Lloyd Dean will retire as CEO of Dignity Health parent in 2022; successor being recruited

Lloyd Dean will retire in summer 2022 as chief executive officer for CommonSpirit Health, which operates six hospitals in the Sacramento region under its Dignity Health division.

“It’s been the job of my life, and I cannot overstate how much I have enjoyed every moment of it nor how much I believe in the future of CommonSpirit Health,” Dean said “It’s been such a privilege to be part of Catholic Healthcare West and Dignity Health, and to have brought that organization together with Catholic Health Initiatives to create CommonSpirit Health.”

Dean shepherded that merger along with his counterpart, former CHI CEO Kevin Lofton, who retired in June 2020 as co-CEO of Chicago-based CommonSpirit Health.

“During his 22 years of service, Lloyd has been one of our country’s leading voices for expanding access to quality health care,” said Tessie Guillermo, chairwoman of CommonSpirit’s board of stewardship. “He was a driving force behind establishing and growing CommonSpirit into one of the country’s largest, most diverse and leading health systems. Lloyd steered our organization through one of the most important periods for health care in our country’s history, and we will forever be grateful for his leadership.”

The board has begun a process to recruit Dean’s successor, including contracting with executive search consultant Russell Reynolds Associates.

CommonSpirit noted in a news release that it has more than 1,500 care sites, 140 hospitals and 150,000 employees and physicians in 22 states. In the capital region, Dignity Health runs Mercy General and Methodist Hospitals in Sacramento, Mercy San Juan Medical Center in Carmichael, Mercy Hospital of Folsom, Woodland Memorial Hospital and Sierra Nevada Memorial Hospital in Grass Valley.

“Throughout our 100 year history, our caregivers and hospitals have shown an amazing commitment to being there for our patients and communities,” Dean said. “I remain laser-focused on providing care to our patients and communities, advancing our integration as a single organization to achieve better outcomes and lower costs and meeting with policy makers to create a regulatory environment in which providers can serve their communities for decades to come.”

CommonSpirit reported operating income of $998 million for the fiscal year that ended June 30, compared with an operating loss of $550 million in its 2020 fiscal year. Those results include revenue from the taxpayer-funded CARES Act and a one-time sale of some joint venture shares. Without that money, CommonSpirit posted a loss of $215 million.

The Sacramento region is seeing a change in leadership at two of its most prominent local hospital companies, as Sarah Krevans announced in late September that she was leaving as CEO of Sutter Health.