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Parkland Health Names New CFO

News  |  By Christopher Cheney  
   July 25, 2017

Richard Humphrey will leave Texas Health Resources to take the chief financial officer role at Parkland Health in Dallas.

Parkland Health & Hospital System has named Richard Humphrey, CPA, MBA, as the large Dallas-based safety net hospital's executive vice president and CFO.

Humphrey currently serves as senior vice president of Arlington-based Texas Health Resources. 

"Uncertainty is a given in the complex and evolving healthcare industry today," Fred Cerise, MD, MPH, Parkland's president and CEO, said Monday in a prepared statement. "Richard's extensive experience in healthcare finance will be invaluable as we navigate the challenges facing Parkland in the months and years ahead and strive to use resources effectively and efficiently to deliver care."

Humphrey is set to begin working at Parkland on Aug. 21.

In comments to HealthLeaders, Humphrey identified reasons why Parkland is a good fit for his career:

  • "The organization has a compelling mission and vision as well as a new world-class facility, but they also have a defined strategy for the future."
     
  • "As a member of Parkland’s senior executive team I will be able to collaborate with leaders and staff as we execute and refine the strategic plan."
     
  • "Although Parkland has a new facility, the operating margin is thin. I will be able to use my experience to take the lead in looking for ways to close the financial gap as we move from pay for volume to a triple aim of quality, patient experience, and cost efficiencies. In a prior setting, I was brought in to close a financial gap, and I can bring that experience to Parkland."
     
  • "I felt a strong connection with Parkland's leaders, and I look forward to working collaboratively with everyone in the system."

Parkland Memorial Hospital is an 870-bed facility linked with 12 community health centers. For the fiscal year ending September 2015, the organization posted total operating revenue at $977 million, with a $500 million operating loss.

The hospital has posted operating losses for several years and efforts to stabilize the organization's finances include a federally supervised corrective action plan adopted in 2012.

Hospitals based in Texas, which has not expanded Medicaid under Obamacare, face daunting financial challenges, Humphrey says.

"All organizations are facing declining reimbursements that are not keeping pace with inflation. There is continual pressure on operating margins especially for public safety-net hospitals such as Parkland. Medicaid and Medicare payments are shrinking as are various supplemental government payments, and the burden often falls on the local taxpayer. It is difficult to manage high volumes of low-income and uninsured patients at the same time there is uncertainty in government reimbursement."

In addition to his new role at Parkland and current role at THR, Humphrey has held two other top healthcare-finance posts:

  • Vice president of finance and CFO: THR Harris Methodist Hospitals, Fort Worth, TX, which features four hospitals
     
  • Vice president of finance and CFO: Kershaw Health System, Camden, SC, a public safety-net integrated health system featuring a regional medical center

The CPA is a decorated Air Force veteran, attaining the rank of captain. He served as a nuclear-armed B-52 navigator, earning the National Defense Service, Air Force Commendation and Combat Readiness medals.

Humphrey earned an MBA from Golden Gate University in San Francisco and a bachelor of science degree from Carson Newman University in Jefferson City, TN.

In addition to his CPA, he is a certified internal auditor (CIA), certified healthcare financial professional (CHFP), certified treasury professional (CTP), and a fellow of the Healthcare Financial Management Association (FHFMA). He served in the Air Force as an officer and B-52 navigator.

Christopher Cheney is the CMO editor at HealthLeaders.


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