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Published on: 10/1/2007
Last Visited: 1/5/2008
James Tally is leaving Children's Healthcare of Atlanta, and COO - and BTB 2007 Woman of Excellence honoree - Donna Hyland is on the short list to replace him.
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James E. Tally has led CHOA from its creation in 1998 through the difficult merger between Egleston Children's Health Care System and Scottish Rite Children's Medical Center, establishing a single culture for the organization that has vaulted CHOA to among the best regarded children's medical facilities in the country, most recently being ranked in late August as No. 14 in U.S. News & World Report's "America's Best Children's Hospitals."
Prior to being named CEO of the combined hospital system, Tally was chief administrator and later CEO at Scottish Rite from 1984 to 1997.He is well-regarded in the community and has been responsible for much of the organization's success over the past decade, although he's quick to deflect any accolades onto the board, other executives and frontline employees.
Tally announced in July that he's stepping down sometime next year after a replacement has been named.He turns 65 later this month, and while numerous projects always swirl around an organization as large as CHOA, the culmination of a five-year, $265 million capital campaign provides a good opportunity to step back and let someone else take over, he says.
Today, CHOA is a three-hospital, 538-licensed bed facility with more than 6,800 employees and 20,000 volunteers.Portions of the campaign funds will be used to pay for critical infrastructure improvements, including more than $30 million for upgrades at Hughes Spalding, which CHOA took over management of from the cash-strapped Grady Health System in February 2006.Currently, more than $250 million has been raised.
CHOA provided more than $81 million in un-reimbursed care last year, accounting for three out of every five pediatric inpatient Medicaid cases in the Atlanta area.The biggest challenge the new CEO will face, Tally says, will be dealing with the ongoing financial challenges of running the health care system.
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Following in the footsteps of such a long-serving and effective leader as Tally can be a challenge in itself, says Christopher M. Kane, partner in the health care practice at Tatum LLC, the executive services and consulting firm based in Atlanta.
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"Tally's tenure as CEO is unusual in an industry with an increasingly demanding business environment."
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But in cases of long executive tenure such as Tally's, "Frequently, the internal candidate does prevail," Kane says.
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Tally expects the CEO search will take about six months, culminating in a selection in the first quarter of 2008.He has no part in the process, although, he says, "I expect my opinion will be solicited by the board at some time."He says the next CEO must be a relationship builder and a visionary who can create and sustain important ties to the community and who focuses on providing the programs and services necessary to meet the needs of a growing and increasingly diverse community of children in Georgia.
Once the new CEO is selected, Tally will stay on for a few months to help smooth the transition, taking cues from the board and the new CEO on when to exit.
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