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Category: Front Page News Front Page News
Published: 29 October 2014 29 October 2014

Some of the GRMC caregivers and personnel involved in the financial turn-around are from left, Liz Martin, R.N, Mike Martin, Senior Telecommunications Specialist, Brian Cunningham, CEO


Brian Cunningham, CEO at Gila Regional Medical Center (GRMC) announced at the October Board of Trustees meeting that the State approved audited financials for Fiscal year 2014 demonstrated that, in less than 11 months, GRMC had achieved an extraordinary financial turn-around.

"At the end of fiscal year 2013, as all of you know, Gila Regional was hemorrhaging financially to the tune of a $9 million negative bottom line and our entire senior leadership team had resigned," Cunningham said. "And now, the State Auditor's Office confirmed that the by the end of fiscal year 2014, GRMC had achieved a positive $1.2 million bottom line. That is a $10 million turn-around in less than 11 months. "This is really extraordinary, unprecedented work," Cunningham added.

Cunningham then stated, "And this turn-around was no accident. It was the direct result of the effort and support of our Board of Trustees, our County Commissioners, our medical practitioners, our community and, of course, the incredible caregivers at GRMC. Because of our strong commitment to our communities and our caregivers, we put together a comprehensive turn-around plan and implemented it with a sense of great urgency."

The turn-around began with a focus on people first. The 68 caregivers, whose hours were cut in half by the previous administration, were addressed immediately, with most caregivers returning to full-time status. The next major issue needing to be addressed was the leadership culture itself at GRMC. Cunningham brought all of GRMC's 40-plus leaders into a room to identify the major issues that led to GRMC's troubles at the end of fiscal year 2013, and it was the leaders themselves that identified "leadership" as the root cause of their problems. This triggered the development of an expanded set of leadership values and expectations and a series of innovative, internally developed leadership trainings that continue to this day.

With this foundation, GRMC then turned towards addressing the systems and processes that would be necessary to effect the turn-around. Structures were rapidly developed and implemented to ensure that the right projects were sanctioned and accountability with these efforts was placed front-and-center. A major focus of this phase of the work was on improving the quality and operational efficiencies of many of GRMC's key systems and processes. During this phase, the hospital's overall quality scores increased and additionally, GRMC posted some impressive caregiver engagement scores.

"Mr. Cunningham and his team took this place when it was a mess and in financial ruin. In eleven short months they performed a miracle through hard work and a highly intelligent and caring workforce. I am so proud. This is a rare achievement. Miracles happen every day but this was a biggie," Charles Kelley, Chairman of the GRMC Board of Trustees, said.

Many hospitals and other health care institutions have been experiencing significant financial challenges over the past several years. And although there is still much more work to be done, GRMC is clearly on the right track towards not just surviving but thriving in the most challenging healthcare environment in modern history.