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Word spread quickly through the hallways yesterday at the Hospital of the University of Pennsylvania that William Kelley's 10-year tenure as chief executive officer and dean was over. By the time faculty arrived at a 5 p.m. meeting to officially hear the news, most had already found out about the changing of the guard. They knew that Kelley was out and that Department of Medicine Chairman Peter Traber would be temporarily taking over. And the students, faculty and staff at one of the nation's premier health care establishments expressed mixed emotions about the ousting of Kelley. Some praised the job Kelley had done, noting his vision and passion for improving the institution. But others noted the all-too-evident financial problems the Health System is fighting -- problems that may only be solved by a new leader. "As they say 'the king is dead, long live the king,'" Neurology Department Vice Chairman Howard Hurtig said. "[Kelley] was a visionary, strong leader. He built the system, he brought it from the brink of insignificance." With his insightful vision of the Penn Medical Center's future, Kelley created a lasting reputation among students, faculty and doctors. Under his leadership, UPHS was created through his purchase of three area hospitals and the Medical School's academic prestige dramatically increased, moving the school to the No. 2 mark in National Institutes of Health funding. But over the past two years, the Health System lost nearly $300 million, forcing massive cost-cutting and speculation about Kelley's future at the University. "Kelley certainly had a strong vision and I think he succeeded in moving the health care system in that direction," said Daniel Skovronsky, a sixth-year doctoral student. "Due to factors that seemed beyond anyone's control, things didn't work out that well." "The Medical Center had it's problems -- although well intentioned," said a Medical School student, who refused to give his name. "I don't know if it worked out as well as [Kelley] expected." Top Penn administrators, including University President Judith Rodin and Provost Robert Barchi, announced the administration changes to faculty yesterday in Stemmler Hall. After the meeting, some doctors noted that they feel the Health System has faced too many challenges and difficulties and believe that now is the right time for a change in the administration. "I'm optimistic [about the change] -- we seem to be heading for new things," one HUP doctor said. "Everybody hopes that it's going to be for the very best," Allery and Immunology Professor Andrea Apter said. She added that "it's a very difficult time for the Health System. I really do have the sense that the faculty supports the change." Anna Grosz, a third-year Medical School student, expressed her frustration with the situation. "Does it really matter who's in charge of the Health System?" Grosz asked. "If they have no money, it doesn't matter." Daily Pennsylvanian staff writers Michael Sonsino and Aliya Sternstein contributed to this story.

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