Just as Penn's Health System was finally showing signs of stabilization, it has suffered another blow with the resignation of CEO Robert Martin, one of the key architects of the system's future and the man responsible for pulling it out of its spiralling deficits.
The long-beleaguered network -- which includes the Medical School, a number of Penn-owned hospitals in the city and its suburbs and several other remote facilities and affiliates -- posted losses which at the end of the '90s had mounted to several hundred million dollars, necessitating a 20 percent cut in the Health System's workforce and the scaling-back of Penn's once-ambitious dormitory and dining plan that would have revolutionized undergraduate life.
Under Martin's stewardship, which began following the surprising departure of former CEO Peter Traber in 2000, the endless sea of red ink was quickly turned around. And while the Health System has not recouped its massive losses, it has posted a surplus for the last two years.
What's more, Martin has been instrumental in developing the plans for Penn Medicine, a Penn-owned not-for-profit corporation which is designed to shield the University from liability should the hospitals begin hemorrhaging money once again.
Martin claims that his time had come as he has accomplished everything he set out to do, but this assertion seems slightly dubious. Penn Medicine is still far from a reality, and though the Health System is not losing any more money right now, its financial situation remains precarious.
But whatever his reasons, Martin's impending departure is disappointing. From all appearances, he has done a remarkable job, aptly and deftly steering the Health System through some of its most difficult times to fiscal solvency. His decision also means that the Health System will have its fourth CEO in as many years.
The recovery has just begun, and the Health System and Penn Medicine need a long-term leader to see them through this arduous transition. Martin will not be this leader. But in finding his successor, the University must be sure that it finds a CEO who will be around for more than a year or two.
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