Quick Take
Lookout spoke with interim Watsonville Community Hospital CEO Tim Moran, who just finished his first two weeks into his new role, about what he hopes to accomplish throughout his six-month tenure.
The past 14 days at Watsonville Community Hospital “have been a lot of fun,” says interim CEO Tim Moran.
Moran told Lookout that throughout his first few weeks on the job, he’s been spending a lot of time talking with hospital staff — and mentioned that he recently had a “big meeting” with the facility’s nurses — along with getting to know each member of the five-person hospital board and community leaders.
In June, Moran, a veteran healthcare executive, was appointed by hospital leadership to take the helm of the facility following the departure of former CEO Stephen Gray.
Gray announced his departure in June, saying that he wanted to prioritize more time with his family. He took over as hospital CEO in 2023, when the facility became publicly owned after facing bankruptcy in 2022.
Moran will serve as interim CEO through Jan. 11, 2027, as the hospital board searches for a permanent replacement for Gray, but his tenure could be extended if needed. Board members last week outlined the timeline in which they hope to recruit and hire a permanent CEO, a role they expect to fill permanently in six months.
This is not Moran’s first time stepping into an interim position for Watsonville Community Hospital. He served a four-month stint as interim CEO for the facility in late 2011, under its previous management.
Lookout recently spoke with Moran about his prior leadership experience, first few weeks on the job, his approach to the role and what he’s focusing on throughout his six-month tenure leading the hospital.
This interview has been edited for brevity and clarity.
Lookout: I know more than a decade ago you were interim CEO at this very hospital. What makes this tenure different from the last?
Tim Moran: It’s a public hospital. It’s not investor-owned. This board wants to do the right thing for the community, not send money off to a corporate office. This is a board, where they’re all riding on the same surfboard — if you don’t mind that analogy, it’s relevant to Santa Cruz, I suppose. They all care about the same thing, and that helps me as a CEO to do the work that I think they want me to do.
I would have stayed actually 15 years ago when I came. I couldn’t work out something where I could afford to live here, so that was unfortunate. But, I’m able to come back and hopefully make a difference.
Lookout: You mentioned that you were retired already, and you came out of that for this role. What about this hospital made you want to step out of retirement?
Moran: I knew it was in trouble. I wanted to help. That was it, purely and simply. And I have been here. Had I not been here before, maybe I wouldn’t have taken an interest. But I had been here, and I thought it was a good facility that should have a good long future.
Lookout: How are you approaching this role, especially when the hospital right now is facing a lot of financial challenges and is in a moment of transition with its leadership?
Moran: My first goal is to identify and execute on growth initiatives. When we get online with the imaging technology [MRI and CT machines], we’re definitely going to go directly to the public, referring physicians on that. I’m working with a number of surgeons to see what we can do to get more of their work and identify some areas for new opportunities that will involve recruitment. That’ll take a little longer.
But while I’m here, I hope to be able to get some of this growth work in place because it has an immediate impact on the financial liability of the hospital. So, when the new guy comes in, he or she can move forward with some of those things, but also have the opportunity to pursue affiliations or things of that nature that might be valuable to us in the future.
Lookout: The hospital recently received a $10.6 million grant from the state. Are you up-to-date with that and what is that money going to be used for?
Moran: We’re utilizing a portion of that money for operating expenses that we’ve incurred — our accounts payable. And a portion of that, I want to be able to deploy to growth initiatives that’ll help improve the financial performance short term, and that would be things like investing in equipment that we can do surgeries with.
Also, I don’t have the exact date, but I think we’re anticipating funding from the Quality Assurance Fee program, which provides supplemental payments to hospitals with Medicaid or uninsured patients, that we’re supposed to be receiving — that’s behind schedule. I don’t know exactly when. I’m thinking somewhere around October.
Lookout: Do you think the $10.6 million grant is a big help for the hospital?
Moran: Yes, that was a very big help. It gives some breathing room for us to not just pay bills, but to advance the hospital. So, it definitely has made a difference.
Lookout: Based on the recent financial report from the chief financial officer, do you think the hospital is OK right now, financially?
Moran: I feel that the hospital is doing the best it can right now. I think we have to find ways to grow, and I think over the next six months it’ll be critical that we do.
Lookout: What is your overall goal — what do you hope to have accomplished for this hospital by the end of your tenure?
Moran: That we have increased our revenues through some of these initiatives I’ve talked about, which are directed at establishing financial stability and improving the ability of the hospital to be able to work with their employees and get the things that we need going forward.
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