We continue our Steward Healthcare discussion with Ellen Zane, former CEO of Tufts Medical Center in Boston. It begins with 8 struggling nonprofit Caritas Christi hospitals in Boston. A competent physician is hired as the new CEO, but he has no prior executive management experience. Financial struggles continue despite the hospital’s sale to private equity firm Cerberus Capital. Steward is now a for-profit entitywhich puts additional demands on cash flow. A sale of physical assets provides cash for expansion rather than ongoing operations.

• The Wrong CEO
• Dubious Due Diligence
• Nonprofit Becomes For-Profit
• Property Taxes & Management Fees
• The Goal Becomes Expansion

Dan Daly discusses the crisis at Steward Healthcare with Ellen Zane. Ellen is the former CEO of Tufts Medical Center, a significant Boston facility with 6000 employees and 1000 doctors. Ellen currently serves as a dirctor on a variety of boards both public and private. In this session, they assess the current status of Steward from an operational and financial standpoint severely impacting patient care.

• Cash Flow, the Initial Problem
• Inadequate Vetting of Buyers
• Unsatisfactory Government Oversight
• Fiduciary Abdication by Boards

Dan Daly and Willow Shire close out our series discussing how a change in culture can impact the mission sometimes in a disastrous way. They begin discussing an example of an uplifting corporate culture at retailer TJX, and then analyze the crisis cases at Boeing and Harvard College.

• Culture Must Support Your Mission
• Culture Starts at the Top
• Mission and Culture Reviewed Annually
• Honesty & Reality Absolute Requirements
• Momentum Changes Unacceptable to Either