Hospital out of third-party clause

Mar 8th, 2013 | By | Category: News

During his update for the St. Bernard Parish Council, hospital board chairman Wayne Landry announced that the St. Bernard Parish Hospital can officially start its search for a new CEO as they are no longer required to have a third-party manager.

Landry said that the board would ideally like to hire a head hunting firm to perform a regional search for a hospital CEO, in which they would select the top 3 candidates, and the board would choose from their selections.

“We’re hoping to have a new CEO in between 60 and 90 days,” said Landry.

Originally, Goldman Sachs, one of the hospital’s main financiers, had an agreement with the hospital board that the SBPH would be run by a third-party manager. That posed a problem last fall when the selected third party management company, Franciscan Missionaries of Our Lady Health System, pulled out of
its management agreement.

Since FMOL’s unexpected departure, Landry has been acting as interim CEO– a move that the council and administration were worried could be viewed as unethical. During the last few months the board has been working to get out of that third-party management clause, and Goldman Sachs has been evaluating the hospital’s performance to determine whether or not the facility could operate without a third-party.

During Tuesday night’s council meeting, Landry said that he was given a verbal confirmation of the recent agreement change over the phone, and is waiting on a formal letter from Goldman Sach’s outlining the agreement’s revisions.

“We’re in a much better place financially than anyone thought; we’re at $9 million cash balance right now,” said Landry. “They [Goldman Sachs] said things we’ve been doing are brilliant.”

After councilman Guy McInnis asked whether Landry would be relinquishing his CEO duties and returning to his original role as the hospital board chairman only, Landry said that he “might step down altogether.”

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