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When Is It Time for the Board When Is It Time for the Board The Board Chair gets a call from the CEO to Face the Public? to Face the Public? Steve Rivkin w w w.Rivkin.net Senior Fellow, Health Communications & Marketing Strategy w w w.EstesPark.org “Harriett, the Med Exec “Harriett, the Med Exec Questions for this Session Questions for this Session committee just gave me a committee just gave me a unanimous no-confidence unanimous no-confidence 1. Where do the “public” responsibilities of 1. Where do the “public” responsibilities of vote. vote. “They’re complaining about “They’re complaining about management end … and those of the Board management end … and those of the Board closed communications and closed communications and begin? begin? aloofness. And the Gazette aloofness. And the Gazette 2. When is it appropriate (or obligatory) for the 2. When is it appropriate (or obligatory) for the called, and wants to talk called, and wants to talk about my compensation. about my compensation. Board to speak publicly on behalf of the Board to speak publicly on behalf of the institution? institution? “I’m asking you to release a “I’m asking you to release a statement on behalf of the statement on behalf of the 3. How should the Board deal with the media? 3. How should the Board deal with the media? board, backing me board, backing me completely.” completely.” -- CEO -- CEO Management’s Management’s Board’s Responsibility to Board’s Responsibility to Responsibility to the Board Responsibility to the Board the Community the Community • What they should know • What they should know • Proud to be operating in the • Proud to be operating in the sunshine sunshine • When they should know it • When they should know it • Adamantly pro-disclosure, pro- • Adamantly pro-disclosure, pro- • Input before output • Input before output communication and pro- communication and pro- transparency transparency

Example: OhioHealth System Example: OhioHealth System  The Board passed a resolution regarding  The Board passed a resolution regarding physicians who compete with them by physicians who compete with them by investing in for-profit, limited-service investing in for-profit, limited-service hospitals hospitals  Then the Board posted its point-of-view  Then the Board posted its point-of-view on the website and spoke out on the website and spoke out “Trustees are empowered “Trustees are empowered with special authority with special authority when it comes to telling when it comes to telling the hospital story. You the hospital story. You know the issues, you know the issues, you know the impacts. And know the impacts. And OhioHealth Board of Directors Takes Stand Against For-Profit, Limited Service Hospitals chances are, you know the chances are, you know the players in your players in your community, too.” community, too.” Rich Umbdenstock, AHA president, in Rich Umbdenstock, AHA president, in Trustee magazine (June 2011 ) Trustee magazine (June 2011 ) _________________________ _________________________ “ Most important of all, “ Most important of all, your position gives your position gives you unrivaled you unrivaled Most Hospital Situations Most Hospital Situations credibility.” credibility.” Do Not Require a Do Not Require a Rich Umbdenstock, AHA president, Rich Umbdenstock, AHA president, in Trustee magazine (June 2011) in Trustee magazine (June 2011) “Visible” Board “Visible” Board _________________________ _________________________

Basic Principle Basic Principle  The vast majority of hospital issues  The vast majority of hospital issues are operationally oriented are operationally oriented  They should be handled directly, and  They should be handled directly, and exclusively, by management exclusively, by management

These Incidents Demand… These Incidents Demand…  Management’s attention, explanation  Management’s attention, explanation and reconciliation and reconciliation  Whereas the board’s role is to serve  Whereas the board’s role is to serve as silent supporter: as silent supporter: • Knowledgeable about the situation • Knowledgeable about the situation • Supportive of management’s plans • Supportive of management’s plans • But with nothing to say publicly • But with nothing to say publicly _________________________ _________________________ Some Situations Do Some Situations Do Transcend Management Transcend Management _________________________ _________________________ An Ill-Advised Reaction An Ill-Advised Reaction Hospital CEO Stern could not be reached for Hospital CEO Stern could not be reached for comment. During an earlier interview, he said comment. During an earlier interview, he said he resented questions about his salary and said he resented questions about his salary and said it wasn’t anyone’s business. it wasn’t anyone’s business. As a non-profit institution, hospitals are As a non-profit institution, hospitals are required to file tax records that list salaries. required to file tax records that list salaries. Those records are public. Those records are public. -- from the Page One article -- from the Page One article

What’s Needed Here… What’s Needed Here… What’s At Stake What’s At Stake  The Board should step in and take  The Board should step in and take  Is nothing less than the very  Is nothing less than the very charge, in a visible and public way charge, in a visible and public way community trust that the Board, its community trust that the Board, its  And reassure the community that, in  And reassure the community that, in chair, its vice-chair, etc., were chair, its vice-chair, etc., were entrusted to safeguard entrusted to safeguard effect: effect: • Its interests are being protected by • Its interests are being protected by wise and objective stewards wise and objective stewards _________________________ _________________________ Existing Goodw ill Existing Goodw ill  Have you made “goodwill deposits”  Have you made “goodwill deposits” Have you “Reached Out” Have you “Reached Out” in the bank of public opinion? in the bank of public opinion?  Been “out there” in the community?  Been “out there” in the community? to the Public? to the Public?  Met with the media, perhaps jointly  Met with the media, perhaps jointly _________________________ _________________________ with the CEO, for an annual “State of with the CEO, for an annual “State of the Hospital” discussion? the Hospital” discussion?

Reassurance Reassurance  Especially in a time of crisis, the  Especially in a time of crisis, the community needs to be reassured by community needs to be reassured by the cool and calming presence of the cool and calming presence of levelheaded individuals on the Board levelheaded individuals on the Board Orientation Orientation Tw in Commitments Tw in Commitments  It should be clear that your  It should be clear that your  To providing the highest quality  To providing the highest quality allegiance is to the community -- not allegiance is to the community -- not healthcare possible for the healthcare possible for the to one side or the other, or to any of to one side or the other, or to any of community community  To keeping the community informed  To keeping the community informed the quarreling parties the quarreling parties  Public statement must reinforce  Public statement must reinforce throughout any major situation throughout any major situation community interests first community interests first _________________________ _________________________ Announce an Action Plan Announce an Action Plan  Your objective should be to get the  Your objective should be to get the Facing the Public: Facing the Public: issue resolved (and out of the news) issue resolved (and out of the news)  You need an action plan and a  You need an action plan and a Some Do’s & Don’ts Some Do’s & Don’ts timeline to “fix the problem” -- a task timeline to “fix the problem” -- a task _________________________ _________________________ force, outside expertise, new people force, outside expertise, new people

1. Do speak with one voice 1. Do speak with one voice Questions? Comments? Questions? Comments? 2. Do start with the staff 2. Do start with the staff 3. Do seek out your allies 3. Do seek out your allies 4. Don’t speak on the record with 4. Don’t speak on the record with anyone and everyone anyone and everyone 5. Do have a standby statement and 5. Do have a standby statement and your MAPs (“Must Air Points”) your MAPs (“Must Air Points”)