Updated 2:20 p.m.
MetroHealth System has removed the “interim” tag from Mark Moran and named him its full-time chief executive and president, according to an internal memo(pdf) sent to hospital staff.
Moran joined MetroHealth in March 2008 from Booz Allen Hamilton, the strategy and technology consultancy. Since then, he’s overseen a series of reforms as well as layoffs. His strategy has, in the end, strengthened the hospital, the memo stated.
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The health system also extended Moran’s employment contract by two years in an agreement that will last through 2011. He will be paid $500,000 with up to $140,000 in incentives – the same terms as his initial deal.
The board voted to give Moran the full $140,000 in incentives this year, but Moran did not take the payment and returned it to MetroHealth, said Eileen Korey, the health system’s vice president of communications.
The internal communication noted that under Moran’s leadership, the system ended the year with a strong balance sheet, improved operating performance and an upgraded bond rating from Moody’s.
MetroHealth is owned by Cuyahoga County, which includes Cleveland, and is the county’s primary safety-net hospital.
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“Mark Moran has accomplished what we asked of him,” William S. Gaskill, MetroHealth board chair, stated in the memo. “He is guiding the clinical and administrative leadership through a process to transform MetroHealth so the organization can continue its excellent service to patients and the region, invest in growth, and achieve the vision we defined a year ago.”
MetroHealth lost $2.2 million in 2007 and the hospital posted an $8 million loss in the first quarter of 2008.
Moran took over for John Sideras.
The health system laid off more than 100 workers last year and eliminated dozens of unfilled positions. But it also instituted a series of new programs.
It struck a deal with Cuyahoga County to encourage county employees to use MetroHealth in the hopes of adding more paying patients. It also started to enforce a policy that keeps poor and uninsured patients who live outside Cuyahoga County from receiving free care at the facility.
Metro recently launched its first medical homes program, restructured its fees for low-income and uninsured patients and changed the way it manages patients who use the emergency department for non-emergencies.
The health system is still struggling. It broke even in 2008, but Moran warned that there could be additional layoffs this year.
“Our strategic campaigns are producing positive results, but this kind of transformation takes time,” Moran stated in the memo.
