Providence has named Erik Wexler as the nonprofit health system’s next chief executive and president, effective Jan. 1.
Wexler, who has extensive ties in Orange County, will lead one of the nation’s largest healthcare systems that has 51 hospitals and 122,000 employees, including 34,000 physicians.
Wexler, the current chief operating officer, originally joined the nonprofit Catholic health system in 2016 as regional chief executive of Providence Southern California, where he oversaw three of Orange County’s seven largest hospitals, which collectively had 418,000 outpatient visits last year.
“After the eight years of being here, this opportunity to potentially expand my impact is one that inspires me very deeply,” Wexler told the Business Journal.
Wexler will replace Rodney Hochman, who announced his retirement on May 15 after eight years in the role. Hochman will stay on as CEO emeritus following the transition, according to the announcement.
“Erik’s focus on Mission and his track record of successful transformation through collaboration will serve Providence well, and I am thrilled that he has answered the call to serve as our next president and CEO,” Hochman said in statement.
$712M Expansion
Providence’s hospitals in Orange County are undergoing expansion.
In April, Providence St. Joseph Hospital held a grand opening for a four-story, 137,000-square-foot women’s health facility. A 9,000-square-foot imaging center, which will house imaging and breast health services under roof, is also scheduled to open at the Orange campus later this year.
Providence Mission Hospital is spending $712 million to expand its operations in South Orange County, which was first announced in 2022. The seven-year investment will result in two new multi-specialty medical centers and a new patient care tower with roughly 100 beds.
The tower will enhance the neuroscience center, cardiovascular programs and maternity services.
The design process is “well underway,” according to Wexler. Providence also launched a capital campaign to help fund the project.
There is no set completion date as of yet, but Wexler said it will likely take “several years” before construction is finished.
“This is a growing community, so the demand for care there is increasing, and we want to be ready to meet that demand,” Wexler said.
Overall, the system is spending most of its energy renewing its existing facilities, Wexler said.
Providence reported that the 2023 operating revenue climbed 8.7% to $28.7 billion with pro-forma operating earnings before interest, depreciation and amortization (EBIDA) of $502 million, up from a $6 million EBIDA loss the year before.
However, operating expenses increased 7.3% to $30 billion, according to its annual report. The increase in operating expenses was attributed to wage increases, higher supply costs and higher costs to serve patient volumes.
In response to increasing costs of healthcare, Wexler said there’s a “misconception” about who’s responsible.
“Bringing down the cost of care is a team sport,” Wexler said. “It’s also has to be on the commercial payers, manufacturers and suppliers.”
Providence’s 18 hospitals in California accounted for 32% of its revenue last year.
Former Tenet CEO
Wexler has 30 years of experience in numerous healthcare roles.
Prior to Providence, Wexler was regional CEO for the northeast region — Massachusetts, Pennsylvania and Illinois — for Tenet Healthcare Corp., which has a $13 billion market cap (NYSE: THC).
He also worked at Vanguard Health Systems Inc., which was acquired by Tenet for $4.3 billion in 2013, and previously was senior vice president of Baltimore, Maryland-based LifeBridge Health as well as president of its Northwest Hospital.
Originally a New Jersey native, Wexler attended the University of Hartford in Connecticut for both his bachelor’s and master’s degree.
Wexler spent five years based out of Providence’s Irvine offices before becoming COO. He said he was in OC during the pandemic and was impressed with the response from local providers.
“It was a coming together of public and private organizations to ensure that we stabilize those who were at risk of getting sick,” Wexler said.
Despite Providence being based out of Renton, Washington, Wexler said he spends about 150 days out of the year in the field.
“Our other corporate office is in Irvine, so people in Orange County and California as a whole can expect to see me,” he said.
