Robert Allen has assumed the role of Chief Executive Officer for Pipeline Health System, LLC, as the company emerges from Chapter 11 bankruptcy today. Memorial Hospital of Gardena is part of the Pipeline system.
Allen brings more than three decades of executive-level experience in the healthcare industry to the CEO role. His experience includes roles at stand-alone facilities in both for-profit and not-for-profit organizations in the Southern California market.
Prior to joining the team at Pipeline Health as Chief Financial Officer in November 2020, Allen served as Global Group Chief Executive Officer of CHA Hollywood Presbyterian Medical Center. He also previously held CFO positions at Keck Medical Center of USC, Dignity Health, Valley Presbyterian Hospital, and Sherman Oaks Hospital & Health Center.
“It’s a privilege to take the helm of Pipeline Health as we begin a new chapter,” Allen said. “I look forward to a bright future for our four Los Angeles-area hospitals and our hospital in East Dallas as we continue to serve the underserved communities that count on us for care.”
Pipeline filed for Chapter 11 bankruptcy Oct. 2, and its plan to emerge was confirmed Jan. 13 by the United States Bankruptcy Court for the Southern District of Texas. Judge Marvin Isgur commented that completing the process in four months’ time was “remarkable.”
Allen worked closely with other executive leaders, legal experts and business consultants to work through a strategic restructuring process. The process included closing the sale of two hospitals in Chicago and developing a high-level strategic business plan that sets realistic financial goals to ensure the company’s future success.
In a memo sent today to employees and affiliated physicians, Allen wrote, “Hospitals across the country face similar financial challenges. You should take great pride in knowing that our company stands on solid footing now with a clear path forward. And I am proud – and grateful – that our employees and physicians have stayed with us, keeping their focus on delivering quality patient care throughout this period of uncertainty.”
According to a report published Jan. 30 by healthcare management consulting firm Kaufman Hall, U.S. hospitals saw “the worst financial year for hospitals and health systems since the start of the COVID-19 pandemic.” The recent report went on to say that approximately half of all U.S. hospitals finished the year in the red as growth in expenses outpaced revenue increases.
“Pipeline Health was not alone in suffering the impact of the pandemic,” Allen said. “Hospitals across the country face similar financial challenges. Skyrocketing labor costs and dramatic increases in supply costs have hurt small hospitals that are critical to the care of underserved community, including emergency care.”
Pipeline’s path forward includes a renewed commitment to quality care for every patient, according to Allen.
“That means providing the right care in the right place at the right time to every patient who comes to us and ensuring timely patient discharges. We also will focus on enhanced workforce management to care for the patients we serve and to enhance our critical relationships with our employees.”