Basic business classes tell you that the larger your fixed expenses are, the more revenue will be needed to cover the daily operations. I wonder what the impact on operational losses will be when the new and improved hospital emerges after the $17 million construction project to be undertaken at the urging of Franz. This is a man who thinks little of spending hundreds of thousands of dollars in consulting contracts annually when resources are typically available within the organization that would serve the same purpose.

It's disturbing to see that the heavy turnover of senior personnel continues. The chief financial officer and human resources director have recently departed. It's worth remembering that Franz decided just over two years ago that several key managers under him should be let go, purportedly to save money. Those who were laid off had decades of experience in managing resources at the hospital. It's interesting to note that the losses have accelerated since those layoffs. Turbulent personnel turnover is a serious drain on hospital resources when training and experience are sent out the door. The turnover rate at the hospital has been exceedingly high. Could it be that the hospital senior manager drives capable people away?

Franz laid off the CEO's executive assistant who had worked there 30 years she had an incredible breadth and depth of knowledge of the hospital's operations and had worked at the hospital longer than any other hospital employee. Franz laid off the senior nursing manager she had an incredible background in patient care and personnel management. Charlie also let me go in the U.S. Air Force, I managed multi-billion dollar contracts and at South Peninsula Hospital managed the materiel function, which included purchasing all the supplies necessary to operate the hospital and provide quality patient care. During my tenure, warehousing expenses were lowered by $450,000, and the purchasing function significantly improved.

Apparently this type of experience, which focuses on saving the hospital money, doesn't and didn't count in the CEO's mind.

It sounds as though the community is voting with its pocketbook if health treatment is sought elsewhere than South Peninsula Hospital. That speaks volumes as well, when Franz is quoted as saying, "It may take awhile to regain the community's trust."

Given the continued loss of revenues and future increases forthcoming in fixed expenses, perhaps it's time that the CEO was shown the door and someone who is more capable hired to replace him, thereby restoring the community's trust.

Joe Hannigan is a former SPH employee.