Week Nine Takeaways
Date: December 31, 2024
Bear with us, as this week’s message covers a few weeks’ worth of content. It’s the holiday season and we’re balancing personal and professional lives, but we are here for the long game. We’re glad you’re still here too.
This week, we reflect on news of another interim leader, a credit ratings update and more physician leader conflict at OHSU. What we learn from the news only reinforces our doubts about whether OHSU has the right environment to successfully acquire Legacy Health. In deals like this, integration is like a pressure cooker - it will amplify both the positives and the challenges in irreversible ways. Without organizational resilience and adaptability, even the most capable leaders can’t influence the outcome.
OHSU recently announced a new interim CEO of OHSU Health, just three months before the proposed effective date to merge with Legacy and 12 months after the former CEO announced his resignation. It is unclear how a government-run system can effectively manage a workforce of twice its size when key leadership positions are held by interim leaders. The uncertainty surrounding how integration planning decisions will evolve once permanent leaders are appointed - especially with the impact of a new political administration - only adds to the unknown.
While Legacy saw a reaffirmation of their rating earlier this month, OHSU’s rating moved in the wrong direction. S&P Global Ratings lowered OHSU’s rating to A+ from AA-, citing a multiyear trend of operating losses and a larger-than-expected operating loss in fiscal 2024. Relative to debt, the outlook is stable. In the same light, what would the current state at OHSU say about their outlook in leadership and culture? It is these projections that tell us whether the organization is positioned to address the broader challenges associated with integration.
Week after week, OHSU physician leaders are reporting conflicts with the organization. Shortly after Dr. Druker’s resignation as CEO of Knight Cancer Institute, the former head of Knight Cardiovascular Institute filed a complaint alleging that OHSU violated Oregon employment law and age discrimination laws. If their leading researchers and physicians continue to speak out, it raises concerns about the widening gap between OHSU’s top leadership and staff.
Taking care of our people is a prerequisite to taking care of our communities. OHSU ranks among the worst in the country for employees’ confidence in leadership. This disconnect, coupled with their series of short-term leadership changes, could undermine morale and delay the long-term vision of the combined workforce. If we don’t hear that restoring trust and confidence among staff is the most important problem to solve, the current environment will become significantly more unstable during integration.
Thank you for all your feedback and support this year. Let’s maintain that energy into the new year and make sure everyone’s voices are heard. See you in 2025!
Week Nine News: