Virginia Commonwealth University is arranging for the departure of health system CEO Dr. Art Kellermann, three sources told the Richmond Times-Dispatch.
On Monday, the university notified Kellermann he won’t continue as the health system’s top administrator. VCU gave him the option to resign, but it’s unclear if he will do so.
A spokesperson for the university said Kellermann is out of the office, but the spokesperson did not elaborate. Dr. Marlon Levy is the acting health sciences senior vice president and CEO of VCU Health.
VCU Health lost $56 million last year, as hospitals struggle with increased costs
Employees were notified Monday. Kellermann declined to comment.
VCU announced it will hold a joint meeting of the university board of visitors and health system board of directors Thursday. A majority of both boards is required to fire the CEO.
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Kellermann oversaw the health system during a tumultuous period in which the hospital became overwhelmed with COVID patients, nurses departed and the university was dealt a financial blow.
But it also grew during his tenure, opening a new downtown building, continuing construction on another and launching a new electronic medical record.
VCU Health, which employs more than 13,000 people across 70 locations, hired Kellermann as its leader in July 2020. In late 2021, the omicron wave brought the highest influx of patients since the pandemic began, wearing staffers thin. Nurses left in droves, forcing VCU Health to rely on more expensive travel nurses.
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Increased labor costs were a major contributor to VCU Health finishing the 2022 fiscal year with a $56 million budget deficit, about 2% of its annual budget. Health systems across the country have faced similar financial woes.
But VCU also had moments of major progress. In December, it opened the nearly $400 million adult outpatient pavilion. Around the same time, it transitioned to a new electronic medical record, Epic. By using the same software as Bon Secours and hospitals across the country, VCU doctors can now easily see the medical history of patients who have visited Bon Secours hospitals, and vice versa.
VCU also moved forward on the construction of a 16-story children’s hospital tower scheduled to open in the spring of 2023.
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A number of executives have come and gone from VCU Health in the past two years. Dr. Peter Buckley, formerly dean of the school of medicine, resigned last year. He had served as interim CEO before Kellermann came on. Kellermann replaced Dr. Marsha Rappley who held the top job for about four years.
Buckley’s departure came days after chief information officer Susan Steagall said she would leave.
To fill out the health system’s administration, VCU hired Michael Elliott as chief operating officer, James Siegel as chief financial officer and Michael Roussos as president of VCU Medical Center.
VCU Health plans to build a smaller downtown building for labs and research
Kellermann came to VCU from the F. Edward Hebert School of Medicine at the Uniformed Services University of the Health Sciences in Maryland, where he was dean. His specialty is emergency medicine.
VCU president Michael Rao oversees both the university and its health system.
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VCU Health’s Adult Outpatient Pavilion, which will house Massey Cancer Center on five of its floors, is slated to open on Dec. 6.
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With big windows and natural light pouring in, the 14th floor of the Adult Outpatient Pavilion affords a view of Richmond.
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At left are the private infusion rooms in the VCU Massey Cancer Center at the VCU Health Adult Outpatient Pavilion. The pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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This is the Wig Salon in VCU Massey Cancer Center at the VCU Health Adult Outpatient Pavilion. The Pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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Dr. Douglas W. Arthur, associate director for clinical affairs and chair and professor of Radiation Oncology, talks about the PET/CT scanner at VCU Massey Cancer Center at the VCU Health Adult Outpatient Pavilion. The Pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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The sky is displayed on the ceiling of a CT scan room at VCU Health’s Adult Outpatient Pavilion at 1001 E. Leigh St.
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The 14th floor of the VCU Health Adult Outpatient Pavilion, at 1001 East Leigh Street, affords a view of the Coliseum. Photo was taken on Monday, November 15, 2021.
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The 14th floor of the VCU Health Adult Outpatient Pavilion, at 1001 East Leigh Street, affords a view of the Coliseum. Photo was taken on Monday, November 15, 2021.
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Dentist W. Baxter Perkinson Jr., a graduate of VCU’s School of Dentistry, created this painting. It is one of about 500 that he painted for the VCU Health Adult Outpatient Pavilion located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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A starry sky is displayed on the ceiling above the PET/CT scanner in VCU Massey Cancer Center at the VCU Health Adult Outpatient Pavilion. The Pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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Dr. Tom Yackel, president of MCV Physicians, shows how a patient’s chair in an examination room is adjustable.
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This is the MRIdian scanner in VCU Massey Cancer Center at the VCU Health Adult Outpatient Pavilion. The Pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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The VCU Health Adult Outpatient Pavilion is located at 1001 East Leigh Street. Photo was taken on Monday, November 15, 2021.
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The VCU Health Adult Outpatient Pavilion is located at 1001 East Leigh Street. The parking deck is covered in yellow. Photo was taken on Monday, November 15, 2021.
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The VCU Health Adult Outpatient Pavilion is located at 1001 East Leigh Street. The parking deck is covered in yellow. Photo was taken on Monday, November 15, 2021.
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The VCU Health Adult Outpatient Pavilion is located at 1001 East Leigh Street. The parking deck is covered in yellow. Photo was taken on Monday, November 15, 2021.
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Virginia Commonwealth University and VCU Health announced plans to start construction on a $349 million outpatient facility during a groundbreaking event Friday, June 22. This is the largest capital construction project in the history of VCU Health. The 16-story, 603,000-square-foot building will be a downtown hub for comprehensive outpatient care, and a new 472,000-square-foot parking deck will add more than 1,000 parking spaces at the point of service on the downtown medical campus. The estimated completion date of the initial design and construction phase is summer 2020.
