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Analysis

Tenet C-suite Shakeup Follows Sluggish Q3

By John Commins  
   November 28, 2018

Saum Sutaria, MD, has been named COO with direct oversight of hospital operations. Long-serving President of Hospital Operations Eric Evans is out and taking his title with him.

Tenet Healthcare Corp. on Wednesday announced an executive shakeup a few weeks after the Dallas-based for-profit hospital chain reported sluggish third-quarter performance.

Saumya "Saum" Sutaria, MD, a longtime senior partner at McKinsey & Company, was named COO for Tenet, effective Jan. 6. 

Gone is Eric Evans, president of hospital operations, who after 14 years at Tenet will leave at the end of this month.

Sutaria will directly oversee Tenet's hospital operations business, including acute care hospitals, hospital-affiliated outpatient centers and employed physicians, in what the company called "a newly created enterprise role."

He will report to CEO and Executive Chairman Ron Rittenmeyer, with a focus on operational improvements, integration and other initiatives for Tenet businesses, including USPI and Conifer Health Solutions.

"We are continuing to add top talent to drive improvements in performance and maximize opportunities for our business," Rittenmeyer said in a media release. "Saum's knowledge of healthcare dynamics and his relationships in the space are unmatched."

Sutaria's hiring and the portfolio of his new position made Evans and his title redundant.

"With the addition of Saum, it is clear the role of President of Hospital Operations is a layer which Eric and I, in consultation with our board, mutually decided to eliminate," Rittenmeyer said. "This is consistent with our philosophy of a flatter organization."

The shakeup comes three weeks after Tenet posted a $9 million loss in Q3 and saw revenues down 2.7% year-over-year though adjusted EBITDA rose $70 million.

"Our hospitals did not meet our expectations and we are focusing on specific areas to address those gaps," Rittenmeyer said on Nov. 5.

Tenet on Wednesday reiterated its Nov. 5 outlook for 2018 and said that it continues to expect Adjusted EBITDA growth of 3% to 5% in 2019.    

“With the addition of Saum, it is clear the role of President of Hospital Operations is a layer which Eric and I, in consultation with our board, mutually decided to eliminate. This is consistent with our philosophy of a flatter organization.”

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

Photo credit: Casimiro PT / Shutterstock.com


KEY TAKEAWAYS

Sutaria's new role as COO made Evans redundant.

The shakeup comes three weeks after Tenet posted a $9 million loss in Q3.

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