Joe Sluka's decision to step down will take effect the week of July 12.
The president and CEO of St. Charles Health System, a nonprofit, four-hospital network headquartered in Bend, Oregon, announced his decision to depart from his position on Tuesday.
Joe Sluka, who led the system for nearly eight years, stated in a public letter that it was with "mixed emotions" that he had come to the decision.
"Having served in this role for nearly eight years, I feel deeply connected to Central Oregon and the communities St. Charles has the privilege to serve. This is not an easy decision," Sluka said in his letter.
"At the same time, after leading through more than two years of a global pandemic and the corresponding recovery I feel it is time for me to step aside, recharge and provide the opportunity for new operational leaders to guide St. Charles forward."
Steve Gordon, MD, a former member of the St. Charles board of directors and an experienced healthcare executive, will serve as interim CEO, while Sluka will transition into a new role serving as a strategic advisor.
"Having spent several years on the St. Charles Board of Directors, I understand the unique role our health system plays in the Central Oregon community. I am energized to build on Joe's legacy and advance and strengthen St. Charles despite the current challenges the health care industry faces," Gordon said in a statement. "I will continue to work closely with Joe in his strategic advisor role and am grateful that I’ll have his support, insight and ideas moving forward."
During Sluka's tenure as president and CEO, the regional health system had strategic growth initiatives, including the construction of a new patient tower at St. Charles Bend, the expansion and remodel of St. Charles Madras and St. Charles Prineville campuses, the expansion of services in Redmond, and additional outpatient clinics were created in La Pine and Bend South.
"Joe’s leadership through a period of growth for the health system and throughout the past very challenging two years of a global pandemic have been exemplary," said Jamie Orlikoff, chairman of the St. Charles board of directors, said in a statement. "He has been a reassuring and trusted voice to the Central Oregon community and has also been an important advocate for health care resources at the state and national level. On behalf of the entire board, I would like to thank Joe for his service."
The leadership transition will happen sometime this week, the organization said in the press release. A national search for a permanent president and CEO, run by the St. Charles board, will be forthcoming.
Sluka's decision to step down follows the health system's rocky financial start in the first half of 2022.
In May, St. Charles reported a $17.2 million operating loss for the first quarter of the year, affected by delayed surgeries during the COVID-19 pandemic. Additionally, that same month, the health system cut 181 workforce positions, which impacted 105 caregivers.
In June, physicians and other healthcare workers filed for union representation from the American Federation of Teachers, HealthLeaders previously reported.
A physician involved in the move to seek union representation at St. Charles Medical Group told HealthLeaders that the primary impetus of the effort is to gain decision-making authority at the medical group and St. Charles Health System.
"It is mainly concern about bad administrative decisions. It has gone from bad decisions to frustration and concern about the healthcare that we are providing. The term union tends to make people think about things like pay and strikes, and that is not a major part of the discussion. It is concern about patient care," Lester Dixon, MD, an emergency room physician at St. Charles Medical Group, said.
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.