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Jim Citrin Leadership by Example

Jim Citrin, Leadership by Example

A CEO's Commitment to a Battered City

by Jim Citrin

Excellent (44 Ratings)
4.022728/5
Posted on Tuesday, August 7, 2007, 12:00AM

In 2006, Bill Gates was at the top of Modern Healthcare magazine's annual survey of the 100 Most Powerful People in Healthcare, in recognition of his innovative work through the Bill and Melinda Gates Foundation.

This year, a lesser-known executive received a similar honor in a related annual ranking by the magazine: For his leadership during and after Hurricane Katrina, Dr. Patrick J. Quinlan, CEO of New Orleans-based Ochsner Health System, was named the Most Powerful Physician Executive.

A Commitment to Help

In the tragic aftermath of Katrina, Ochsner (pronounced "ox-ner") was and remains a bright spot. Dr. Quinlan and Ochsner's employees provided uninterrupted service during the hurricane, and in the 24 months since the organization has played a key role in the recovery of the New Orleans medical community and economy.

Ochsner Medical Center, located in Jefferson Parish, was one of only three hospitals to keep its doors open both during and after Katrina, despite the devastating conditions of the storm and the floods unleashed by breached levees. Not only did Ochsner continue to care for all its own patients, it also opened its doors to anyone in need.

Today, Ochsner -- the largest private employer in the state of Louisiana -- is repeatedly ranked as one of the best U.S. hospitals by various publications, including U.S. News and World Report. Ochsner is an independent nonprofit organization made up of 7 hospitals and 32 clinics employing over 9,000 people, including over 600 physicians in 80 medical specialties, generating $1.1 billion in net patient revenues.

Ochsner's performance-oriented culture, disaster preparation, and unique institutional history helped Dr. Quinlan keep the organization focused and operating during Katrina, and allow it to fulfill its commitment to helping the battered region recover from the storm.

Local Pioneers

In 1939, Alton Ochsner, director of surgery at the Tulane University School of Medicine, earned his place in medical history with his discovery of the link between tobacco and lung cancer. An innovator who was frustrated with the disjointed nature of medical care, Ochsner wanted to pioneer the kind of group practice exemplified by the renowned Mayo Clinic in Rochester, Minn. for New Orleans.

So, in 1940, Ochsner and four colleagues on the Tulane faculty began planning a clinic where they could integrate their combined expertise and apply it to the most complex cases. They approached Tulane about hosting the clinic, but not only did the school's dean rebuff them, they were socially ostracized as "traitors to the medical profession" for establishing a for-profit venture.

The five founders forged ahead with plans for a private clinic, which opened in January 1942. The original clinic had gained enough traction by January 1944 that the founders were able to establish a nonprofit foundation dedicated to research, education, and the treatment of patients who couldn't afford private medical care.

The Ochsner specialists continued to operate the clinic as a for-profit enterprise, and they poured their earnings into the foundation to establish and subsidize a hospital. The hospital opened in June 1954, and it's never stopped growing. Today, it's matured into the sprawling Ochsner Health System, with holdings that include seven hospitals and over two dozen neighborhood clinics.

A Culture of Preparedness

When I interviewed Dr. Quinlan recently, he described how Ochsner's preparation and culture enabled the organization to perform when it counted most. "Our team turned out to be nimble in making decisions and solving problems during the crisis," he says. "Katrina wasn't the first time we prepared. Hurricanes are a part of life here, and we've practiced for disaster recovery as a team.

"You don't know when or how often the hurricanes will come or how bad they'll be when they get here," Quinlan adds. "But you do know that they're coming. So we've prepared through planning and drills. In my opinion, the hallmark of a good plan is that it's linked to action. If you don't practice, you don't have a plan."

Dr. Quinlan stresses that it's the job of management to support the decision-making of employees on the frontlines. "Fear robs people of their ability to make decisions," he said. "If they feel they'll get in trouble, people will avoid making decisions, leading to inaction. But at Ochsner, whatever we do has a common path. There are no recriminations.

"When the crunch time came [during Katrina]," he continues, "our people exercised calm courage and selfless behavior. They saw problems and owned them. Their attitude was, 'We're just doing our jobs,' and 'What can I do to help?'" What did Dr. Quinlan himself do to help? For one thing, he led from the front. "You have to be there with your people. I stayed in the office for seven weeks straight."

Renewing an Investment in New Orleans

Ochsner recently announced the purchase of three New Orleans hospitals from Tenet Healthcare Corporation for $55 million.

When Tenet made its intention to pull out of the New Orleans market public, it seemed to signal another nail in the coffin for the city's economic recovery. But Ochsner's purchase improved the outlook for health care in the area, and is seen as a local institution's renewed confidence in the region.

Quinlan's decision to increase Ochsner's holdings when Tenet was going the other way reflects the company's focus and purpose. As he put it, "New Orleans is our home. We have no other interests or options. We have a local knowledge and local focus that Tenet -- a national system -- doesn't.

"We're a part of the community," he concludes. "The future of New Orleans is our own future."

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12 Comments

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  • Yahoo! Finance User - Wednesday, August 8, 2007, 7:55PM ET  Report Abuse

    • Overall: 5/5

    Too bad we don't we don't have the same quality of people in Congress. Perhaps term limits would attract some people whose first priority was serving Americans, as opposed to feeding at the taxpayer trough year after year and decade after decade.

  • Yahoo! Finance User - Wednesday, August 8, 2007, 6:13PM ET  Report Abuse

    • Overall: 5/5

    I have been a patient of the Oschner Health System for over 30 years. So, you know that I am personally satisfied with their care. The New Orleans area is in dire need of hospitals, nurses, and doctors, Thank God that Ochsner stood to help this area.

  • ocavalanche - Wednesday, August 8, 2007, 5:56PM ET  Report Abuse

    • Overall: 5/5

    Where once I was blind, now I can see. Having been through the aftermath of Katrina in New Orleans twice now, I can say there is something beautiful, special and romantic about that city which inescapably gets into your blood. While I have some of the same questions and concerns mentioned about building homes below sea level, those are things I cannot answer. This is why we elect our politicians. Only know there are people who are constantly working their tales off down there and need every bit of help they can get. Perhaps if those who spew so much venomous rhetoric got out of their office chairs (or high chairs) and did some work, maybe NO would be in a better situation than that which it currently finds itself in. About the article itself, nice to see a corporation doing right by its citizens while still turning a profit. And for those of you've never been to NO, try the beniets with cold chocolate milk. Like heaven in the mouth.

  • tigerman - Wednesday, August 8, 2007, 4:04PM ET  Report Abuse

    • Overall: 5/5

    I cannot believe the hateful comments made about those of us who live in the New Orleans area. Calling us lazy, fools, and whatever insulting terms is of no use and does no good. You do no know me or my neighbors to even make such a comment. We are very hard working are not sitting on our butts doing nothing but whining. I cannot leave if I wanted to and FEMA the State and other agencies have made it where I have to rebuild where I am at, unless I want to lose what very little I have left. We are down here working our rearends off to only have to fight insurance companies and our own governments. I am finding that those who attack us for no reason must be making the comments based on race, although I am white, am upper middle class. There majority of the people that some of these posters are obviuosly talking about do not live here anymore! Seattle - Earthquakes, Volcanoes, Omaha - Tornados (worse than in Louisiana), Lived near Greensboro for 9 years, I prefer Louisiana, Houston - another Flood Plain with many below sea level areas. I would not wish what I have been through on anyone, however I am beginning to change that attitude. The more hate I hear directed at us and now watching natural disaters occur in other places I am not so compassionate anymore. You ought to thank god that you are apparently fortunate enough to have not endured what I have gone through. But if you should lose everything you hvae through no fault of your own, I hope you are shown the lack of compassion you have. Without the northern Gulf Coast, especially New Orleans and South Louisiana about 75% of the people in this country would have to change their way of life in one form or another. Remember the increase in gas prices? New Orleans is also one of the largest ports in the US., usually ranking 1 or 2 (gross tonnage). Most of your food, energy supplies (oil, gas, coal), Chemicals that you use at work or around your home either pass through here or are manufactured in this area. We are the number one port for coffee and steel. Many medical break throughs were discovered and developed in New Orleans and we are working hard to get that back again and even better than before. Unfortunately we used to have a lot of poor who lived here, but they had access to good healthcare and could afford to live in homes. That is gone now. The bottom line is we need you, and realize that, but what many fail to realize is you need us also. I have lived in several different places and they tend to either try to immitate what we do, or take what we have. We are being treated in a similar fashion as after the Civil War. The FBI has made many many arrest for theft, corruption, and the like, and in just about every single case 95% I would conservatively estimate, are not from Louisiana or Mississippi. I know I am all over the place with this, but there is no easy answer. I just cannot stand it when we are called lazy, fools and sometimes worse by people who do not live here, do not know me or my fellow citizens in South Louisiana or Mississippi. Unfortunately these comments show who really are the foolish people.

  • Yahoo! Finance User - Wednesday, August 8, 2007, 3:08PM ET  Report Abuse

    • Overall: 1/5

    The various project being proposed are 99% pork...It was all in last week's Time magazine. Stop trying to conflate the areas of New Orleans and the barrier islands which are below sea level will be at the current rate of land loss with the entire "gulf coast". Katrina was NOT the big one. It is the height of stupidity and foolishness to rebuild. Pointing fingers at others and saying that "one day this will happen to you" is nonsensical and doesn't change the fact that building your home in a bowl is just plain shortsighted. Here's an idea: MOVE ON. There are so many opportunities in so many places...and by the way, people have been told not to build on hillsides prone to mudslides and fires...they've been told not to build on barrier islands that are subject to the ebb and flow of tides that can wash them away. They've been told not to build on fault lines...but they have. Apparently, common sense is not so common. Enough! America has New Orleans Fatigue for good reason. New Orleans is in a hole and that hold is actually getting deeper and deeper. Maybe a place like Seattle, or Omaha, or Greensboro or Houston just might be a better place to build your dream house. Why is that such a difficult concept? Many of us have experienced all kinds of hardships, disasters and unforseen consequences...have had to leave our homes and couldn't go back. The ONLY help should go to people who are invalids or paralyzed, etc, and even they should be relocated for obvious reasons. If I have to read one more article explaining why grown men and women can't get off their butts and move on with their lives in another city, I'm going to scream. And please, no lectures -- I've seen plenty of people in serious distress and reached out to help them. Most of what I'm seeing in New Orleans is finger-pointing, whining, laziness, and a refusal to "get on with it" and own up to one's own responsibilities. I'm sorry your hometown is changed forever, but it is. Get over it.

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