April 18, 2006 - May 1, 2006
Volume XVII, Issue 8
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Watsonville Hospital CEO Kaylor Shemberger Resigns
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Watsonville Hospital CEO Kaylor Shemberger Resigns
Will Take Job with Korean Hospital Operator
After three years as CEO of Watsonville Community Hospital, Kaylor Shemberger announced his resignation effective Apr. 21.

Carol Schmoyer will work as the Interim CEO, a job she took prior to Shemberger’s hire. Community Health Systems of Tennessee bought the Hospital in 1988.

“I have enjoyed my time here in Watsonville. ... I’m going to be sorry to leave the area,” Shemberger said. “I’m also eager to get going on some new challenges.”

Shemberger currently lives in Watsonville, and will remain for the near future commuting to Southern California.

Shemberger said he had accepted a job as Executive Vice President of CHA Health Care Systems, a Korean-based company with four major hospitals in Korea and the newly acquired Hollywood Presbyterian in the Los Angeles area. The company also owns CHA Fertility Center in Los Angeles. The CHA Medical Group is led by Dr. Kwang Yul Cha, an internationally known fertility specialist, who completed graduate study at USC.

“I was very impressed with the health care facilities in Korea,” Shemberger said. “I think they have a lot of expertise and capabilities.”

Shemberger will help CHA develop a strategy to expand in the U.S., bringing along some of Korea’s health care delivery concepts.

“[I think] the typical consumer of health care in the U.S. is ready for some changes and improvements,” he said.

Shemberger said that at Watsonville, he was pleased to help expand the local physician base. He stressed that doctors in South County do good work and that physician access has improved in recent years. However, he notes that with lower reimbursement rates in Santa Cruz County, the challenge to retain and recruit doctors will persist.

He said that Watsonville Hospital will also likely continue to struggle to offset a disproportionate share of medically indigent patients in South County, although he sees the community changing.
“We are seeing income levels creeping up in South County,” he said.

In 2004, according to state reports, the 106-bed Watsonville Hopsital collected about $500 million in gross revenues, netting a $6.5 million loss, which resulted in some cuts in service last year in order “to keep the doors open.”


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