Administrative Changes

Dear Beacon Associates,

As a result of the South Bend Clinic transaction not moving forward, there is need for a full-time administrative President of the Beacon Medical Group. With over 235 physicians in more than 60 locations, along with all the impending changes involved in healthcare reform, I have decided to begin a national search for this new Beacon Medical Group President position. Over the next six to nine months of the search process, we will be developing qualifications and characteristics for this position and plan to interview both internal and external candidates.

I have asked Mike O’Neil, Beacon’s Chief Administrative Officer, to assume the primary responsibility for developing Population Health Management strategies. Mike has served as administrative leader of the Memorial Medical Group for eight years and the Beacon Medical Group for the past two years. Population Health Management is such a high priority for our future and this leadership role is in sync with Mike’s other administrative duties in Managed Care, Home Health and worksite clinic development.

During this search process, Kreg Gruber, President of Memorial Hospital of South Bend will serve as Interim President for the Beacon Medical Group. Kreg has an extensive range of leadership talents and will ensure the continued growth and development of the medical group, especially as we further prepare for implementation of health care reform and Population Health Management. Although Kreg will spend most of his time with the Beacon Medical Group, he will retain several Memorial Hospital initiatives such as the development of the Children’s Hospital, Children’s Miracle Network, Vascular Institute and Regional Cancer Program Development.

In order to enable Kreg to serve as interim leader of Beacon Medical Group, I have asked Steve Huffman, Beacon’s Chief Information Officer, to step-in and serve as Interim President of Memorial Hospital during the search process. Steve has enormous leadership abilities and will keep Memorial growing and improving during this period of change and transition. Mark Warlick will be interim CIO and reporting to Steve Huffman. These are wonderful growth opportunities for Steve, Kreg, Mike and Mark and I appreciate your full support and encouragement throughout the coming months. The changes will become effective July 1st.

With highest regards,

Philip A. Newbold, CEO