UPDATE 6/2/15 5:51 PM: Oconee Regional Medical Center paid former CEO Jean Aycock more than $350,000 to resign. That's according to a separation agreement released by the hospital today.
Aycock resigned last week, amid financial problems that recently led to about a dozen layoffs. Last year, Oconee partnered with Navicent Health, which helps manage the hospital.
Recently, the public and some doctors have complained about cuts at the hospital and Navicent's new role. But David Groseclose, chairman of the hospital's board says Oconee entered into a five year agreement with Navicent in assisting in managing the hospital, not taking over. He says Navicent identified more than $4 million in cost reductions for the year. "Ways to lower our uh purchasing cost, ways to uh lower our insurance premiums," said Groseclose.
But what about layoffs? Groseclose says the hospital laid off about a dozen people in May based on Navicent's cost reduction plan. "The last thing you wanna do is have additional layoffs. We do everything we can, that is a last resort thing, if we can avoid that, we, we avoid it at all costs," said Groseclose.
But for now, Groseclose says, Oconee wants to bring more patients and specialty services in to the hospital. "Our goal is to increase revenues and reduce cost. And the way that you increase revenues is by increasing the services that you provide not decreasing those services," said Groseclose.
Groseclose says the board is coming up with more ways to reduce costs and turn the hospital around. He says, hopefully with the help of local doctors. "Hope and desire that they will meet and the physicians will then begin helping us identify things on the clinical side that can increase revenue and cut costs," said Groseclose.
Groseclose says the goal is to maintain a community hospital that provides quality care for its patients. He says the agreement states that Oconee can ask Navicent for financial help if they need it, but he says so far they haven't had to. He says it also guarantees that Navicent will make payments on Oconee's $24 million bond debt.
The Board of Directors at Oconee regional appointed acting CEO Brenda Qualls, who is the hospital's CFO. Groseclose says the board hopes to hire a full-time CEO in eight to twelve months.
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Oconee Regional Medical Center paid former CEO Jean Aycock $351,832 to resign.
That's according to a separation agreement sent to us from the hospital. The agreement states that the hospital will pay benefit related costs of around $30,000 for Aycock's retirement plan, life insurance, long-term disability and other benefits.
The agreement says no lawsuits can be filed from Aycock or the hospital.
This comes after the hospital's board received Aycock's letter of resignation on May 29th.
The Board of Directors at ORMC appointed acting CEO Brenda Qualls. Qualls is the hospital's CFO and sent an emailed statement to us. The statement says she agreed to serve as the acting CEO because she believes in the hospital and understands its importance to patients and the local community. "My priority is ensuring the hospital provides the very best care for patients. The board of directors is continuing to work toward bringing an interim CEO and will begin the search process for a long-term CEO. Those will be deliberate and thoughtful efforts. I look forward to working with the future leadership at ORMC," said Qualls.
Aycock's resignation comes amidst some financial problems that recently led to about a dozen layoffs.
Last year, Oconee partnered with Navicent Health, which helps manage the hospital. Recently, the public and some doctors have complained about cuts at the hospital and Navicent's role.
