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Board launches search for hospital CEO

Posted: Monday, June 10, 2002

Central Peninsula General Hospital will begin searching for a new chief executive officer, as time for its current interim administrator wanes.

The CPGH Inc. board of directors decided to start the search for a permanent replacement for interim administrator Jay Seigfreid, an employee of management consulting firm Quorum Health Resources whose contract expires in December.

Quorum entered into its agreement with CPGH Inc. in May 2001 after former administrator Martin Richman resigned earlier that month. CPGH Inc. is the nonprofit corporation that runs the Kenai Peninsula Borough-owned hospital.

Board president Diana Zirul estimated a search would take between three and six months and said this was the reason to begin looking.

"We felt that the timing was appropriate," she said.

Another consideration was the board's decision at the May board meeting to postpone the hospital's "Facility Master Plan," a needs assessment of all hospital-related facilities and a subsequent upgrade.

Funding for this plan was to come from a bond proposal that would have been on the borough election ballot this fall. But now, Zirul said this proposal will be pushed back until March or October 2003.

"Since the master plan is on hold, now is a good time to proceed with recruiting," she said.

The board will conduct its search using one of nine professional recruitment firms both it and Quorum have identified, said Debbie Honer, the hospital's human resources officer, at a special board meeting Thursday. She said the firms typically charge a one-time fee to enter into an agreement and, additionally, between 25 and 35 percent of the selected candidate's first-year salary.

At the special meeting, the board took a vote on a resolution authorizing funds for recruitment efforts. The resolution would allow the board's executive committee -- Zirul, vice president Steve Hoogland and secretary Charles Obendorf -- to select the recruitment firm and would specify a flat rate that this company would be paid. The amount of payment to the selected company still needed to be determined, however.

Board member Tom Boedeker made a motion to pay no more than $45,000 for initial services (before the percentage of the candidate's salary) and the board voted unanimously for this cap amount.

Zirul said she wanted to form a selection committee consisting everyone at the hospital who would be affected by the hiring of a new CEO.

"We want to actively involve the medical staff and key administrative staff in this process," she said.

Zirul said the job description would require some upgrading, changing it officially from administrator to CEO.

"There is some cleanup that needs to be done," she said. "It hasn't been updated since 1998."

The board anticipated having a recruitment firm selected and seeing candidates by July.

Marketing and public relations director Bonnie Nichols joked that the Alaska fishing season would be popular with those visiting to interview for the position.

"I bet you'll have lots of candidates in July," she said.



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