New River CEO Marshall Smith receives evaluation

New River Medical Center CEO Marshall Smith’s recently completed employee and overall performance evaluation doesn’t include a change in compensation.
Executive committee members Ervin Danielowski, Linda Doerr, Bob Dawson and Brian Doyle met Dec. 5 to complete Smith’s evaluation. A required summary of Smith’s evaluation was forwarded to the full board for public presentation Dec. 13, in accordance with Minnesota Open Meeting Law, which states a hospital board may close a meeting to evaluate performance of an individual who is subject to its authority. The board has to identify the individual being evaluated prior to closing a meeting. Then at its next open meeting, the hospital board must summarize its evaluation conclusions. Smith’s last employee evaluation was conducted on Dec. 27, 2011, said Joni Pawelk, New River Medical Center’s director of marketing. Smith’s current annual salary is $260,000. The date of his last salary increase was July 5, 2010. The annual amount of that increase was $20,000. Smith’s total compensation package during 2011 was $341,290.
Doerr presented Smith’s evaluation summary during last week’s hospital board meeting. She said the executive committee reviewed Smith’s performance, in relationship to his job description, continuing education, expectations and also reviewed a “detailed summary of events” that described the past 12 months of planned and unplanned activities. “The board also reviewed Marshall’s total compensation. There will be no changes in compensation at this time,” Doerr said.
Doerr said the board recognized Smith’s strength to strategically plan and establish contingency plans to respond to the unexpected changes that occurred this past year with regarding hospital contracts, surgeon recruitment and services. “We felt he maintained his professionalism during a very troubling time, and while receiving an unsettling level of criticism,” Doerr said. “We talked about demonstrating improved collaboration with the affiliation partner [CentraCare] and the Monticello Clinic and opportunities to grow primary care provider volumes. Overall, we felt Marshall worked diligently with the leadership team this past year.”
According to Doerr, Smith demonstrated an effective plan to reduce expenses and minimize losses, although New River Medical Center experienced a significant loss in revenue due to a change in patient referrals. “He’s worked to minimize expenses and reduce hours,” she said, adding that staff members have flexed hours without compromising patient care. “Marshall needs to stay focused on the 2013 organizational goals and any further developments with our affiliation partner. We expect Marshall will assist the board with a smooth transition, as directed by the New River Board of Directors and CentraCare.”
Smith’s CEO evaluation appeared on the Dec. 13 agenda as a consent item; it was unanimously approved as part of that agenda after Doerr read her summary.

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