Intercom Online......September 30, 1999

Penn State Geisinger to reorganize
following study of current health system

The board that oversees the Penn State Geisinger Health System has formed a committee to review the system's organizational structure, governance and leadership and to recommend changes to ensure the system's continued viability.

Officials announced late on Sept. 20 that two top health system executives, Drs. C. McCollister Evarts and Stuart Heydt, would retire. Evarts, 68, will retire as president and chief academic officer for the Penn State Geisinger Health System this month. He will end his tenure as senior vice president for health affairs and dean of the College of Medicine at Hershey on June 30, 2000. Evarts has been with the College of Medicine since 1987 and had discussed retirement last year, but was asked by University President Graham B. Spanier to stay on for another year and continue to oversee operations (see "Parting" story in Sept. 23 issue of Intercom).

Heydt, 59, Penn State Geisinger's president and chief executive officer, gave no exact date of his departure.

A national search for both positions will be undertaken. Heydt's departure is expected to coincide with the conclusion of the committee's work that will look at all aspects of the system's organization, from health care delivery to medical education and research. The structural and organizational issues should not impact the day-to-day delivery of care throughout the Penn State Geisinger Health System, including its health plan and numerous Penn State Geisinger Health Group physician offices throughout central and northeastern Pennsylvania, according to Frank Henry, chairman of the board of directors.

"Since the system's creation in 1997, general economic realities in health care have changed substantially," Henry said. "They (Evarts and Heydt) have built a strong foundation, but the economic realities of health care delivery in an increasingly competitive and cost-conscious world have brought us to a new plane."

The Penn State Geisinger Health System was formed in June 1997 through a merger of Penn State's Milton S. Hershey Medical Center, which includes the College of Medicine, and Geisinger Health System in Danville. The announcement of the review of the system's organizational structure is part of Penn State Geisinger's continuing efforts to position itself for the future

"We've taken on a major performance improvement program called APEX that demands that we evaluate all aspects of our organization. APEX will ensure that we are a fiscally sound, market-savvy and dynamic service organization," Henry said. "These changes will allow us to grow as a unified system, continue to provide patients with superior and compassionate health services and support our academic and community service activities."

The health system includes The Milton S. Hershey Medical Center in Hershey, Geisinger Medical Center in Danville, the Penn State Geisinger Wyoming Valley Medical Center in Wilkes-Barre, the Marworth Alcohol and Chemical Dependency Treatment Center in Waverly, the Penn State Geisinger Health Plan and numerous Penn State Geisinger Health Group physician offices throughout central and northeastern Pennsylvania.

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