UMC chief Hale resigns

Wednesday, Jan. 29, 2003 | 11:06 a.m.

The man in charge of Clark County's financially troubled public hospital has resigned.

Bill Hale announced Tuesday that his last day as the chief executive officer of University Medical Center will be Friday. He has held the position since August 1993. Hale did not respond to requests for comment Tuesday.

Mike Walsh, the hospital's chief financial officer, will serve as interim chief executive until a permanent replacement can be determined following a national search, officials said.

Clark County Commissioners, who serve as the hospital's board of trustees, authorized a $38 million infusion last month to keep UMC's accounts current. But the hospital, according to county staff and commissioners, continues to lose more than $2 million a month.

The commission last week authorized a citizens task force to rethink the hospital's role in the community. A team of internal county auditors and three outside consultants also are looking at the hospital, seeking short and long-term fixes for the financial problems.

Commissioner Yvonne Atkinson Gates said the most important consideration is "the overall financial welfare of the county."

"As a board, we have a fiduciary responsibility to handle the money of the hospital and the county," she said.

Commissioner Rory Reid, who earlier this month warned that the county could no longer afford to continue to subsidize the hospital at these levels, said the fiscal problems could not be attributed to a single person.

But, Reid added, "we need new leadership at the hospital."

Commission Chairwoman Mary Kincaid-Chauncey said Hale is not a scapegoat for the financial problems.

"I'm not sure he did anything wrong financially," she said.

County spokesman Erik Pappa said today that Hale, whose annual salary was about $235,000, will receive "a normal severance package" established for the post of chief executive officer of the hospital, plus pay for unused sick time. However, he said, the exact dollar amount of that compensation was not available this morning.

Walsh, the incoming interim CEO, said the hospital's money woes stem directly from the state's mandate that the institution provide care for all comers, particularly uninsured and indigent patients. The country's economic downturn and souring insurance rates have sent more of those patients to public hospitals coast to coast.

UMC, Walsh said, provides the majority of care to those populations in Clark County.

A small change could lead to a turnaround for UMC, he said.

"The payer mix is a very fragile thing," Walsh said. "A couple of percentage points' shift one way or the other can lead to success or failure."

"More insured business is going to be key to our recovery plan."

He said some economic recovery, including more people receiving either Medicaid coverage or traditional insurance coverage, provide hope for the hospital's bottom line.

Walsh has been in Las Vegas since 1983, when he was controller at Valley Hospital Center. He is credited with turning around the financially troubled Community Health Centers of Southern Nevada, a nonprofit center which had suffered years of losses before he took over as chief executive in March 1994.

Walsh also has been chief financial officer and chief operating officer at Summerlin Hospital. Although he took over the top finance job at UMC only last month, Walsh has served in other jobs at the public hospital in the 1990s, including as a finance officer and director of planning.

Walsh said he would like to be considered for the top job at UMC when the county commission gets ready to make a choice.

"I'm in this for the long term," he said. "I serve at (the commissioners') convenience. I will be happy to do whatever the commissioners suggest.

"I would hope that my performance will lead to success and a turnaround for the hospital. If at that point, if they are interested, I would be interested."

County Manager Thom Reilly called Hale's resignation entirely voluntary, and said they first discussed the possibility of resignation one week ago. He said Hale, who has been chief executive officer for a decade, will continue to work with county leadership.

"He's not disappearing. He's willing to work with us," Reilly said.

Reilly said he wants to give Walsh time to work with the citizens group, the auditors and consultants before starting a national search for a replacement.

"We're not going to start the search right now," he said. "We are going to do a search. We're just not doing it right now."

In the short term, the county should be ready to announce some cost-containment measures within a week, Reilly said. Consultants also are looking at quick ways to boost the Medicaid reimbursements, he said.

Reilly said the county remains fully committed to providing quality health care to the Southern Nevada. Kincaid-Chauncey agreed.

"We're still going to provide the best quality care possible," she said. "I really don't think the average person will see a lot of difference with Mr. Hale gone."