By MICHAEL KITCH, LACONIA DAILY SUN
LACONIA — After six months as president and chief executive officer of LRGHealthcare, Seth Warren has resigned to return to Indiana where he said Tuesday that he is obliged to tend to pressing needs of his extended family and close friends. His resignation comes at a time with LRGHealthcare, which has been operating at a loss, is undergoing major restructuring of all aspects of its operations.
Scott Clarenbach, chairman of the LRGHealthcare board, said that LRGHealthcare has been operating at a loss and could not continue along this path.
"There will be reductions in force and changes in the way we do business," he said.
Warren will Leave LRGHealthcare on April 15. He said that he has accepted a similar position at a hospital in Indiana.
In a prepared statement issued Tuesday, afternoon the Board of Trustees announced the acceptance of Warren's resignation with "great sadness," adding that his decision "is strictly for personal reasons and came with much thought and consideration."
Clarenbach said, "I truly believe Warren is made of the right fabric and has the moral compass to lead us in the direction we must go and I'm saddened that events in his life have compelled to leave us."
Warren expressed his gratitude and appreciation to the staff at LRGHealthcare and to the community, stressing that "everyone has been very understanding."
Despite his foreshortened tenure, Warren said that he contributed to laying the groundwork for reversing the financial performance of the the organization by working with Prism Healthcare Partners LTD, a consulting firm. Prism, he explained, has reviewed all aspects of operations — labor and capital costs, billings and collections, clinical procedures and physician operations — and brought best practices to the table to achieve efficiencies, reduce costs and improve quality of care.
Clarenbach recalled Warren called him on Friday about inviting Prism to LRGHealthcare and when he agreed, the consultants arrived on Monday and met with the senior leadership on Tuesday.
"Seth had worked with Prism before and recommended bringing them in," he said. "It was his initiative."
Warren said that Prism has identified between $15 million and $21 million in either reduced costs or increased revenues, which represent between 7.5 percent and 10 percent of the operating budget.
"This is significant," Warren said. "It will get us operating in the black with an opportunity to reinvest in the organization."
He said that the challenge for his successor will be to implement the measures that have been identified and recommended.
"Seth's six months with LRGHealthcare have clearly been beneficial to the organization," Clarenbach said. "In particular, the affiliation with Prism Health Partners will pay significant dividends and above all positive returns for our patients."
Clarenbach said that the trustees will meet on Thursday to consider an interim arrangement in anticipation of undertaking a search for a permanent successor. He said that since the board conducted an extensive search for a president and chief executive officer just six months ago, the process may not be prolonged.
Before coming to LRGHealthcare last October, Warren, a third generation hospital administrator, spent the last 16 years of his career with the Sisters of St. Francis Health Services Inc., or Francisan Alliance, a Catholic health care system headquartered in Mishawaka, Indiana, consisting of 13 hospitals and numerous clinics, with 18,000 employees. In 2006, BusINess Magazine chose Warren among the top 20 executives under 40 in northwest Indiana. In February 2008, Warren was named president of St. James Hospital in Chicago Heights and Olympia Fields, Illinois, a 400-bed teaching hospital, and chief executive officer of the Franciscan Alliance for the south suburban Chicago region.
A native of Moorestown, New Jersey, Warren earned his bachelor's degree at the University of Richmond in 1989 and a master's degree in business administration from Syracuse University 10 years later. He joined the CentraState Medical Center in Freehold, New Jersey, as a compensation coordinator in 1990 and served in the same position at the St. Agnes Medical Center in Fresno, California, from 1992 to 1995 before spending three years with The Hunter Group, an executive search firm headquartered in Fort Worth, Texas.
- Category: Local News
- Hits: 1574