Brim Testimonial: Achieving Financial Stability and Rebuilding Community Trust

A Brim Success Story

Schuyler Hospital
Montour Falls, New York rick_stelzer

In three decades of managing hospitals, Rick Stelzer had never seen anything like the financial crisis that threatened Schuyler Hospital when he arrived there.

“I’ve seen facilities in dire straits before; we all have. But there was no question this was the toughest assignment I’ve ever had,” said Stelzer, the chief executive officer at Schuyler since Brim Healthcare was awarded a contract to manage the hospital in 2005.

The hospital teetered on the verge of bankruptcy, mired in financial problems that were wide and deep. Cash reserves were virtually depleted, debts to vendors were in the millions and climbing, bankers were hovering and contemplating options, and the community was utterly frustrated.

Two years after Stelzer and the Brim team came onto the scene at Schuyler, they have guided the hospital far enough out of the crisis to see powerful future potential and initiate a master facility planning process. There are still challenges and ongoing improvements to be made, but the hospital will survive and now has the chance for a solid future.

“We’re still cash-strapped here—reimbursement in New York is so low—but we’ve had positive margins these last two years, have paid down debt and settled some reimbursement issues with the government,” Stelzer said. “The community is really impressed with what we’ve done.”

How did he do it? The turnaround opportunity was bolstered by the hospital’s longstanding excellence in the core clinical areas. Patient care at Schuyler has consistently ranked high in the region in quality evaluations, and that strength survived the financial crisis.

Rebuilding the trust of the hospital board and community was one of Stelzer’s most important priorities. “The community really wanted to keep this hospital,” Stelzer said. “We learned that early on and I’ve spent a tremendous amount of time out in the community, making sure we earned back that trust and keeping that support where it needs to be. We make sure the board knows we are watching the ship, that we disclose problems when we see them, and we take responsibility for getting them fixed.”

With every corrective step, Stelzer works closely with Brim’s regional vice president and financial officer, along with a team of Brim consultants supporting all areas of operations.

“The team at Brim is invaluable,” said Stelzer, who most recently worked in the Cleveland Clinic and Ohio Health systems. “It’s the best team I’ve ever seen in my career. These aren’t a bunch of rookies just out of graduate school, either. These are people who have been around and really know the business.”

Stelzer also has made good use of his connection to a group of Brim peers across the country. “When you’re in a free-standing hospital, you’re all alone,” he said. “With Brim, there are more than 30 other CEOs I can call for help if I need it, and it is freely and generously offered. That network is invaluable—you can’t put a price on it. My staff makes use of the Brim network in the same way.”

And with Brim, he has joined an organization with a mission he shares and an approach that’s compatible for him. “A lot of us first came into this business as a mission of service, then in recent years have had the corporate practice of medicine shoved down our throats. Where other large companies tell you what to do, and you’re constantly second-guessed by the board and regional hierarchy, Brim’s role is much more consultative and supportive."