Page 17 - Modern Healthcare (January 2020)

Executives
Co-CEO structure at CommonSpirit
to end as Lofton announces retirement
By Tara Bannow
Lofton became the CEO of CHI in
2003. In a news release, CommonSpirit
COMMONSPIRIT HEALTH is the lat-
said Lofton chose to announce his re-
est health system to drop the dual CEO
tirement just before CommonSpirit’s
model after announcing last week that
first anniversary on Feb. 1 because it has
Kevin Lofton will retire this summer. Downers Grove, Ill.
When he steps down on June 30, a “strong foundation, a clear mission
Lofton will have served 17 years as and strategy, and a talented leadership
CEO of Catholic Health Initiatives, the team in place.”
predecessor organization that merged However, CommonSpirit has been
with Dignity Health on Feb. 1, 2019, to Under Lofton’s losing money since the merger, includ-
form Chicago-based CommonSpirit leadership, CHI grew ing a year-over-year operating loss of
Health, a massive not-for-profit system $227 million on $7.2 billion in operating
with 142 hospitals. from a 68-hospital, revenue in the first quarter of fiscal 2020,
Lofton, 65, currently shares CEO du- $6 billion enterprise which ended Sept. 30, 2019. Analysts
ties with Lloyd Dean, who will become to a $15.5 billion have pressured the health system to ex-
the organization’s sole leader. The two plain why progress toward cost savings
have distinct responsibilities within the organization in isn’t happening faster.
corner office, with Dean, the former 18 states at the time
CEO of Dignity, overseeing clinical, of the merger. Before joining CHI, Lofton served
financial and human resources and as CEO of Howard University Hospital
Lofton in charge of advocacy, compli- in Washington, D.C., and UAB Hospital
ance, IT, international business, legal, Lofton received $6.6 million in to- in Birmingham, Ala., as well as chief op-
philanthropy, system partnerships and tal compensation in CHI’s fiscal 2017 erating officer of UF Health Hospital in
governance. which ended June 30, 2017, according Jacksonville, Fla. He also served as the
“It has been an honor to share the cre- to Modern Healthcare’s executive com- AHA’s board chairman in 2007, regent at
ation of CommonSpirit Health with Kev- pensation database. large in the American College of Health-
in and there is no question that all of us care Executives and as a member of the
have appreciated the gifts that he brought Some health systems have dab- Executive Leadership Council. He has
forward,” Dean said in a statement. “I will bled in the co-CEO model following been included in Modern Healthcare’s
forever cherish the opportunity to have mergers, and experts have told Mod- 100 Most Influential People in Health-
been a part of this journey with him.” ern Healthcare it can be a potentially care list 15 times, placing No. 54 in 2019.
Under Lofton’s leadership, CHI grew successful short-term solution, so long Tessie Guillermo, CommonSpirit’s
from a 68-hospital, $6 billion enter- as duties between the two are well-de- board chairwoman, called Lofton an
prise to a $15.5 billion organization fined and the set-up doesn’t last more “exceptional leader” in a statement.
in 18 states at the time of the merger. than three years. “We have been lucky to be on this jour-
While at the helm of the organization, Advocate Aurora Health pared back ney under the leadership and expertise
he worked to increase eq- its CEO office from two to of both Kevin and Lloyd as they worked
uity in healthcare and re- one in 2019, slightly more side-by-side in the office of the CEO,”
duce health disparities. THE TAKEAWAY than a year after the or- she said. “We are confident that under
He was the founding chair ganization was formed Lloyd’s leadership we will be well-posi-
of the American Hospi- Kevin Lofton will through a merger, with tioned to transform how we deliver care
tal Association’s Equity of retire at the end Jim Skogsbergh emerging across the 21 states we serve.”
Care Initiative, which was of June. He has as sole CEO and Dr. Nick Lofton, who serves on the boards of
later joined by the Catholic served as co-CEO of Turkal leaving the organi- Gilead Sciences, Rite Aid Corp. and the
CommonSpirit since
Health Association, Asso- it was formed in the zation. The health system Georgia State University Foundation,
ciation of American Medi- February 2019 still maintains two head- earned a master’s of health adminis-
cal Colleges and America’s CHI-Dignity merger. quarters, however: one in tration from GSU’s Robinson College
Essential Hospitals. Milwaukee and another in of Business in Atlanta. l

January 27, 2020 | Modern Healthcare 15