WILLMAR -- Letters are going out at the end of this week to about a dozen regional and national health executive search firms, asking them to submit a proposal for conducting a search for Rice Memorial Hospital's next chief executive.
The city-owned hospital's board of directors voted Wednesday to use a search consultant for the process.
Lorry Massa, the current Rice CEO, is leaving at the end of September to become the new executive director of the Minnesota Hospital Association.
Members of the hospital board also decided Wednesday to choose an interim chief executive from among the hospital's current executive team. Those interested in the temporary position will be asked to submit a letter of interest and undergo an interview with the board.
It's only the second time in nearly 40 years that Rice Hospital has had to launch a search for a new chief executive. Massa has held the top post at the hospital for almost 15 years; his predecessor, Hans Dahl, was the hospital's administrator for 24 years.
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"The board of directors really has one job, and that's to hire the CEO or fire the CEO," said Wayne Larson, chairman of the seven-member board.
"This is a stamp we get to have," said board member David Anfinson. "Hopefully we only do this once every 15 years."
The board hopes to have proposals from at least a dozen search firms by early September. The list will be narrowed to two or three firms, one of which will be selected at the board's next meeting on Sept. 24.
Board members hope that by using a search firm, they'll be in a better position to identify the best candidates and have each candidate's background screened and reviewed. The search firm also can help with the process of interviewing prospective CEOs and negotiating a contract with the candidate who's hired.
The board wants the process to include an assessment of Rice Hospital's needs and strategic goals, and development of a list of criteria needed for a new CEO.
It will help the board see the big picture, said board member Richard Engan.
"We need to start by looking inward," he said. "A search firm could really give us some of that guidance."
No decisions have been made yet about how this will be carried out, but it's likely that city officials will be invited to get involved, as will representatives of Willmar's two medical clinics and possibly other stakeholders as well.
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It could take six to eight months to find Massa's replacement.
Massa said Wednesday that he expects the board will have proposals from several search firms.
"I know you'll have a lot of interest from search firms wanting to work with our hospital," he said. "I believe strongly that there will be a great deal of interest in this position."
Search firm fees are usually one-third of the initial compensation package for the new executive who's hired. In Rice's case, the fee will likely be somewhere around $100,000.
Board members said Wednesday that it's an investment that needs to be made.
"If we don't use a search firm, we likely will spend at least that much, using our own staff," said Dr. Robert Kruger.
The board also launched the process Wednesday of finding an interim CEO who can lead the hospital until a new chief executive is in place.
Rather than turning to an outside agency, board members want to appoint someone from within the ranks, citing a need for continuity.
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"We have people who are well qualified within the organization," Larson said.
He said there could be three or four applicants, one of whom will be selected by the end of September.
