Cook County Health CEO Jay Shannon Leaving at Year’s End

Cook County Health (CCH) Board of Directors Meeting
November 22, 2019 

The vote by the Cook County Health Board to not renew CEO Shannon’s contract transpired after the Public portion of the Board meeting had adjourned and was reported by the media Friday afternoon November 22, 2019.  Chicago Sun Times, Crain’s Chicago Business and WBEZ, NPR News Station reported that the Board named Debra Carey, deputy CEO, as Interim CEO beginning Jan. 1, 2020 while the Hospital System searches for a permanent replacement.

Board Discussion 

• CountyCare members 318,196 which is below budgeted numbers, resulted in decreased revenue and decreased expenses, net contribution of $144 million vs budgeted $269 million to CCH.  Backlog of Medicaid applications of nearly 100,000 at the State Level is contributing to the lower enrollment.
• Medicaid enrollment has decreased by 15% countywide, a trend seen Statewide as well as nationally, attributed to fewer “navigators” assisting in enrollment of Medicaid individuals under the PPACA explained Kiamos of CountyCare.
• Net year end 2019 loss for CCH as a whole is projected at $156 million vs the budgeted loss of $180 million, which is a positive.
• Charity Care is projected to total $377 million and an additional $167 million in bad debt, severely stressing CCH finances.  CEO Shannon stated that this trend was unsustainable.
• Shannon noted that patients who come for elective services such as expensive MRI/CT take advantage of the free care and he suggested that the Board should consider implementing partial pre-payment prior to the service which is the policy at other hospitals.  
• CEO Shannon reported that the CCH 2020 budget had been approved by the Cook County Board. 
• New Provident Hospital update, $240 million budget ($205 million in bonds and $35 million in furniture and fixtures from CCH); groundbreaking Fall 2020, fully open for business end of 2023; 42 med-surgical and 6 ICU beds (vs currently staffed 25 beds and average daily census 13) 
• CCH research indicates the Provident service area is in need of surgical and specialty services and has a better payer mix than Stroger Hospital
• Director Thomas cautioned that the New Provident Hospital would be a difficult sell to the community as they had been told for years to use Stroger. He also warned that the University of Chicago would likely "dump" patients on Provident whenever they were on “bypass”.

Observed by:  Susan Kern, MD                                                                       Meeting Length:  3 hours