University Hospital Can Be ‘Pride Of Newark,’ New CEO Says

NEWARK, NJ — An embattled public hospital in Newark has recruited the state health commissioner as its new president and CEO.

On Wednesday, the board of directors at University Hospital appointed Shereef Elnahal to the medical center’s top administrative post. (Read their resolution here)

Elnahal will replace interim president and CEO Judy Persichilli on July 15. Persichilli has served in the role on an interim basis since December 2018, according to a hospital statement.

Elnahal’s appointment comes less than a year after the departure of former CEO John Kastanis, who resigned amid repeated calls for shakeups at the facility. University Hospital has underperformed on several of its latest Leapfrog Group ratings, and recently saw several infants contract a bacterial infection while in the care of the hospital's NICU.

• See related article: CEO At Beleaguered Newark Hospital Resigns Amid Outcry
• See related article: Newark Hospital Gave CEO Raise As Finances, Ratings Sank

Elnahal had a message of hope for those who are still dubious about operations at the busy hospital, which serves an estimated 17,000 inpatients and 250,000 outpatients in its campus-based clinics each year.

“At University Hospital, I pledge to continue my service to New Jersey by executing on a vision that makes it an institution of trust again for its community,” Elnahal said. “University Hospital can be the pride of Newark. Its health care, community, and academic missions can carry it forward into excellence. That is my promise to patients, employees, and the surrounding community.”

Elnahal said that he considers it an honor to have served in the administration of Gov. Phil Murphy, where he has been acting as health commissioner since April 2018.

“It is now my privilege to transition into serving the state’s only public hospital and its community,” Elnahal said.

“It has been a privilege to work with the board as we reimagine the future of University Hospital,” Persichilli said as she prepares to pass the torch. “I am excited to pass this role to Dr. Elnahal and believe he is an extraordinary candidate to serve as the next president and CEO.”

Tanya Freeman, University Hospital board chair, said that the board is “delighted” to welcome Elnahal.

“We are confident that his strong leadership and creativity will be the driving force necessary to continue the momentum we have begun to develop over the last several months as we craft a strategic plan for the future,” Freeman said.

“The board is also deeply grateful to the selfless work of Judy Persichilli during this transition period,” Freeman added. “She has brought a culture of transparency and gratitude to the leadership team that is felt by our patients, employees and community.”

University Hospital provided the following background information about Elnahal:

“Dr. Elnahal is currently the Commissioner of the New Jersey Department of Health, where he leads over 4,000 employees and is responsible for all public health matters impacting New Jersey’s nearly 9 million residents. A graduate of Johns Hopkins University who earned his medical degree from Harvard Medical School and a Master’s in Business Administration from Harvard Business School, Dr. Elnahal is a licensed physician who has devoted his professional career to improving the quality, safety and reliability of healthcare across all disciplines. Dr. Elnahal previously served as the Assistant Deputy Under Secretary for Health at the U.S. Department of Veterans Affairs under President Obama. He also served as an Adjunct Professor of Health Policy and Management at Georgetown University.”

UNIVERSITY HOSPITAL: ‘IN A UNIQUE POSITION’

In December of 2018, at the request of Gov. Phil Murphy, the New Jersey Department of Health released a 38-page report that cites a need for an overall shakeup at University Hospital. (Read the full report here)

The report notes University Hospital is "an indispensable asset to the vulnerable populations of Newark and the surrounding community."

According to the report, the hospital:

• Serves 17,000 inpatients and 250,000 outpatients in its campus-based clinics each year
• Employs 3,300 staff
• Has a $670 million budget

In addition:

• Two-thirds of its patient revenues are Medicaid, charity care or self-pay, giving it the lowest percentage of commercially insured patients in the state.
• It serves as a Level 1 Trauma Center
• It is one of only two hospitals in the state performing liver transplants

According to the report, University Hospital receives more than $150 million a year from the state for charity care, Graduate Medical Education, mental health and reimbursement for employee pension expenses and fringe benefits.

"University Hospital is in a unique position among all acute care hospitals in New Jersey," the report states. "By the Newark 1968 Agreements and New Jersey Restructuring Act its position as an acute care academic medical center, with state support, is codified. During a time of radical change in healthcare while many hospitals are struggling with future sustainability, the state of New Jersey has assured University Hospital that it has an invaluable role in serving the healthcare needs of Newark and the surrounding community. It has been five years since the separation and University Hospital has not leveraged its unique position to focus on developing a culture of high performance."

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