In rededicating itself to its mission of Christ-centered health care, Baptist Health System (BHS) has dedicated itself to a course of openness, accountability and communication, according to Dr. Michael Drummond, chairman of the BHS board of trustees.
The new direction means BHS trustees will work closely with BHS’ founding organization, Birmingham Baptist Association (BBA). BHS trustees will seek to improve communication methods about who the trustees are as well as how BHS is doing, Drummond explained.
Ricky Creech, director of missions for BBA, joined Drummond in his move to activate increased accountability between BHS and BBA, as well as for all levels of hospital management.
“Just as (the BHS) CEO is held accountable to the board of trustees, the board of trustees should be accountable to BBA,” Creech said. “We’re excited about that more formal relationship between BBA and BHS. I think it will make a difference in how we make (BHS’) compassionate care witness to the love of Christ a reality.”
BHS and BBA are also seeking ways to communicate with Alabama Baptists about the activities of the system and opportunities for ministry within the system.
New Testament thinking
“I think the themes of openness, accountability and communication are woven throughout the Gospels and the New Testament,” said Drummond, a vascular surgeon at Baptist Medical Center Princeton and a member of Brookwood Baptist Church, Birmingham.
“Everything we are doing needs to be openly communicated to the Baptist community,” he said, noting this means discussing the board’s reasons for choosing to restructure and the challenges involved.
Drummond explained that BHS’ revenue increased at a rate of 8 to 9 percent every year for the past two years, with the same increase projected for this coming fiscal year.
However, the revenue was used for operating costs, so BHS’ cash flow was not seeing the same increase, leaving less money available for technological advancements.
“There is an ongoing need for capital improvements in health care,” Drummond said. “But you must generate enough profits to fund [them].”
In order to generate these profits trustees are realigning BHS’ business plan, Drummond explained. “We believe we can improve profits by increasing revenue and decreasing costs.”
He stressed that improved profits did not mean higher salaries for BHS administration. “We think
[our patients] deserve the best,” Drummond said. “The profits will go back to the community by way of hospital-delivered health care.”
The improved stewardship of BHS’ finances is also part of the board of trustees’ commitment to increased accountability.
“God assembled these (trustees) who need to make this business of BHS more effective,” he added. “We want to show we’re better stewards of our resources than we have been in the past.”
To help it stay true to its mission, the board has begun meeting once a month, with biweekly teleconferences between meetings.
Drummond said because of the frequent meetings, all committees of the BHS board of trustees, except those dealing with liability and legal compliance issues, were dissolved and replaced with 15 task forces.
Led by one or two trustees, these task forces will review issues such as BHS’ debt, the buying of supplies and governance issues during the assessment phase of the restructuring process.
Seeking a new CEO is another task force duty, because when BHS trustees voted July 12 to restructure the current system rather than sell or seek a partnership, then-CEO Dennis Hall was dismissed.
Although the search for a new CEO has not yet begun, the team, led by Gary Furr, pastor of Vestavia Hills Baptist Church, Birmingham, and Wallace Malone, CEO of SouthTrust Corporation and member of Mountain Brook Baptist Church, Birmingham, are reviewing three national CEO search firms.
The firms will help them in their “nationwide” search for “God’s person,” Drummond said.
Although the CEO slot is the only position currently needing a replacement, Drummond said, “We’re looking for, in the entire senior management team, well-qualified health care managers who share our mission.”
As to the CEO specifically, he added that, “We need someone with experience to steer the ship under the authority of the board of trustees. We have not had enough oversight in the past.”
Drummond said although the board has always had the authority of oversight of the BHS administration, it had not always utilized it.
However, Drummond said the trustees are realizing a model of accountability that leads from BHS employees to the administration, from the administration to the BHS board of trustees and on to the BBA executive board and its churches.
Creech added that in turn the BBA executive board is responsible for more communication with the BBA churches.
“This will be a more formal and strategic relationship with BBA than before,” Creech said. “It’s more of a return to a parent organization (for BBA).
BHS will be more accountable to the BBA executive board and the local congregations.”
Recognizing the board’s responsibility of oversight, Drummond said the BHS board is now making the majority of the senior management decisions.
He said the current management team, led by interim CEO William Hynson, BHS executive vice president of hospital operations, is responsible for the day-to-day decisions.
Another task force made up of trustees and five members of the BBA executive committee is looking at governance issues between the two entities.
Currently, up to 28 trustees can be appointed to the BHS board, including two advisory members who have no vote.
These are the BBA director of missions and the BBA executive committee moderator. Creech and moderator Dan Nichols, pastor of Walkers Chapel Baptist Church, Fultondale, currently fill these positions.
At a past BBA executive meeting, the suggestion was made to reduce the maximum number of board members to 12 or 14 to make it more effective.
The BHS board was down to 17 members, because five trustees resigned following the July 12 meeting and several positions were already vacant.
Malone and Randy Atkinson, pastor of Hillview Baptist Church, Birmingham, were appointed by the BBA executive committee to finish terms ending Dec. 31, bringing the number of trustees to 19.
Malone and Atkinson, who are both former trustees, said they are honored to be able to rejoin the board of trustees.
“I have a real interest in trying to help and support the system as it pulls itself together and moves forward in a very positive manner,” Malone said.
Drummond suggested waiting to decide about the number of trustees until all governance issues had been addressed by the BHS task force.
He also stressed that the board needs more diversity in terms of more businesspeople, as well as other health care providers such as nurses.
“It is very important that the trustees have agreed to work with the BBA on (governance issues),” Creech said.
To guide the BHS trustees through the restructuring process, they, with the approval of the BBA executive board, have hired Josh Nemzoff of Philadelphia as the general consultant.
Nemzoff is also coordinating the search for consultants in specific areas of the restructuring.
“In facing these issues the (BHS) board is looking to the best consultants in the nation,” Creech said.
Drummond said the cost of hiring Nemzoff and the other consultants would be absorbed by the possible savings they can provide.
He pointed to the task force on buying products and supplies. For this year, BHS budgeted $260 million for supplies.
“We have good evidence that we can save 10 to 12 percent on supplies,” Drummond said.
That would equal a savings of $26 million a year. A savings which, in Drummond’s words, makes the cost of consultants miniscule.
Along with being open and accountable to BBA and the Baptist community, Drummond said BHS wants to do a better job of communicating with Baptists.
Creech agreed, saying, “One thing we (BBA and BHS) have taken for granted is (BHS’) relationship with congregations.”
Drummond added that many may not be aware of BHS’ great dependence on Baptists.
“We are a Baptist ministry,” he said. “If it weren’t for the years of dedication and involvement of Baptist ministers and laymen, (BHS) wouldn’t be where it is today.”
He said what BHS needs most is the prayers and patronage of Baptists.
“We’re in the most rigorous rededication of ministry (that has occurred) in the last 82 years,” Drummond said.
“So pray that it remains a godly process and that His purpose is achieved,” he noted.
BHS also needs volunteer support from church members, Drummond said. “We want to ask them to be involved as lay ministers and volunteers. We want to strengthen our current volunteers.”
Creech said all this will be invaluable to help keep BHS alive.
“We came so close to letting a legacy go,” Creech said. “The decision has been made to stay the course, and we must seek innovative ways to do it.”
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