CEO Resigning from Bay Medical-Sacred Heart Health System - WMBB News 13 - The Panhandle's News Leader

CEO Resigning from Bay Medical-Sacred Heart Health System

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The Chef Executive Officer of Bay Medical -Sacred Heart Health System is leaving the job less than a year after the lease.

In a release sent by the hospital Monday, Steve Johnson says after 34 years in hospital administration he would like to pursue other opportunities.

Bay Med says during Johnson's tenure he achieved numerous milestones including the expansion of the emergency department, Level two trauma designation and the new tower.

Johnson's contract includes two years severance pay at just under $400,000 per year. If he finds another job, he will get the lessor of $250,000 or the balance of the severance.

Below is the release from Bay Medical-Sacred Heart:

Bay Medical‐Sacred Heart Announces CEO Resignation

Panama City, FL ‐‐ Bay Medical Center‐Sacred Heart Health System today announced the resignation of Chief Executive Officer Steve Johnson. Johnson says that after 34 years as a hospital administrator, he would like to pursue other opportunities such as healthcare consulting that will allow him to spend more time with his family.

"As CEO of Bay Medical Center since 2001, Steve has poured his heart and soul into this hospital," said Bay Medical‐Sacred Heart Board of Trustees Chairman Scott Clemons. "That dedication along with his skillful leadership has been essential to the hospital's success in our community while building a solid foundation for its continued excellence. We are deeply saddened by his decision, but respect his desire to make a career change and to spend more time with his family."

During Johnson's tenure, Bay Medical achieved numerous milestones including:

  • completion of the West Tower with an expanded emergency department, new surgical suites, new cardiac catheterization labs and a new cardiac intensive care unit
  • addition of the new patient tower with 144 new private rooms and new intensive care units
  • designation as one of America's 50 Best Hospitals for five consecutive years
  • designation of Level II Trauma status for Bay Medical's emergency department
  • recruitment of dozens of physicians representing numerous medical specialties
  • transition of Bay Medical into a partnership with Sacred Heart and LHP Hospital Group to achieve the benefits of belonging to a system and to retire the hospital's debt.

"It has been a privilege and a pleasure working with the employees, physicians, board members and volunteers of this organization, and I am very proud of all that we have accomplished together," said Johnson. "I feel that the hospital is well positioned for the future and has an outstanding management team in place, so I believe now is the right time for
me to move on to my next opportunity and for the organization to move on to the next chapter of leadership."

Sacred Heart Health System President and CEO Susan Davis said, "Steve has done a great job for Bay Medical and the community it serves. Under his leadership, Bay Medical became one of the nation's top‐rated hospitals for patient outcomes. His understanding of the changes in healthcare and his vision paved the way for Bay Medical to achieve longterm financial stability through a joint venture with Sacred Heart and LHP Hospital Group. He leaves a hospital that is
free of debt and better prepared to maintain its role as the leading provider of healthcare in Bay County."

LHP Division President Paul Kappelman said, "Steve and his team have been able to accomplish great things for this hospital and for the community. The driving force has been to do what is in the best interest of the patient and that is why Bay Medical‐Sacred Heart is a quality leader in our industry. We will be looking for that same kind of dedication and passion in our next CEO."

Bay Medical‐Sacred Heart will immediately begin a national search for a new CEO and says the selection process will be extremely collaborative, involving hospital leaders, community members, physicians, and other key constituents.

"We are committed to finding a candidate who is not only an industry leader in healthcare, but also is a good fit for the community," Kappelman said. "We want someone who has the same commitment to delivering the highest quality patient care and improving patient, employee and physician satisfaction. Steve has built an outstanding leadership team, so we anticipate a smooth transition."