Intercom Online......December 2, 1999

Hershey to again be managed by the University

In a meeting in Wilkes-Barre on Nov. 18, the Board of Directors of the Penn State Geisinger Health System voted unanimously to restructure the relationship between Penn State and the former Geisinger Health System. The two entities have started the process of unwinding the 1997 merger that created the Penn State Geisinger Health System.

Over the next several months, officials from Penn State and Geisinger will implement separate plans to address their own goals and the needs of the patients who live in their service areas. Both Penn State's Milton S. Hershey Medical Center and the Geisinger Health System will continue an affiliation in a number of areas and explore ways the two organizations can best work together in the future to serve patients.

The merger of the two institutions, announced in January 1997, has required enormous energy to grapple with huge changes taking place in health care, while at the same time balancing the needs and goals of the two different organizations, according to officials.

"The health care industry has been going through enormous changes across the country. Finding ways to provide the very best in patient care is what prompted Penn State and Geisinger to originally explore a partnership," said Graham B. Spanier, president of Penn State. "We have worked together to try to find the hershey best way to meet the needs of our patients, and we realize that both institutions can reach that goal better by collaborating on some things, but not on everything."

The Hershey Medical Center has a long history of advanced patient care, academic medicine, world-class research and community service -- all with the substantial resources of Penn State and collaboration throughout the University.

"Hershey's future will follow this legacy," Spanier said. "We have concluded that a medical enterprise tied closely to the larger University is in the best interests of our patients, our employees and the communities we serve."

Similarly, the separation of the institutions leaves the Geisinger group in a better position to fulfill its own interests independently.

The Hershey Medical Center is composed of Penn State's College of Medicine, a large medical center, children's hospital, rehabilitation hospital, and affiliate clinics and enterprises throughout central Pennsylvania. In addition, the Hershey Medical Center and Penn State's College of Medicine, in collaboration with the rest of Penn State, form one of the nation's largest research enterprises. Penn State researchers conducted nearly $400 million worth of research in fiscal 1999. The Hershey Medical Center is home to about 6,500 employees, including part-time workers.

"I want to thank those Penn State employees, and the staff at the Hershey Medical Center, who have worked so hard during the past few years to provide patients with the very best of care," Spanier said. "They also have kept Penn State at the forefront of medical research. Their dedication and professionalism has helped us through the most difficult period in the history of the medical profession and its teaching hospitals and will ensure that the Hershey Medical Center remains a national leader in research and care."

As part of the announcement, Steve Garban was appointed consultant to the president for the next several months to coordinate Penn State's overall efforts to reestablish the University's independent medical enterprise. Garban serves on Penn State's Board of Trustees and previously held the position of senior vice president for business and finance at the University. He will serve in this role as a volunteer. Garban also serves on the board of the Penn State Geisinger Health System.

The new governance arrangements between the health system and Penn State will take effect immediately, but numerous details of this new relationship will have to be ironed out in the coming months.

"We at Penn State envision many opportunities for future collaboration with Geisinger," said Ted Junker, chairman of Penn State's Board of Trustees and a member of the Penn State Geisinger Health System Board. "Both organizations have worked hard, in the midst of national financial pressures, to build a stronger system.

"It became clear to all of us in recent months that each institution has special goals and opportunities and we can better take advantage of them individually," Junker said.

Dr. C. McCollister Evarts will continue to serve as senior vice president for health affairs, CEO of The Milton S. Hershey Medical Center and dean of the College of Medicine at Penn State until his retirement June 30, 2000. A national search for his successor has been launched.

For more information about the announcement or information on the financial crisis facing teaching hospitals, visit the Web at http://www.psu.edu/ur/hershey/.

Penn State will continue to offer the
Penn State Geisinger Health System
plans to faculty and staff.

With recent developments involving the untangling of the 1997 merger of Penn State and the former Geisinger Health System, a number of faculty and staff have raised questions concerning the Penn State Geisinger health plans, especially since Nov. 23 was the announced closing date for Penn State's benefit enrollment period for 2000.

Penn State will continue to offer the Penn State Geisinger Health System (PSGHS) plans to Penn State faculty and staff.

Employees who were unable to make a decision on a health care option by Nov. 23 should have returned all other material by that date and should submit a decision on the health care plan as soon as possible. It is important for employees to make a selection by Dec. 15. If the extended date still poses a problem, employees should alert the University's employee benefits staff.

Confirmation statements automatically sent to employees will reflect the information that the benefits staff had in hand at the close of the normal enrollment period.

If a choice on an employee's health plan was not made by Nov. 23, the confirmation statement may not reflect a change in the employee's plan.

Those who make a change after Nov. 23 will receive a follow-up confirmation statement at their home address of record the first week of January.

Faculty and staff who would like to discuss their health plan options should contact a University benefits staff member by sending e-mail to bene@psu.edu or calling (814) 865-1473.

For information about the unwinding of the Penn State Geisinger Health System merger, check the Web at http://www.psu.edu/ur/hershey/.

Search committee named to find new
head of medical center and College of Medicine

A 13-member search committee has been formed to identify candidates to fill the position of senior vice president for health affairs, dean of the College of Medicine and chief executive officer of The Milton S. Hershey Medical Center. The committee will recommend individuals to University President Graham B. Spanier to fill the position currently held by Dr. C. McCollister Evarts, who will retire on June 30, 2000.

Dr. Julien F. Biebuyck, senior associate dean for academic affairs in the College of Medicine, will chair the committee. Dr. John H. Moxley, managing director for health affairs of the executive search firm of Korn/Ferry International, will assist in the search process.

Other committee members are: Dr. Arthur Abt, professor and chair of pathology; Dr. Kevin Black, associate professor of orthopedic surgery; Judith Bond, processor and chair of biochemistry and molecular biology; Dr. Peter W. Dillon, associate professor of surgery/pediatrics; Lesley Jaye Gaydos, student in the College of Medicine; Dr. John Goldman, professor of infectious diseases and epidemiology; Dr. Harold Harvey, professor of oncology; Janis Jacobs, vice president for administration; Ralph Norgren, president, College of Medicine faculty organization and professor of behavioral science; Eva J Pell, interim vice president for research and dean of The Graduate School; Dr. Mark J. Young, Leonard Parker Pool chair, Community Health and Health Studies, Lehigh Valley, and professor and chair, Health Evaluation Sciences; and Wayne Zolko, associate vice president for finance and business.

Candidates for this position should have proven scholarship and accomplishment in a medical sciences discipline and professional accomplishments that qualify for a professorship; a broad understanding of academic institutions, health centers and teaching hospitals; proven leadership abilities; commitment to the philosophy and responsibilities of a major, public research university; understanding and support for the University's multiple missions and its commitment to cultural diversity; evidence of experience in fiscal management; fundraising experience; and the ability to attract human and financial resources to the University.

Full consideration will be given to candidates who come to the committee's attention by Feb. 25, 2000. Nominations or letters of application accompanied by a curriculum vitae, and the names, addresses, phone numbers and e-mail addresses of four references should be mailed to: Dr. Biebuyck, chair, search committee for senior vice president for health affairs, dean of the College of Medicine, and CEO, 201 Old Main, University Park, Pa. 16802.

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