Munson outreach eases concerns of some

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Ed Ness Record-Eagle/Jan-Michael Stump

May 18, 2010

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com The Record Eagle Tue May 18, 2010, 07:28 AM EDT

TRAVERSE CITY — Munson Healthcare's recent leadership change and its transition to a more transparent, go-slow approach to Spectrum Health merger talks already have reduced anxiety for some in the community.

Ed Ness, Munson Healthcare CEO and president, began meeting with media and various local interest groups last week to help quell rising sentiment against a deal with Grand Rapids-based Spectrum.

Ness has been on the job fewer than two weeks after being promoted from Munson Medical Center CEO to replace Doug Deck, who resigned suddenly on May 5.

Observers believe Munson decided Ness is a more palatable commodity to many in the Traverse City area.

"Frankly, I think that's why Deck is gone," said Larry Miller, of Frankfort, who formerly held board positions at Munson and Paul Oliver Memorial Hospital in Frankfort. "I don't think he anywhere near anticipated the backlash from the entire area that this thing was going along too fast."

Traverse City has a reputation as maintaining a parochial attitude toward its hospital, a mindset that could create wariness among some amid merger talks. But Ness has said he views that notion as a positive; it's a good problem to have a community invested in its hospital, he said.

"Ed's a breath of fresh air," Miller said. "I think however it moves forward, he'll play a major role to see that it's done right."

Traverse City attorney Ron Sondee said some community leaders haven't been pleased that Munson focused on one option, nor were they happy with what they perceived as hasty deal-making. He said Munson's recent change of course — to get a second opinion on capital projects' costs and other financial matters, to slow the process, to increase transparency, and Ness' promotion — reduced anxiety among some in the community.

"There's a great deal of respect for Ed Ness. He's been around for a long time, very competent and highly respected," Sondee said. "I think Ed will be very thorough in his ongoing analysis and communications with the community, which is badly needed."

Munson officials acknowledged mistakes in adopting a 120-day timeline to conclude Spectrum discussions, and said they failed to provide enough information to the community.

"Our problem is how do you talk about the sausage when it's still being made," Ness said. "We kept flipping back and forth between selling it and saying we're still looking at it."

Kathy Garthe, Munson vice president of corporate communications, said hospital officials should have spent early stages of the merger debate discussing broad health care issues that drive affiliations.

"We have not done a good job communicating what we had in mind," Garthe said. "Now we can just work our tails off and make up for it."

The work began with weekly briefings for boards of affiliated hospitals and Munson's 310 corporate members, a group of community leaders who must approve a full merger with Spectrum. Munson officials have more than 20 speaking engagements with large groups, plus small group lunches with Ness they've dubbed "lunch with Ed."

They also are planning for meetings for the general public, but with 175,000 people in the five-county area and 325,000 more throughout northern Michigan, logistical issues must be resolved, Garthe said. Munson also has a merger hotline, 935-2000, on which callers may leave comments or ask questions.