Doctor's Orders

One year at the helm of the West Penn Allegheny Health System, Dr. Christopher Olivia, M.D., M.B.A., aims to unify the organization and improve health care in Western Pennsylvania.



(page 1 of 2)

He's a trim guy, a runner. Not an extra pound on him. He has great dark eyes and repeats the points he wants to make like a good teacher.
Dr. Christopher T. Olivia, 46, who has just completed his first year as president and CEO of the West Penn Allegheny Health System (WPAHS), is not comfortable being called "Dr. Olivia." "Call me Chris," he says. The "Dr. Olivia" designation makes him think someone is talking to his dad, a retired physician.

Olivia came to Pittsburgh for two reasons. "I really like the people here. We have excellent nurses and doctors. Medicine starts with that... The No. 2 reason is to prevent the monopolization of health care services in Western Pennsylvania." And he says the latter without referring to the University of Pittsburgh Medical Center (UPMC), the 20-hospital burgeoning medical system that has gobbled up most of the Pittsburgh-area hospitals in the past several decades - and has expanded internationally with facilities in Italy, Ireland and Qatar and other operations in the United Kingdom.

Olivia states, "UPMC is a fine institution." But he also stresses repeatedly that WPAHS is "in Pittsburgh, for Pittsburgh." One major difference he sees between the two systems is about whether excess earnings from a health care system such as UPMC should be used to fund college scholarships for local students or be returned to the health care system to fund research, improve services and serve those who have little or no health insurance. "It's all been about money and excess earnings that go into things outside of health care," he says, referring to the Pittsburgh Promise, UPMC and its $100 million commitment to fund college costs for Pittsburgh city and charter high school graduates.

Scholarships, Olivia acknowledges, "are all good from the standpoint of societal good, but they have nothing to do with health care." That mission," he says, "has to be about taking care of people; about educating [medical] students, residents, fellows; investing in research and taking proceeds and reinvesting in programs to cover the uninsured. The debate needs to be shifted away from money."

People always ask Olivia how he feels about competing with UPMC. He says when he wakes up in the middle of the night, he's not thinking about "what UPMC is doing." He's worrying about what WPAHS "is doing and not doing."

What kind of guy is Chris Olivia, the man who came to town to play David against the Goliath of UPMC? Read his bio and you'll guess he's a hard-working, pragmatic, clear-thinking leader. He's "old-fashioned" enough, he says, to read hard-copy newspapers daily: The Wall Street Journal, The New York Times, Pittsburgh Post-Gazette, Pittsburgh Tribune-Review. He likes watching movies with his wife, Laurie, and sons, Joseph, 10, and Alex, 8. He admits to bleeding blue and white for Penn State, his alma mater.

Meanwhile, back at the challenging task of reorganizing a lot of diverse organizations into a single working entity: Olivia finds the job as exciting as a roaring Nittany Lion. WPAHS has developed a mission statement over the past year that Olivia feels it can achieve, including "quality health care, personalized service for patients and educational programs and research that support those programs." The vehicle to get there, he maintains, is "financial stability." His team has found $100 million in cost-saving and revenue enhancements by eliminating duplication of back office work, renegotiating contracts (including one with Highmark) and considering more flexibility in staffing, though not all have been implemented.

Olivia has guided a reorganization of the medical system's senior management with appointments of vice presidents and medical officers in each hospital. He's also done some heavy-duty recruiting from UPMC. "We've been blessed," he says when talking about the hiring of Dr. Peter Linden, a critical-care specialist who handles patient care in the intensive-care unit; Dr. Michael DeVita, a medical ethicist; and Dr. Kasum Tom, a transplant surgeon, who joined Dr. Ngoc Thai, director of abdominal transplantation, who left UPMC a year ago.

"Physicians will vote with their feet to be part of something they have a bigger say in," Olivia told the Pittsburgh Business Times in February. And three more UPMC physicians did just that in early March: Dr. Steven Bowles, senior critical-care specialist at UPMC Mercy, and critical-care fellows Dr. Christopher Brackney and Dr. Subbarao Elapavaluru.

Both Allegheny General Hospital and the Western Pennsylvania Hospital, original components in the founding of WPAHS, were recently listed among the 100 top hospitals for cardiovascular care in the country by health care analysts at Thomson Reuters. They were the only Pittsburgh hospitals so recognized. Substantial WPAHS strengths Olivia cites are in transplantation, cardiovascular care, neuroscience, trauma and critical care, bone-joint disease, cancer and the West Penn Burn Center. The Pittsburgh Pirates medical staff, headed by Dr. Patrick DeMeo, director of sports medicine at Allegheny General and the key physician in bone-joint disease, was named the best in the nation by major-league baseball.

Discussing hospitals that struggle financially, Olivia points out the disparities between Eastern and Western Pennsylvania in the payment of Medicaid. "Hospitals in Philadelphia of the same ilk, of the same background, the same team or non-team status are paid substantially more than hospitals in Western Pennsylvania" because of an initial flawed formula, he says. Describing the problem, Olivia goes on to explain:

"Originally, the program was based on what hospitals and doctors charged. And in 1987 [with introduction of Medicaid], the state fixed the reimbursement based on that historical charge rate [and] inflated it relatively equally for hospitals over the next 22 years. So that if you have a disparity when you start, and inflate everybody's reimbursement 2 to 3 percent each year, that compounding effect will widen that disparity over time. And that's what happened. And so when you look, we believe there could be as much as $100 million, maybe in excess of that, largely because of the East versus West disparity."

For example, Bryn Mawr Hospital, in one of the most affluent areas in the state, is paid more than Armstrong County Hospital. Olivia sees that disparity as having hurt hospitals depending on Medicaid such as St. Francis, which has closed, and Mercy, now part of UPMC, as well as West Penn. Such distributions he terms simply as "unjust."

According to the American Hospital Association, hospitals nationwide have slipped 2 percent to 3 percent in volume of business. People are putting off elective surgery in today's economy, but says Olivia, "Our volumes [for all surgeries] are actually up this year. So that's a good sign." However, he told the Pittsburgh Tribune-Review in March that the recession and decrease in numbers of people with health insurance will cut into profits. Charity care, given to those who can't pay, went up by 20 percent in the first half of the fiscal year, he noted.

One key area of focus for Olivia is the integration of the WPAHS hospitals and the creation of a more cohesive system, including the reorganization of the leadership structure.

When Olivia's predecessor at WPAHS, Jerry Fedele, resigned in July 2007, one reason for his departure could have been not achieving that goal. A Pittsburgh Post-Gazette report at the time said that a group of Allegheny General physicians approached WPAHS chairman David McClenahan "with concerns about the CEO." The article cited they "lacked confidence" in Fedele's "ability to complete the long-promised, full-fledged consolidation" of Allegheny General and West Penn Hospital.

(According to IRS forms, Fedele earned $861,000 at the time of his resignation. A WPAHS spokesman declined to comment on Olivia's compensation.)

Olivia, on the other hand, was praised by WPAHS temporary president/CEO Keith Smith as having "a strong penchant for relationship building." Smith praised Olivia's "ability to bring people and programs together in a most cohesive and productive fashion."

A few weeks after Olivia started on the job, he was faced with a more immediate challenge - a financial one. WPAHS is cooperating with the Securities and Exchange Commission, which is conducting an inquiry into a $73 million writedown - which means "reducing the book value of an asset because it is overvalued compared to the market value," according to Investopedia - in its financial reporting, caused by overestimating patient revenue. That resulted in a reduced bond rating, which was recently raised to BB again.

Olivia has had success in handling financial problems in the past. He came to WPAHS from Cooper Health System in Camden, N.J. Recalling his arrival at Cooper, Olivia recently told the Pittsburgh Post-Gazette, "We had hours of cash on hand... We were in danger of not making payroll." That system faced bankruptcy when he took it over. It was located in "one of the poorest, most violent cities in America," he says.
 

Edit ModuleShow Tags
Edit Module

Edit ModuleShow Tags

Hot Reads

Top 10 Things to Do in Pittsburgh in April

Top 10 Things to Do in Pittsburgh in April

This month's best bets in the ’Burgh.
Take a Hike: 10 of the Best Trails in the Pittsburgh Area

Take a Hike: 10 of the Best Trails in the Pittsburgh Area

Lace up your sneakers or hiking boots and head outdoors for 10 great walks for spring.
412 Food Rescue: Revolutionary Repurposing

412 Food Rescue: Revolutionary Repurposing

Local nonprofit organization 412 Food Rescue is taking food that otherwise would be tossed aside and connecting it with those in need through-of-the-moment technology.
Spring Fashion: The Height of White

Spring Fashion: The Height of White

Fashion is white haute this spring with the best looks from local stores.
Edit ModuleShow Tags

The 412

Celebrating 75 Years: Connecting History with Community

Celebrating 75 Years: Connecting History with Community

The Heinz History Center’s World War II traveling exhibit focuses on western Pennsylvania’s ties to history.
Pittsburgh Parks Conservancy's Meg Cheever To Step Down

Pittsburgh Parks Conservancy's Meg Cheever To Step Down

The nonprofit's founding President and CEO will leave her position early next year.
Pittsburgh Pens' Spouse is ‘Hockey Wife’ On and Off Camera

Pittsburgh Pens' Spouse is ‘Hockey Wife’ On and Off Camera

After a Stanley Cup-winning season for the Pittsburgh Penguins, one player’s wife is working on her own claim to fame.
What to Do with Unused Churches in Pittsburgh

What to Do with Unused Churches in Pittsburgh

A Pittsburgh preservation group says there are approximately 30 unused churches in Allegheny County.
Edit ModuleShow Tags
Edit ModuleShow Tags

Hot Reads

Top 10 Things to Do in Pittsburgh in April

Top 10 Things to Do in Pittsburgh in April

This month's best bets in the ’Burgh.
Take a Hike: 10 of the Best Trails in the Pittsburgh Area

Take a Hike: 10 of the Best Trails in the Pittsburgh Area

Lace up your sneakers or hiking boots and head outdoors for 10 great walks for spring.
412 Food Rescue: Revolutionary Repurposing

412 Food Rescue: Revolutionary Repurposing

Local nonprofit organization 412 Food Rescue is taking food that otherwise would be tossed aside and connecting it with those in need through-of-the-moment technology.
Spring Fashion: The Height of White

Spring Fashion: The Height of White

Fashion is white haute this spring with the best looks from local stores.
Restaurant Review: Pork & Beans

Restaurant Review: Pork & Beans

The latest restaurant from the Richard DeShantz Restaurant Group brings Texas-style smoked meats and more to Downtown.
Daytripping: Brave the Cave

Daytripping: Brave the Cave

Go subterranean at Laurel Caverns, the largest cave in Pennsylvania.
Edit Module
Edit Module

Edit ModuleShow Tags

On the Blogs


Celebrating 75 Years: Connecting History with Community

Celebrating 75 Years: Connecting History with Community

The Heinz History Center’s World War II traveling exhibit focuses on western Pennsylvania’s ties to history.

Comments


All the foodie news that's fit to blog
Kamayan Feast Coming To Kaya in the Strip District

Kamayan Feast Coming To Kaya in the Strip District

Executive Chef Ben Sloan will offer a festive, eat-with-your-hands spread on Tuesday nights.

Comments


Not just good stuff. Great stuff.
Five Inexpensive But Memorable Date Spots in Pittsburgh

Five Inexpensive But Memorable Date Spots in Pittsburgh

These spots are tailored for couples who are looking for a simple, chill night out on Valentine’s Day (or any other day). If your significant other isn’t the type to be wooed by expensive wines and chocolates, this is the list for you.

Comments


The (Very Good) Brewery You Should Be Patronizing in Homestead

The (Very Good) Brewery You Should Be Patronizing in Homestead

Voodoo Brewery is an enticing alternative to the many chains in and around the Waterfront.

Comments


Mike Prisuta's Sports Section

A weekly look at the games people are playing and the people who are playing them.
Steelers’ Philosophy Back on Display After Hightower Flirtation

Steelers’ Philosophy Back on Display After Hightower Flirtation

Even as they entertained Dont’a Hightower for nearly seven hours during a free-agent recruiting trip to the South Side, the Steelers never lost sight of who they are or what they’re all about.

Comments


Style. Design. Goods. Hide your credit card.
Turn Your Bath into a Spa with These Oils

Turn Your Bath into a Spa with These Oils

The miniature bath- and shower-oil collection from Aromatherapy Associates makes every shower a luxury experience.

Comments


The movies that are playing in Pittsburgh –– and, more importantly, whether or not they're worth your time.
The CMU Film Fest Opens with One of 2016's Best

The CMU Film Fest Opens with One of 2016's Best

Reviews of two films appearing at the 2017 Carnegie Mellon International Film Festival: "I, Daniel Blake," and "The Eagle Huntress." Plus local movie news and notes.

Comments


Everything you need to know about getting married in Pittsburgh today.
#Wedding: What’s Trending in the Wedding World

#Wedding: What’s Trending in the Wedding World

Married couples talk hashtags — and why they used them at their weddings.

Comments


Weekly inspiration for your home from the editors of Pittsburgh Magazine
Get the Scoop Behind One of Pittsburgh’s Most Unique Condos

Get the Scoop Behind One of Pittsburgh’s Most Unique Condos

The Carnegie Museum of Art’s new exhibit features the works of architect Arthur Lubetz and Front Studio, including the vibrant Glass Lofts Building in Garfield.

Comments


The hottest topics in higher education
New Club is a Hit at Thiel College

New Club is a Hit at Thiel College

The Outdoor Recreation Club becomes the newest student organization at the college.

Comments