Health System exec. resigns

Chief Operating Officer Robert martin resigned after only nine months. The reshuffling of University of Pennsylvania Health System executives continued this week with the surprise resignation of Chief Operating Officer Robert Martin on Monday. Martin's resignation comes just 13 days after former Chief Executive Officer and Medical School Dean William Kelley was asked to step down from his position by University President Judith Rodin. "He had done a terrific job," said Health System spokeswoman Lori Doyle, adding that Martin felt that stepping down was the best thing for him. Martin was not available for comment last night. Health System officials announced that I. William Ferniany, who most recently served as the Health System's senior vice president for administrative services, will serve as the interim COO while a national search for a permanent replacement is conducted. Although Martin's reason for leaving was not immediately clear, Interim CEO Peter Traber said in an e-mail sent to Health System administrators that it was Martin's own decision to resign from the position he held for nine months. Some have speculated, however, that his departure was related to the role the Hunter Group -- the Florida-based consulting firm that was brought to campus in July to help administrators slash costs -- is expected to play in UPHS as it attempts to put its financial turmoil behind it. With the announcement of Traber's appointment almost two weeks ago, Rodin said the firm would continue to advise Health System officials on their task of bringing the financially troubled system back to its feet. University officials have contracted the Hunter Group for a three-month consulting engagement, Ferniany explained, though that contract could be lengthened if needed. Alan Zuckerman, a consultant with Health Strategies and Solutions in Philadelphia, said the recent departures of Martin and Kelley could portend more UPHS changes. "It may be suggestive of a broader role that the Hunter Group is going to play," Zuckerman said. He explained that in the past, when executives of Hunter Group clients resigned, it was usually because the firm was asserting a greater degree of administrative control. But Health System and University officials have continually stressed that the Hunter Group executives are not going to assume administrative control of UPHS. "They're not here to slash and burn and they're not here to run the place," insisted Ferniany, who has worked for the Health System for seven years. Other experts in the field saw the recent departures as standard. "I don't think the Hunter Group is behind this at all," explained Joshua Nemzoff, the head of Nemzoff and Co., a New Hope healthcare consulting firm. "There is a rather clear, linear correlation between institutions losing significant amounts of money and management turnover." In addition to Martin and Kelley, the Health System has lost several other administrators over the past year. In October, former Chief Medical Officer David Shulkin stepped down to take a position with DoctorQuality.com. Former Chief Financial Officer John Wynne resigned in April for health reasons. And former Senior Vice President for Hospital Operations Thomas Beeman left in September. As interim COO, Ferniany said he will implement whatever strategies Traber, Rodin and the University Trustees agree upon. Ferniany added he is confident UPHS will meet the goal administrators set in May, which is to run a deficit of no more than $10 million in the current fiscal year. "We will probably make our budget this year," he said. "We will come awful damn close, that's for sure."

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