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PROFILE
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Man With
A Plan
By Pam Droog
Phillip S. Schaengold
VicePresident, Operations and
CEO Tenet Saint Louis
An early and intense experience with the medical profession made
a profound impression on Phillip Schaengold. In fact, it led to
his decision to choose a career in health care.
Explains Schaengold, Tenet vice president, operations and chief
executive officer of Tenet Saint Louis, “I was stricken with polio
as a child. So working in health care was my way to try to give
back to a profession that helped me through a difficult time.”
In preparation for becoming a health care administrator, Schaengold
earned a degree in pharmacy at the University of Cincinnati College
of Pharmacy in 1971. Then he kept going.
“I thought to be a successful executive in the healthcare environment,
it was important to have a good grounding in business,” Schaengold
says. “And later on I recognized how legal issues impacted health
care.”
So, in a speedy seven years, while working full time heading up
a hospital pharmacy department, Schaengold received a Master of
Business Administration from the University of Cincinnati in 1975,
followed by a Juris Doctor from Northern Kentucky University in
1979.
Then, Schaengold rounded out his resume with some corporate experience.
That resulted in his first visit to St. Louis, as head of the development
team of the clinical component of a hospital information project
developed by McAuto, a division of McDonnell Douglas Corporation,
from 1980 to 1983. But, because he really did want to run hospitals,
he joined Menorah Medical Center in Kansas City as an assistant
administrator, then chief operating officer, then president from
1986 to 1992.
By that time, Schaengold had discovered what really piqued his professional
interest was the challenge of a turnaround— specifically, applying
proven business systems to an ailing hospital to turn it into a
success. He had such an opportunity at the Sinai Health System in
Detroit. In fact, Schaengold turned the system into such a success
that it became an attractive acquisition target and was sold by
its board to the Detroit Medical Center.
Then Schaengold made another discovery, when he left behind the
non-profit health care world to help investor-owned Universal Health
Services acquire and operate the George Washington University Hospital
in Washington, D.C.
He served as chief executive officer and managing director of the
hospital until 2000, when Tenet asked him to head its St. Louis
healthcare system.
“I realized investor-owned hospital management companies do a fabulous
job of applying standard business tools to produce an outstanding
clinical product,” Schaengold says. “Operating a health care facility
in a businesslike manner is not in conflict with producing social
good. In fact it works well.”
As proof, Schaengold cites Saint Louis University Hospital’s inclusion
in the May/June 2002 Modern Maturity list of the 50 top hospitals
in the United States. At number 30, SLU Hospital is the only St.
Louis-area hospital listed. Its renal program was named one of the
top10 in the nation. Also, SLU Hospital was listed in 10 clinical
categories in U.S.News & World Report’s annual survey of
hospitals.
Schaengold believes Tenet Saint Louis has a competitive edge because
“it applies business tools to that aspect of hospital management
that is best served by business methods” he says. “Everything we
do positively affects clinical outcomes, complemented by our business
know-how.”
Clinical outcomes recently got a boost by the opening of the $10.1
million Saint Louis University Cancer Center, located in the former
Bethesda General Hospital. The Center combines the latest advances
in research, prevention and education with individualized care in
a region where cancer is a leading cause of death.
Another recent development is the opening at Forest Park Hospital,
of the unique, state-of-the-art TenetCare outpatient facility. “It
makes providing healthcare services as hassle free and patient friendly
as possible,” Schaengold explains.
Helping Schaengold accomplish Tenet Saint Louis initiatives are
the CEOs of each hospital, plus executives in finance, marketing,
managed care, business development and medical affairs. Schaengold
works with them “to establish a strategic direction for the region
that’s appropriate for each hospital’s own community needs.”
Looking ahead, Schaengold says Tenet Saint Louis sees a shift in
the market from overcapacity to not having enough beds, particularly
in emergency rooms and intensive care units.
“We’ve seen closure of hospitals and consolidation of beds, particularly
in urban settings,” Schaengold says. “Now the baby boom bubble is
beginning to roll through health care. They’re demanding more health
care services and have the ability to pay for it, so over the next
two to five years you’re likely to see a shortage of beds.”
After hours, Schaengold devotes time to the American Liver Foundation,
the Multiple Sclerosis Society and the American Heart Association,
and is a regional board member of the National Conference for Community
and Justice.
Professionally, Schaengold serves on the Missouri Hospital Association’s
Board of Trustees and on the Board of Governors of the Federation
of American Hospitals.
As a regional resident for the second time, Schaengold notes a few
things have changed in 20 years. For example, the first time he
lived here, he lived in Chesterfield.
“Back then many considered it the edge of the St. Louis world, but
now it’s like living in midtown,” Schaengold says. “But the City
vs. County and region vs. out state issues have not changed much
at all.”
Still, since Tenet Saint Louis is the fourth largest employer in
the city of St. Louis, with 5,624 employees, Schaengold has high
hopes for the region.
“We have a very large investment here, with four hospitals within
the city limits and one hospital in the West County,” he says. “We
would like to help the region grow, by looking at opportunities
for future acquisitions, while helping each hospital continue to
develop strength in its particular market.”
Pam Droog is a frequent contributor to St. Louis Commerce Magazine.
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