With outgoing Vista Medical Center CEO Kim Needham moving into a consulting role and the background of new CEO Daily Rodriguez, who has worked with hospitals in working-class areas, Waukegan Mayor Sam Cunningham said he is cautiously optimistic about the future of the financially troubled hospital.
Needham, a 27-year employee of the hospital and longtime Waukegan resident, began her career at what was then Victory Memorial Hospital in 1999 as the director of respiratory care. Needham became the chief operating officer in 2009, and CEO nearly 16 months ago.
Rodriguez was hired as the CEO and chief nursing officer of Vista Medical Center East this week, according to a news release from Vista Health System issued Wednesday.
Since Los Angeles-area-based American Healthcare Systems (AHS) purchased Vista three years ago, Rodriguez has become the hospital’s fifth CEO. Needham was the fourth, taking the reins in April of last year. AHS bought Vista with the debt of its predecessor, Qurorum Health Corp.
Kevin Spiegel, Vista’s second CEO during AHS’s tenure in Waukegan and now the senior vice president of AHS, said in the release that Rodriguez has vast experience in healthcare organizations in diverse communities.
“Rodriguez is an accomplished healthcare executive whose leadership has guided hospitals through change while strengthening clinical operations, supporting care teams and expanding access to care,” he said.
Since the acquisition, red ink has continued as Vista decided to suspend its obstetrical and neonatal services in October. Earlier last year, 69 non-medical employees were furloughed and eventually laid off.
With Rodriguez’s experience and credentials, Cunningham said he sees a positive path forward but remains concerned because of AHS’s financial handling of the operation, including unpaid property taxes and other unmet obligations.
“While we recognize Ms. Rodriguez’s extensive clinical background and her stated commitments to transparency and accountability, leadership changes at the top do not erase corporate obligations to the people of Waukegan,” the mayor said Thursday.
AHS continues to owe more than $2 million in unpaid real estate taxes. First National Assets (FNA) purchased the 2003 taxes and petitioned Lake County Court for a tax deed earlier this year.
When Jack Reiter, the attorney for FNA appeared in court on July 10, he said FNA was in discussions with AHS. The case is set for its next hearing at 9 a.m. on Aug. 14 in Waukegan. Neither Reiter nor AHS CEO Michael Sarian could be reached for comment.
Cunningham, who has known Needham for years, said he was saddened to learn of her departure at a time when the hospital is dealing with the serious financial situation of Vista and AHS.
“Seeing her leave during these critical times is not ideal,” Cunningham said in an interview Wednesday.
Needham is not leaving Vista entirely. In an email to select community members on Monday, she said Rodriguez stepped into her role on Monday, and Needham is now working on a contract basis to help with the changes.
“I will be staying on in a contracted role to ensure a good transition and also continue working with the new billing company to get them fully running,” Needham said. “I will keep in touch with any future support I can give to the community and Vista.”
Vista did not respond to questions about the new billing system and how it will help the hospital.
In a social media post late Tuesday before Needham’s departure was made public, Cunningham said the financial woes of AHS were responsible for the “devastating blow” of Vista’s current economic condition, and he was “deeply disappointed.”
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“Healthcare is a fundamental right,” the mayor said. “For decades, Vista Medical Center East has served as a vital lifeline for emergency care, medical treatment, and employment for the people of Waukegan and broader Lake County.”
Cunningham said he has worked with city leadership, state legislators, regional healthcare leaders and community advocates “actively pursuing solutions, facilitating discussions, and exploring every possible path to keep this facility operating.” AHS continues to disappoint, he said.
Concerned about community members in need of medical care and the hundreds of Vista workers who strive to give the care people need, Cunningham said the employees, “deserve reliable, guaranteed compensation for their labor, not financial uncertainty.”
“Above all, local families and neighbors deserve accessible, dependable healthcare in their own backyard, because every resident’s health, safety and well-being depend on a healthcare system that puts people over profit,” he said.
For Cunningham, a Waukegan native, keeping Vista open and operating remains a high priority. He said he will work with others to “pursue every possible path to keep the facility open.”