Hospital Picks Chief Executive Officer to Secure Future of Medical
Complex; Announces Plan to Build New Facility

By JOSHUA SABATINI

A new era promising a brighter future in the wake of yearly fiscal
woes has dawned at Martha's Vineyard Hospital, as the
hospital's board of trustees last week approved a new chief
executive officer and a plan for a possible $30 million project to
construct a new hospital facility.

The hospital board of trustees voted unanimously at its July 26
meeting to appoint Tim Walsh as the hospital's new CEO. Mr. Walsh
had been serving as interim CEO since April, when Kevin Burchill, his
predecessor who came on board in October 1999, resigned.

Board of trustees chairman John Ferguson publicly announced Mr.
Walsh's appointment Saturday morning at a hospital forum held at
the Island's regional high school.

"We are so happy [Mr. Walsh] will lead the institution into a
whole new era," said Mr. Ferguson. "He will take it, build
it and do wonderful things."

"I want to thank the search committee and the board for their
show of support and confidence they have in me to take the hospital and
lead it into the future," said Mr. Walsh. "I think we are in
a great spot right now with a lot of things coming together setting us
up for a better future."

Mr. Walsh said he understands the hospital has had its share of
problems in the past, but feels his leadership can make a significant
difference.

For two years, Mr. Walsh was involved in the finances of the
hospital and Windemere Nursing Home and Rehabilitation Center. He began
his tenure at the hospital as chief financial officer in June 2000.
Before coming to the Island's hospital, Mr. Walsh had served as
vice president of finance at Boston's Carney Hospital since 1984.

In a press release, Mr. Ferguson said Mr. Walsh's tenure at
the hospital and Windemere had resulted in "a level of fiscal
health that had eluded both institutions for far too long."

But Mr. Walsh's performance as interim CEO was instrumental in
the board's decision, Mr. Ferguson said.

The executive search firm Korn/Ferry International had been hired by
the hospital to help find the right candidate for the position.
Korn/Ferry recommended Mr. Walsh, as did a hospital search committee,
which was charged with finding a candidate who understands the
operations of a small rural hospital and its role in such a unique
community as Martha's Vineyard.

"Folks want the assurance that [the hospital] can be here for
the long haul, provide top-quality medical care, be financially viable
in this crazy health-care climate, and be attentive to and respectful of
the community's needs," said Tim Sweet, chairman of the
search committee and vice chairman of the board of trustees, in a press
release. "These are issues that carry equal weight, and we
haven't done a great job at balancing those challenges."

Mr. Walsh's "no-nonsense style" suits the hospital
well, Mr. Sweet added.

The board of trustees voted unanimously to pursue plans to construct
a new hospital, in hopes of modernizing the facility and also addressing
existing financial concerns.

According to a strategic financial plan prepared by the national
certified public accounting firm Feeley & Driscoll, a new facility
"would present the opportunity for increased operating
efficiencies and give the organization greater flexibility to manage
costs."

Mr. Walsh said his top priority is getting a plan together to deal
with the facility's poor conditions. "The hospital needs a
new facility," said Mr. Walsh. "The layout is very
inefficient."

Mr. Ferguson said he hopes a new hospital could be constructed in
stages on the site of the present hospital.

The board will next take two steps, said Mr. Ferguson. One, he said,
is to launch a feasibility study to determine whether the $30 million
could be met through fundraising. At first glance, he said, it appears
fundraising can satisfy the project's cost.

The second step is to send out a request for proposal to architects
and planners for drafting a plan of the facility. Mr. Ferguson said
these two steps will be taken simultaneously.

With the new CEO and the possibility of a new facility, Mr. Ferguson
said, staff morale is very high. He said that when Mr. Walsh was
introduced to the hospital staff as the new CEO he was greeted with a
standing ovation.

In terms of the hospital's financial picture, Mr. Ferguson
said the hospital is budgeted to run $700,000 over in operation costs
this year, but expects that number to come out closer to $500,000.

As in past years, he said, the hospital will use gift money to
offset the deficit. But he hopes next year the hospital will at least
break even so all gift money could be used toward the construction of a
new facility.

Mr. Ferguson said the board is tackling the issues at the hospital
"piece by piece," and he expects additional changes over
time. "We won't let anything get in our way of moving
ahead," he added.

As part of the Saturday morning forum, seven recently hired
physicians were introduced to the community. Mr. Walsh said the new
physicians are a good first step in paving the way for a bright future
at the hospital as they bring an "enhancement to the medical
staff."

"I'm really pleased that it's worked out this
way," said Mr. Walsh. "I'm grateful that the board has
the confidence in me to pull us through these changing times, and I
appreciate the support from the community, the doctors and the staff.

"We want to demonstrate that crisis management will become a
thing of the past for this institution."