CEO At Beleaguered Newark Hospital Resigns Amid Outcry

NEWARK, NJ — The president and CEO of University Hospital in Newark will be stepping down on Dec. 14, administrators announced Thursday.

John Kastanis’ departure from the helm of the beleaguered hospital comes after repeated calls for shakeups at the facility, which has underperformed on several Leapfrog Group ratings and recently saw three infants contract a bacterial infection and die after receiving care.

Kastanis will return to his urban teaching hospital and healthcare system consulting practice, University Hospital administrators stated.

“We appreciate John’s service at University Hospital and wish him well as he begins this next chapter of his career,” Board Chair Tanya Freeman said. “The board will continue to work with the leadership team to drive sustainable change at the hospital.”

Kastanis said that he was proud to have “built a talented leadership team” at the hospital.

“Those of us in the building, regardless of position, know that we have started to see improvements that will benefit our community’s healthcare and position us for the future,” Kastanis said. “As the state-sponsored Level 1 Trauma Center, we are well aware of the special role we play.”

NICU OUTBREAK AND LEAPFROG RATINGS

In November, state health officials revealed that a pair of premature infants died after contracting a bacterial infection in the hospital’s neonatal intensive care unit. A third baby passed away in September after catching the same bacteria at the hospital.

Due to other medical conditions related to being born premature, the bacterial infection may not have been the cause of death, New Jersey Department of Health officials said.

• See related article: 3 Babies Die After Bacterial Outbreak At Newark Hospital

Despite the unclear role of the bacteria in the infants' deaths, Newark Mayor Ras Baraka issued a scathing statement in reaction to the announcement, calling the fatalities "stark reminders that an overhaul of the quality of care and the leadership of the hospital is urgently needed."

Baraka wrote:

“The hospital is central to providing health care to Newark residents, and I have been very concerned about its quality of care, its leadership's failure to live up to the Newark Agreement negotiated when the hospital was created, their insensitivity to the opinions of residents, their attempt to reduce the number of pediatric beds without consulting myself or the governor, and the failing grade they received on their level of care from the Leapfrog Group… The time has come for the State of New Jersey and the Newark community to collaborate in setting a new direction for University Hospital.”

It’s a stance that Gov. Phil Murphy also took in July after University Hospital received an “F” grade as part of the bi-annual Leapfrog Group report, a nationwide hospital safety analysis for local health facilities.

• See related article: Here's What Gov. Murphy Is Doing To Fix NJ's 'Failing' Hospital

Following the “F” grade in April, Murphy signed an executive order directing the state health commissioner to install a monitor to review expenditures and assess the level of care provided at University Hospital.

The hospital also had its bond rating downgraded four notches because of financial difficulties, state officials said.

"Given the scope of the problems found at University Hospital, these immediate actions are necessary to ensure the facility can continue providing the highest level of care to the community while it gets its fiscal house in order and improves its health care quality,'' Murphy said.

Kastanis previously provided the following statement in response to Murphy’s charges:

“In the last several years, University Hospital has taken a variety of steps to address financial challenges while providing access to high-quality care for all patients. The hospital has made changes to its administrative and clinical leadership, and diligently implemented new programs focused on patient safety and quality of care. We recognize there is much work left to be done and look forward to working collaboratively with Ms. Persichilli, as well as our state and local elected officials and regulatory agencies, to accelerate progress at University Hospital.”

According to state officials, the hospital also attempted to dramatically reduce the number of early pregnancy beds on site and transfer those services to Newark Beth Israel Medical Center. These "unauthorized steps" allegedly jeopardized care for pediatric patients and threatened the hospital's ability to provide essential health care services for surrounding communities.

• See related article: Newark Hospital No Longer Plans To Outsource Pediatrics

University Hospital is one of three Level I trauma centers in the state. In the FY19 budget, the hospital will receive more than $43.3 million based on the number of state funded staff, which is more than 2,900 employees. It receives another $10 million for a self-insurance Reserve Fund.

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Photo: Shutterstock

With previous reporting by Tom Davis