Skip to main content

Beleaguered Fairview Health CEO to Retire in July

 |  By John Commins  
   May 25, 2012

Fairview Health Services CEO Mark Eustis will retire this summer amid allegations that the Minneapolis-based health system he led for five years used strong-armed and possibly illegal debt collection tactics against patients.

Eustis, 59, joined Fairview in 2007 and his contract was due to expire on July 31. Fairview's board of directors met in a special session Wednesday and voted not to renew it.

"Mark committed to five years as Fairview's CEO," Board Chair Chuck Mooty said in prepared remarks. "During that time, he established a clear, compelling vision for the future of healthcare delivery at Fairview."

Mooty will serve as interim CEO at the seven-hospital system, effective August 1, until a successor is named.

Attempts by HealthLeaders Media to contact Eustis on Thursday were not successful. The health system said it would have no comment beyond the media release announcing Eustis's departure.

The Star Tribune newspaper reported that Eustis announced his departure in a memo to employees on Thursday morning, saying in part: "I believe deeply in Fairview and the vision we have set in motion. I can retire knowing that what we have worked so hard to establish will carry forward."

Fairview had come under the scrutiny of the Minnesota Attorney General Lori Swanson, who issued a scathing multivolume report detailing strong-armed bill collection tactics that allegedly were recommended by Accretive Health Inc., a Chicago-based consulting firm that Eustis had hired.

Fairview severed its contract with Accretive in April.

After the board ended its ties with Eustis this week, they had only kind words for him and no mention of Accretive or the AG's investigation. In the media release announcing his departure, Eustis was credited with "spearheading transformation of Fairview's care delivery and core business model to improve clinical outcomes, enhance the patient experience and reduce total cost of care. Under Eustis' leadership, Fairview created a new care model focused on improving the health of defined patient populations, developed and implemented one of the first shared-savings contracts in the country, and became one of only 32 Medicare Pioneer Accountable Care Organizations in the country."

The Pioneer Press reported this month that inspectors from the Minnesota Department of Health visited the hospital to conduct an on-site inspection and the Centers for Medicare & Medicaid Services has launched an investigation to determine if Fairview's billing tactics violated the federal Emergency Medical Treatment and Active Labor Act (EMTALA). The law requires hospitals that take Medicare money to provide appropriate care for emergency room patients regardless of their ability to pay.

Accretive has denied any wrongdoing but told the Chicago Tribune this month that it is considering ending its debt-collections services, which represent about 5% of total revenues.

Mooty said the search for Eustis's successor will begin immediately.

"We will be looking for a dynamic, proven executive to lead Fairview's highly skilled and committed leadership team and its mission-driven employees and providers, and to continue to elevate Fairview's leadership position in the national health care community," Mooty said.

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.

Tagged Under:


Get the latest on healthcare leadership in your inbox.