Gov. Juan F. Luis Hospital Chief Executive Officer Jeff Nelson has resigned, effective immediately, Government House confirmed Saturday.
"The governor was notified late Friday afternoon or early evening that Nelson had submitted his resignation," Government House spokesman Jean Greaux said Saturday morning. Nelson submitted the resignation in accordance with the 45-day notice required in his contract, Greaux said. "But he has resigned the position effective immediately," Greaux said.
Nelson was selected by the hospital’s governing board in January 2011. The hospital was facing severe financial difficulties and intense scrutiny from the Centers for Medicare and Medicaid Services, which accredits hospitals and determines whether they are eligible for Medicare and Medicaid reimbursements.
Board members at the time cited Nelson’s experience as a "turn-around" expert who specialized in temporarily taking the helm of financially troubled health care facilities, making unpopular changes and putting them on a sustainable path, then leaving to the next job.
Nelson has come under intense criticism from board members, staff and the V.I. Legislature ever since the hospital laid off 85 licensed practical nurses and certified nurses assistants Feb. 28, 2012. The LPNs and CNAs are nurses and nurses’ assistants who have less training and education than registered nurses.
In December, the board decided to strip Nelson of some of his responsibilities and began searching for a chief operating officer.
Nelson has a three-year contract at a salary of $310,000 He started work Jan. 24, 2011, and hence has almost exactly one year left on his contract.
According to his resume he submitted to the board during the selection process, he was most recently CEO of Hollywood Presbyterian Medical Center in Los Angeles, Ca. from 2007 to 2009.
During his tenure, he purportedly brought that 434 bed, 1,500 employee comprehensive hospital to profitability within four months and increased its earnings before interest, taxes, depreciation and amortization (essentially revenue minus operating expenses) by $12 million in less than two years, according to his resume. The medical center he was running ranked in the top-10 nationwide for patient care quality in stroke care, general surgery and obstetrics. And he boosted patient satisfaction scores while reducing operating costs per admission.
His average tenure at a hospital is three to four years, and he has typically left for similar turnaround roles at other struggling institutions. Since 2004, he has been a principal in Tatum LLC, a financial consulting firm.
Calls to Nelson for comment were not returned as of 1 p.m. Saturday.
