By Tracey Drury – Reporter, Buffalo Business First
Jul 19, 2022
As Don Boyd shifts into the CEO position at Kaleida Health, he faces a “herculean” list of challenges at the region’s largest health system.
He is leading labor talks on a master bargaining agreement that covers 6,300 employees (the existing contract that expired May 31 is on extension through July 31).
He will oversee a commitment to add more than 400 full-time employees during a time when recruitment and retention have never been more challenging.
And he will continue to face the financial challenges wrought by Covid-19 that saw the system end 2021 with a deficit of $46 million on revenue of $2 billion, eased slightly by one-time federal relief funds that reduced the loss to $24 million.
“I don’t think there’s any question about it that the job is herculean,” said Robert Gioia, chairman of Great Lakes Health, which oversees joint operations for Kaleida and Erie County Medical Center Corp. “You have so many drivers that affect your business model and in some cases, are way out of their control.”
CEO Robert Nesselbush announced last week that he is retiring. As CEO, Boyd will now run a complex business with a rapidly changing workforce that is demanding more and deserving more than ever before, Gioia said.
“The challenge will be managing to control margins as best as one can without sacrificing quality. That is the real challenge,” said Gioia, who has worked with Boyd since he joined the Great Lakes board 15 years ago. “What can happen is you can fix one and hurt the other. It is a grueling, grueling business, but one that can be very rewarding.”
Boyd, 50, brings 25 years' experience at Kaleida in a variety of leadership roles. He was hospital president at the former Millard Fillmore Gates Circle and oversaw business development for a decade. He also helped lead the growth of cardiac, stroke and vascular surgery at Gates Vascular Institute – among the system’s highest profile business lines.
A native of Plattsburgh, Boyd earned undergraduate degrees in 1993 in community mental health and psychology, then an MBA in 1997 with a concentration in corporate finance and health care systems management, both from the University of Buffalo. He joined Kaleida in May 1997 as a data analyst as the system was being created through the merger of five hospitals.
Those years of experience gave Boyd a wide understanding of all aspects of the system, Gioia said, pointing to his understanding of the complexities of the business. He also gained a willingness to sit and discuss issues, but also take action when needed but do it in a way that is communicative, collaborative and thorough, Gioia said.
“He’s very personable, but also very demanding, which in that role you have to be. You have no choice,” he said.
Boyd was among a small group of finalists for the CEO job in 2020, a job that went to then-chief financial officer Nesselbush. Boyd remained with the organization and was rewarded with the addition of the president's title to his chief operating officer role.
The fact that he stayed with the organization is telling, said Jody Lomeo, who was Kaleida CEO from 2014 through 2020.
“Having not been chosen a couple of years ago, what did he do? He put his head down and grinded it out. He’s a top performer,” Lomeo said. “We’re coming out of a pandemic, which severely harmed all health systems. That’s what he’s facing, but he’s the right guy to do this.”
The key to addressing both financial and staffing challenges will be to identify the right people to surround himself with, Lomeo said.
“The No. 1 goal or responsibility of the CEO is to build a team,” Lomeo said. “Don is a very thoughtful, intelligent leader and he’s a great listener and a very good communicator. Hopefully he’ll build on the culture and really make it better.”
Boyd will have to figure out the financial challenge tied to the ongoing shift into risk-based payment models that will be faced by the Great Lakes Integrated Network, which represents physicians affiliated with both Kaleida and ECMC.
Another challenge tied to staffing that's not to be overlooked is wage inflation, which may be justified and long overdue but still tough to accomplish while reimbursements still don't match costs.
That's why the team piece should not be underestimated, said Thomas Quatroche Jr., CEO at ECMC, who has worked with Boyd on several joint initiatives between the two systems under Great Lakes Health.
“When you’re CEO of an organization, you can’t obviously do it alone and it takes the team to be able to execute on the vision and strategy and day-to-day operations,” he said. “He’s going to need to spend some time doing that and he will. He’s got a very good sense of people, what needs to be done and the skill sets needed.”
Kaleida Health CEO Don Boyd faces 'herculean' challenges - Buffalo Business First (bizjournals.com)