school.
"And I think the third is: being a tertiary hospital in the future is going to be very expensive," Ness says. "There is new technology, there's new information systems, and, frankly, new facilities that we need, that if we're going to keep and grow the services in this community we're going to need to invest in this community, invest in this hospital.
"So, I think there are several factors, but those are several that I see coming down the road."
Ness says a merger with Spectrum is no done-deal, and neither is it a silver bullet to tackle these future problems. But it may be part of the solution.
He can also see that the community is not convinced. Notably, local banker Harry Calcutt III wrote a letter to Munson questioning whether these problems really exist, and whether giving up local control would solve them. He also worries that there could be job losses, and an ugly shift in the culture of Northern Michigan healthcare.
Ed Ness says the criticism tells him that Munson needs to do a better job of making its case, and he says the local pride in a top-notch hospital shouldn't stop community members from asking a difficult question:
"What I would say is that they should be proud of what they've built. But the question is: How do we keep that for the next 20 years?"