Wednesday, November 17, 2010

Aurora's Exec-Dump Is "Change"

Well, the guy "resigned."

Aurora Health Care paid Donald Nestor, its former chief operating officer, $8.2 million in salary, bonus and other compensation after his resignation in January 2009, according to the nonprofit health care systems' tax return.

Nestor, considered a key architect in Aurora's aggressive expansion over more than two decades, announced in October 2008 that he would retire at the end of that year. He was paid $2.2 million that year.

Nick Turkal, a physician and chief executive, disclosed the $8.2 million pay package in a message to employees.

"I signed the agreement which ended Don's employment with Aurora, as it was time to move forward with a new culture and new type of leadership," Turkal said in the message. "I believed then, and I know now, that it was the right thing to do for Aurora Health Care."

A change. Maybe putting up hospitals like McDonald's restaurants was beginning to burden the south-east corner of the balance sheet, where it says "long-term liabilities"?

Especially hospitals that aren't exactly drawing people by the zillions--like the one in Oconomowoc, where very little of the building's interior is lit up in the evening?

7 comments:

J. Strupp said...

"Maybe putting up hospitals like McDonald's restaurants was beginning to burden the south-east corner of the balance sheet, where it says "long-term liabilities"?"

Oh exactly!

I shake my head everytime I drive by that vast sea of unoccupied asphalt outside Aurora's Oconomowoc Hospital.

It could be worse though. That Wheaton hospital in Franklin off 27th is a complete waste. You might as well turn that place into a YMCA.

Deekaman said...

I don't particularly care what Aurora does as long as they suffer the consequences. They are far over-extended and made horrible decisions on capital expenditures, IMHO. If they go under, so be it.

GOR said...

I can recall a time when we had many more hospitals in Milwaukee (Deaconess, etc.) and the suburbs (New Berlin, for example) and they were progressively closed down because of the number of empty beds and financial unsustainability. I couldn’t understand Aurora’s thinking in building the one in Oconomowoc. It smacked of going after wealthy patients to boost income.

I understand Sinai, though subsidized, runs at a loss, is a drain on them and cannot be closed. While there may be some justification for the Grafton hospital (part of the deal in acquiring the adjacent medical practice, so there was an existing clientele), Oconomowoc made no sense and still doesn’t. So it was no surprise to learn they were moving about 40 staff from there to other locations.

Dad29 said...

You thought I was kidding about "McDonald's." I'm not.

They were going after ProHealthCare's market, just as they were going after StMary's market in Grafton (Port Washington) and after the Bellin market in Green Bay.

And (anecdotal evidence) they're now low-bidding against Wheaton for PPO work in metro Milwaukee. Tells me they have to jack up their volume a bit.

TMCPA said...

Good post / comments. And Turkal is no angel and ought to be fired over this (without golden parachute)!

RAG said...

The technological advances in medine cannot be dismissed.

That said, we all had more confidence in our health care when hospitals were run by nuns, adminstrators and physicians, not CEO's.

RAG said...

Medicine. I can't type tonight.