Baptist Health CEO out amid continued operating losses - WDRB 41 Louisville News

Baptist Health CEO out amid continued operating losses

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Baptist Health CEO Steve Hanson left the organization effective March 21, 2017. Baptist Health CEO Steve Hanson left the organization effective March 21, 2017.

LOUISVILLE, Ky. (WDRB) --  Steve Hanson, the CEO of Louisville-based Baptist Health, is leaving “immediately” after about four years on the job.

Baptist wouldn’t comment on the circumstances leading to Hanson’s abrupt departure, but the organization has reported operating losses for the last five quarters, including a $28.3 million loss for the three-month period ended November 30.

“We appreciate Steve Hanson’s contributions to Baptist Health over the past four years,” Allen Rudd, the chairman of the nonprofit’s board of directors, said in a press release Tuesday. Rudd declined an interview request.

“All I can say is, we don’t comment on employee departures,” said Kit Fullenlove, a spokeswoman for the organization.

The organization will be led on an interim basis by Vice President and Chief Legal and Regulatory Affairs Officer Janet Norton and by Chief Financial Officer Steve Oglesby. Both have been with Baptist for more than 20 years, according to the news release.

With nine hospitals and about $2.3 billion in annual revenue, Baptist is one of the largest health systems in the state.

The organization lost $41 million in its most recent fiscal year ended Aug. 31, 2016.

Then, its string of quarterly losses widened significantly to $28.3 million in the period ended in November.

Baptist’s most recent financial report, dated Jan. 31, promises to turn the organization’s performance around.

“Management understands the implications of continued operating losses,” the report says. “There are significant opportunities for cost reduction and revenue enhancements in all Baptist entities.”

Last week, Baptist said it would cut 288 jobs – including 149 at its corporate office in Louisville.

“This continues to be a time of both transformation and great uncertainty in the healthcare industry,” Baptist said in a March 15 statement. “Baptist Health is realigning its structure to best meet the needs of our patients and communities within a challenging financial environment.”

In the Jan. 31 report, Baptist said it’s “working on an operating plan” to achieve a 3 percent to 4 percent profit margin in the organization’s 2019 fiscal year.

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