oone Powell, Jr., was born on
February 9, 1937, in Knoxville, Tennessee (Figure 1). His
family moved to Fort Worth when he was 5 years old and to
Dallas when he was 8 years old. He graduated from public
high school in Dallas in 1955 and from Baylor University
in Waco, Texas, earning a bachelor of business
administration degree, in 1959. He received a master of
public health degree from the University of California at
Berkeley in 1960. After completing a year of residency in
hospital administration in Memphis, Tennessee, he went to
Hendrick Medical Center in Abilene, Texas, rising at age
33 to president and chief executive officer (CEO) of that
medical center. In 1980, at age 43, he became president
and CEO of the Baylor Health Care System, which he
created and where he served until April 2000, when he
became chairman.
Mr.
Powell has received a number of honors for his work. He
was recognized by Business Week in 1990 as one of
the 5 best health care executives in the USA. He holds
honorary doctorate degrees from Abilene Christian
University, Dallas Baptist University, Hardin-Simmons
University, and the University of Manila and an honorary
doctor of law degree from Baylor University. He was a
recipient of Baylor University's Distinguished Alumni
Award in 1991. He is past chairman of the board of
trustees of the national Young Life organization, a
fellow of the American College of Healthcare Executives,
a member of the board of directors of Abbott
Laboratories, and past chairman of the Healthcare
Leadership Council. In 1999, Mr. Powell was appointed by
Governor George Bush to the Blue Ribbon Task Force on the
uninsured. He was named chairman of the Health Industry
Council, Dallas/Fort Worth region, in February 2000. He
is married to the former Peggy Hogan. They have 3
children and 6 grandchildren.
William Clifford
Roberts, MD (hereafter, WCR): I am speaking with Mr.
Boone Powell, Jr., in my home on August 18, 2000. Boone,
I appreciate your willingness to speak to me and
therefore to the readers of Baylor
University Medical Center Proceedings. Could
we start by discussing your upbringing, your mother and
father, and your siblings?
Boone Powell, Jr.
(hereafter, BP): My family arrived in Fort Worth,
Texas, when I was 5 years old, and 3 years later we moved
to Dallas when Dad went to work at Baylor. He had been a
premed student at the University of Tennessee during the
depression and had wanted to be a doctor, but he could
not find a way financially to go to medical school and
his family could not help. He was with the Federal
Housing Administration, initially in Washington, DC, and
then in Fort Worth, when he heard about an opening at
Baylor in the business office. The CEO of Harris in Fort
Worth encouraged him to apply for the position. He was
quickly promoted to assistant administrator at Baylor.
Shortly thereafter the administrator resigned and Dad,
after 3 years at Baylor, became the CEO (Figure
2).
There were no programs or formal ways of being prepared
to be a hospital executive during those days. Dad learned
on the job and loved it.
In 1942, when the medical
school relocated from Dallas to Houston, Baylor was not
in very good shape. The facilities weren't good. Dallas
was growing, and new facilities were needed. The Truett
Hospital opened in 1950 or 1951. It was very advanced for
that era. (That hospital has since been updated several
times, and it's still very much in use today.) In
addition, a number of Baylor's outstanding physicians had
moved to Houston with the medical school. The physicians
wanted to recruit only the very best physicians. They
figured that a way to accomplish that goal was to
reinstitute a strong teaching program. The first major
step was getting Dr. Ralph Tompsett to come to Baylor. He
was a distinguished internist who served as chief of
medicine at Baylor for a long time. He was followed by
Dr. John Fordtran in 1979. They and other
leaders put much work into this rebuilding effort. Among
others, Dr. Mike Reese was enthusiastic about this
challenge. Dr. Reese subsequently built the largest
medical oncology group in the USA. He spent considerable
time recruiting medical residents and medical students to
Baylor. He was able and convincing. Recruitment is easy
when things are pretty strong, but it was not always that
way. The folks who come later into an organization's life
don't always realize what it took to get it that way.
What impressed me, Bill,
was that the parties who are very important in running a
successful medical center--the physicians, trustees, and
management--came together to rebuild it and in doing so
set some very high standards. Several things happened as
a result. They put into place something that has been
carried forward to this day: development of very strong
medical staff leadership. The way that our medical staff
physicians are selected for leadership posts is more
comprehensive than what I have seen outside the hospital.
That process has served the institution very well. I have
a lot of admiration for the vision of the physicians,
trustees, and management group--the way they set
standards and then worked toward fulfilling them. It was
clear to me when I came in 1980 that Baylor had a
commitment both to superb clinical care and to clinical
training. Both are part of our culture. With all these
changes in health care, we try to find ways to continue
to support our educational mission. That started in 1948.
Dad came in 1946.
In the meantime, I was
growing up. We came to Dallas when I started the third
grade. I graduated from Woodrow Wilson High School. When
I left for college, I was pretty determined not to be a
hospital executive; I was going to go into banking or
law. It was no disrespect for Dad. I just wanted to do
something different. About halfway through Baylor
University, however, I decided on health care. Neither my
brother, 10 years younger than I am, nor my sister, 5
years younger, had any interest in health care. I was the
oldest of the 3 children, and I was surprised that I
ended up in health care.
WCR: What year
was your father born?
BP: I think he was
born in 1911. He was 84 when he died in 1996.
WCR: What year
was your mother born?
BP: She was 2
years older than Dad was, so she was born in 1909.
WCR: When were
you born?
BP: February 9,
1937.
WCR: What was
your father's background? Where did he grow up?
BP: He grew up in
Etowah, Tennessee, a small town east of Knoxville. My
mother grew up in Lake City, Tennessee, a bit west of
Knoxville. There were 9 children in Dad's family and 4 in
my mother's family. Both granddads were in the mercantile
business (stores). Neither was a person of financial
substance.
WCR: Where was
your father in that hierarchy of 9?
BP: He was in the
middle.
WCR: And your
mother?
BP: She was second
of 4.
WCR: You were
actually born in Knoxville, Tennessee. What was your
father doing at that point?
BP: That is
correct. He met Mom when he was going to the University
of Tennessee while working part-time at the Catholic
hospital, St. Mary's, where she was in the school of
nursing. When they got married, Mom and Dad were living
at Norris Lake just outside of Knoxville. He was the
first superintendent of that park at Norris Lake, which
was part of Tennessee Valley Authority. When I was a very
small child, I can remember being in the motor boat as he
went around to check on things. After that he went with
the Federal Housing Authority, and we moved to
Washington, DC, and were there for a while. He was then
transferred to Fort Worth to build elementary schools.
The school I went to in the first grade was one of the
projects he had worked on.
WCR: While you
were growing up, you worked periodically at Baylor
University Medical Center (BUMC) yourself. What did you
do?
BP: My first job
was on Saturdays in the pharmacy department. I helped
with this newfangled pneumatic system. It saved a lot of
time. Employees previously had to walk down to the
pharmacy department to get prescriptions. My job was to
take the prescriptions that were filled, pack them well
with newspaper, put them in the tubes, dial the nursing
station number, and send them up. I'd work about 10 or 12
hours on Saturdays. As I got older, I worked in the
summers in the dietary storeroom, putting up boxes and
bringing big boxes of staples from the storeroom to the
kitchen.
WCR: So you were
getting a pretty good smell of the hospital
environs?
BP: Yes, I was
down in the bowels of it. It was interesting. The people
were wonderful. I talked to the chefs in the kitchen. I
worked hard. I almost bent over backward not to be
perceived as trying to do anything special because of
being the CEO's son.
WCR: Where did
you live growing up?
BP: We lived in
Lakewood.
WCR: What was
home life like as you were growing up?
BP: Dad was always
busy. Mom was a stay-at-home mom. My life revolved around
sports. I was very active in the youth group at the First
Baptist Church. I had a lot of friends there. That was
very important to me. As a teenager, I got involved in an
organization called Young Life. We had a large group at
Woodrow Wilson High School. I was always occupied and
busy. Dad used to say that I didn't cause him 1 ounce of
concern while growing up. The principal reason was that I
was so engaged in things that I enjoyed, I didn't need to
detour.
WCR: What sports
did you play?
BP: I played
mostly basketball. I played a little bit of football in
junior high but didn't like the coach. The junior high
and high schools were right next to each other, and both
were big schools. It became clear to me that basketball
needed to be year round if I was going to have a chance
to make the team. We had spring training in basketball;
that was unusual at that time. I also played on church
teams.
WCR: How good
were you in basketball?
BP: I was a pretty
good shot. I couldn't jump too high. I could hit the
basket. In our home we just opened in Colorado Springs, I
built in an inside sports court with a basketball goal
for the grandchildren and for me. I still play people in
a game of horse and do okay.
WCR: How tall are
you?
BP: About
6'1"
WCR: Did you play
forward?
BP: Yes. I was a
normal-sized forward during that era. We had a 6'5"
center. The team that won the state championship was from
Dallas, and they had a 6'8" guy. We'd never seen
anybody that big.
WCR: You played
all 3 years in high school, and you were active in other
activities as well. What was home life like? Was your
father usually home at night for dinner?
BP: It varied. My
dad got up very early. That was his internal clock. It
allowed him to get a lot of things done and come back
early if he didn't have a meeting. Later, I realized that
these medical complexes absorb you to a certain extent.
You really have to fight to balance life. Dad had plenty
of pulls on him. He was active in Dallas, too. He was
usually at home for dinner, but he didn't have much time
to come to my sporting events, as I would have liked.
WCR: What kind of
person was he at home? Was he a good father?
BP: Yes, he was.
He was conscientious. There wasn't any question that he
loved the kids a lot. He was a good, solid character for
me to relate to. He fulfilled that role well. The only
deficiency that I thought about when I became a dad is
that I hoped that I could get to more events with my
children than he was able to do.
WCR: What about
your mother? What kind of impact did she have on you?
BP: Dad was a
type A guy. He was the chief. At family
reunions of his 8 siblings, we said that there were
9 chiefs. Mom was easygoing. I got a lot of
my temperament from her. She was patient. She would
chuckle at things. She didn't get stressed very much. Dad
was a hard driver. I certainly got some of my philosophy
from my dad, but I think I got my mom's patience and
temperament. She loved kids, and when the grandkids came
she was the most doting gal you ever saw. She was a
marvelous pianist too. She trained to be a concert
pianist. That is one reason the trustees at Baylor named
the dining room on the 17th floor of Roberts Hospital for
Mother. She played for 35 to 40 years at all kinds of
hospital functions (Figure
3).
You could tell her what you wanted to hear, and she could
just pull it out of the air without any written music.
WCR: She played
by ear. You always had a piano in your home?
BP: We did.
WCR: Did you play
a musical instrument?
BP: A little bit.
I played 2 or 3 things, but I didn't stay with them. I
took some violin, accordion, and piano lessons. I
couldn't squeeze it in because I was dribbling the
basketball too much.
WCR: You have a
large extended family with your father's 8 siblings and
your mother's 3. Did you have many family reunions as you
were growing up?
BP: Yes,
periodically. We drove to Tennessee to see the
grandparents every summer. We would go to one house for a
while and then over the mountain to the other house. We
also had some family reunions in the Smoky Mountains on
occasion. They were fun.
WCR: What do your
brother and sister do?
BP: My brother
works for Texas Utilities in East Texas. He lives in
Longview. My sister married a professor from the Baylor
College of Dentistry, who is now retired. She lives in
Dallas.
WCR: How did you
choose Baylor University for college? You were the first
one in your family to go to Baylor University.
BP: Some of my
friends in the church's youth group went to Baylor
University in Waco, and that had some influence. No one
ever asked me to go or tried to recruit me. I started
thinking about Baylor University when I was in high
school. I never had a second choice. I didn't visit
anyplace else. I just knew that was it.
WCR: The church
played a big role in your life from the beginning. Did
either your mother or father push that more than the
other?
BP: No. Dad was a
deacon at First Baptist. My mother played piano for a
Sunday school class. Young Life is a nondenominational
group. I joined it when I was 15 years old, and it had a
real positive influence on me. It was started by a Dallas
seminary student. When I was about 15, a professor at
Southern Methodist University invited me to go to a camp
in Colorado. He told me, Check with your parents,
and if you can go, I will drive you up in my station
wagon and come back and get you. And I will pay half of
your camp fee. So many boys took him up on his
offer that he had to make 2 trips from Dallas to
Colorado. I had such a fabulous experience at the camp in
1952 that I have been back often. It is only for
adolescents in high school. The 1-week camping experience
was incredible. When I was in college I did volunteer
work and actually had a Young Life club in a high school
in Waco. I wanted to help change the lives of a lot of
kids. I've been on the national board since 1983 and have
been chairman of it. I can't think of very many
organizations that have impacted kids more positively
than Young Life. It's been a key part of my life, and I'm
going to stay with it as long as I can.
WCR: Where is the
camp in Colorado?
BP: Buena Vista.
It is 100 miles west of Colorado Springs at the base of
the Collegiate Mountains. The camp sits at 8500 feet on
the side of Mount Princeton. That began my love affair
with Colorado, too. We have just built a home in Colorado
Springs. We enjoy Colorado, particularly in the summer.
WCR: I gather
your parents had a major impact on you as you were
growing up. Did you have any mentors in school or in
church who also had a major influence on you?
BP: I had some
wonderful sponsors of youth-group activities in church.
Several of them are still living. One of them, James
Cantrell, was on the BUMC board for 17 or 18 years during
my time here. He was president of the Baptist foundation
later in life. Bill Cox had an influence on me. Later,
when I got older I tried finding him, but I never did. I
wanted to thank him for introducing me to Young Life. He
was my Sunday school teacher at church and a youth
sponsor. An insurance executive who is still alive was a
sponsor on the basketball team, and he influenced me.
WCR: You had your
church, Young Life, and school with sports that kept you
extremely occupied from early on. What time did your
father wake up in the morning?
BP: He woke around
5 am. It wasn't uncommon for him to be at the office by 6
am. He would do some work and then he'd have breakfast.
We have lots of morning meetings. I have met for years
with a group of physicians each Tuesday at 6 am. I was a
night person for a long time, but I've been forced to be
more of a morning person. It's been fun.
WCR: How was
Baylor University for you? Did you enjoy it?
BP: It was right
for me. There were probably 5000 students at the time.
WCR: What year
did you go to Baylor?
BP: In 1955.
WCR: You
graduated in 1959. What did you major in? When you
entered Baylor University you had no intention of going
into the health care field?
BP: My interest in
Christian service and my interest in business were
developing simultaneously in my life. I was trying to
figure out how to make those things happen. I received a
general business degree.
WCR: When did you
decide that maybe the hospital is not a bad place?
BP: For me it was
a Christian calling. I feel like God has something for
each of us to do. The question is how you identify it. I
wanted to do business, and I wanted to do service. By the
end of my sophomore year I knew that both could be
fulfilled in a church-sponsored hospital. I even knew
then what kind of sponsorship of the hospital I'd like to
work in because it was consistent with how I was
developing as a person. During college I worked at the
hospital during the summers. I would meet the
administrative residents. I'd find out where they went to
school, how they liked their residency, etc. I realized
that going to graduate school would be important. I
considered 4 graduate programs and chose the University
of California at Berkeley. It surprised some that I chose
Berkeley.
WCR: Before we
get into that, it seems to me that Baylor University had
a major impact on you. You met Peggy there. How did you
meet?
BP: Our fathers
met before we did, and we didn't know it at the time.
Peggy's dad was a distinguished doctor in West Texas. He
was the epitome of a beloved physician. People could not
say enough good things about him. He and a friend built
the Malone-Hogan Clinic, a multispecialty clinic in Big
Spring, Texas. Peggy had a younger sister. Both of them
had had light cases of polio. Peggy's sister
had a more severe case than did Peggy and needed some
help. Dr. Hogan brought Peggy's sister to Baylor, and she
had to be in a full body cast after surgery for a long
time. While he was there, Dr. Hogan went down to meet the
hospital administrator, my father, to tell him of their
favorable experience at the hospital and to get
acquainted. They had several visits professionally when
Peggy was 13 or 14 years old. I met Peggy at the end of
my freshman year. A friend suggested that she might be
somebody I would like to date. It took a while for me to
get a date because she was booked up.
WCR: Had you met
her before that first date?
BP: I actually met
her at a church activity and then called her for a date.
By the end of the sophomore year we knew that we would
marry. We got married at the end of our junior year. That
was common during my era.
WCR: You were 21
years of age?
BP: Yes. She was
20.
WCR: Was she 1
year behind you?
BP: No. We were in
the same class. She's 5 months younger than I am. It made
it very nice as we got acquainted and got our families
acquainted to realize the story that I shared with you.
That was a pretty good confirmation. I had 2 good role
models: 1) my dad who was on track to build quite a
medical complex (I picked up somewhat how he did it and
also some of his philosophy) and 2) my father-in-law, who
shared his perspectives on things with me.
WCR: What was
your father-in-law's name?
BP: John Hogan.
The clinic there is still called by his last name. In
Abilene, we were halfway between the 2 sets of parents.
It was useful for me to see the building of the
multispecialty clinic and how they recruited doctors.
They did quite well for a community of that size. They
had some good physicians. Half of their patient base came
from Midland and Odessa. They would drive 40 to 60 miles
to come to the clinic.
WCR: How big a
town was Big Spring?
BP: About 30,000.
WCR: What kind of
physician was your father-in-law?
BP: He was general
practice oriented but did some surgery and later on in
his life did a lot of female surgery and female
counseling. Patients liked to discuss issues in their
lives with him. I thought the world of him. When we went
to his funeral, both Peggy and I learned something about
him that we had not known. He became a trusted advisor to
many people. He would take his prescription pad and
write--Go home and read Psalm 37 every day for 2
weeks and come back and we'll talk about it. He
incorporated body, mind, and spirit into his therapy.
WCR: Peggy's
family and your family were really on the same parallel
regarding religious activities and beliefs and how
important they were in your life.
BP: Right.
WCR: Did Peggy
have brothers and sisters?
BP: Just the one
younger sister.
WCR: Did any of
your teachers or other people at Baylor University have a
major influence on you?
BP: I had a
wonderful teacher, Dr. Longaker, who taught management in
the school of business. He and I became quite close. We
met a network of friends that we have maintained to this
day. We've often gone back to homecomings and sit
together or get together in the summer. We developed
lifelong friendships at Baylor. I had a very favorable
experience in college. We'd go to the football game at
Baylor in sports coats and ties. Not so at Berkeley. It
was quite different. The only thing I found in common
between Baylor and Berkeley was the fact that both
mascots were bears.
WCR: How did you
decide to go to the University of California at Berkeley
to do your postgraduate work?
BP: There were
about 12 programs in health care, and about 4 of them
were considered excellent--Chicago, Minnesota, St. Louis,
and Berkeley. They all had a different approach and a
different emphasis and were in different parts of the
country. If I hadn't gotten a business degree, I may have
gone to one of the other schools. Since I had the
business degree and since the University of California
had a very small program (we had 11 in my class) in the
School of Public Health, it appealed to me. We were
taught on a seminar basis and not by didactic lectures.
That appealed to me. Two residents that I had gotten to
know at BUMC and the one who subsequently stayed on the
staff at BUMC had gone to Berkeley and had had a good
experience. I also wanted to take some general courses in
the School of Public Health.
Berkeley required us to
have a year's experience before we could go to graduate
school. They allowed me to use my summer jobs at Baylor
Hospital to count toward that requirement. They required
me to spend a summer in one of the hospitals in the San
Francisco Bay area. I worked at the Marin General
Hospital. It was a totally different exposure to hospital
management than I had had at Baylor, and it was a good
experience. I went to Memphis, Tennessee, to the Baptist
Memorial Hospital system for my administrative residency.
It was the largest private hospital in the USA.
WCR: The whole
environment in Berkeley, California, is a lot different
than that in Dallas, Texas, where you grew up, and Waco,
Texas, where you went to college. How did Berkeley,
California, strike you and Peggy?
BP: Strange. We
liked it--it was just so different from anything we had
grown up with. Berkeley had many Nobel Prize winners on
its faculty. It is a marvelous intellectual university.
The culture obviously is different. It was an activist
campus, but not to the extent that it became later on.
One day I heard an active communist longshore union man
speak. I said, How in the world can you allow him
on the campus? We lived right off the main street
of Berkeley. While walking on this street during our
first 2 weeks there I saw 2 guys carrying on a
conversation. One was walking forward and the other was
walking backward so they could be face to face. I thought
to myself that I had arrived in California.
When we went to
California, Peggy was expecting our first child. I got to
know the administrator of the hospital at Berkeley where
she would go. He taught at the program. Our son was late.
At graduate school we only had a midterm and a final.
Mark was born on Monday evening, and my midterm started
on Tuesday morning. I was a little apprehensive about
that, but it all worked out.
WCR: You were in
the School of Public Health, but your degree was a
master's degree.
BP: It's actually
a master's in public health, but I was in the division of
health care management. There were probably 12 different
majors inside the School of Public Health.
WCR: Did you and
your family take family vacations when you were in high
school and college?
BP: I remember
several trips to the West Coast. Mom and Dad always had a
pet (a dog) that traveled with us.
WCR: So it was
not too strange for you to go to California?
BP: No. Every
organization, every group of people, has its culture.
Every state and city has its culture. That was my
introduction to the differences in major cultures. I'd go
back. We loved the Bay area. It was a broadening
experience.
WCR: Was there
anybody in school there, either a fellow student or a
teacher, who had considerable influence on you?
BP: I had met the
2 principal instructors before I went. I'd met them when
they were checking on residents at Baylor. I liked them.
That made it even easier for me to select the school. I
lost track of a number of them. We wanted to come back to
this part of the country. Most of them stayed out there,
so there has been virtually no connection.
WCR: Tell me
about your experience at Baptist Memorial Hospital.
That's where you went from Berkeley?
BP: It had a
wonderful reputation. I felt like I could get good
management experience there because I had known the CEO,
Dr. Frank Groner. I primarily went to Baptist Memorial
Hospital because of him. The year I was there he was the
president of the American Hospital Association. Dr.
Groner was a highly regarded executive in health care. He
happened to be a Baylor graduate. He was a fine person.
My dad's youngest brother was also vice president on the
administrative staff there. Baptist Memorial Hospital had
a big residency program, and I'd met several people who
had gone there as well. I was able to line up graduate
school and even my residency in advance.
WCR: This was
1959 to 1960. How big was Baptist Memorial Hospital at
that point?
BP: It was
big--probably 1500 beds. They had just moved into a new
15-floor tower. It had more beds than Baylor did. Dad
referred to it as his satellite. He and Frank
were good friends. Baptist Memorial Hospital was the
first hospital in the country that built a physician
office building connected to it. A couple of large
independent towers had been built by real estate people
to rent to doctors. They didn't fill up, but the ones
that the hospital built filled up. The key was the
connection to the medical center, either by overpass or
tunnel. I learned a very important lesson about that.
Baptist Memorial Hospital
had also gotten into the idea of satelliting.
They built a satellite hospital during that time. I
received a letter last week, Bill, that their satellite
in Germantown in eastern Tennessee is now the principal
part of their hospital. They are going to give the
hospital that I trained in to the University of Tennessee
Medical School, which is right across the street.
Dr. Groner was a
mathematical wizard. One thing that I wanted to learn
from him was his approach to financial management because
Berkeley didn't do much teaching in that area and Dr.
Groner was good at it. Just before I left to go to West
Texas, I went to him and said, Dr. Groner, tell me
one more time what is successful financial management of
a hospital. He said, It's very simple. Take
in more than you spend. I said, That's
it? He said, That's it.
WCR: When you
left Memphis, you felt very comfortable about managing a
hospital?
BP: I felt as if I
had had good preparation. I could find only 1 or 2 other
executives in Texas who had gone through formal graduate
training because it was still very new at that time. I
was 24 when I finished the training. I had thought I
would do some work in the military, but nothing was going
on.
WCR: This was in
1961.
BP: I was not
called to do any military service. I thought about doing
a residency in the military, but it wasn't necessary. I
was hired to be the first assistant to E. M. Collier, the
administrator of the hospital in Abilene. He was a
legend. E. M. Collier was a dearly beloved executive in
Texas. In fact, the hospital association named its annual
award for excellence in his honor. He was 63 and I was
24. I was hired to be his successor if everything worked
out okay. When Peggy and I were interviewed by the whole
board, they made it very clear that, although Mr. Collier
had trained a lot of people unofficially at the hospital
who were out running other hospitals in Texas, they
didn't want me to go. I was his assistant for 9 years,
and then when he retired I became the CEO (at age 33).
WCR: That was in
1970. How did it come about that you went to Abilene? You
must have had several options when you finished your
training in Memphis.
BP: Yes, there
were options. In that era, administrative residents
started out in a staff position. In those days we called
it administrative assistant. You would be on
staff for several years and then maybe get an assistant's
job. I knew that I'd like to come back to Texas if I
could. The circumstances were such that they let me come
out to interview, and instead of starting where I thought
I would, they put me into the number 2 position. Then Mr.
Collier was gracious enough to cover my mistakes as I was
growing. He gave me room to learn.
WCR: How big was
Hendrick?
BP: When I went
there it had 220 beds.
WCR: When you
left in 1980, how many beds did it have?
BP: It was about
450 beds when I left. It had converted itself to a
regional medical center with lots of diversified
activities.
WCR: You were
there for 19 years, and 10 of those years you were the
CEO. How did you and Peggy like living in Abilene?
BP: We absolutely
loved it. The people in West Texas are marvelous. People
are the natural resource of West Texas. There isn't
anything else out there but just wonderful people and
sunsets.
WCR: How many
people did Abilene have when you moved there?
BP: Probably about
70,000.
WCR: And you had
2 children by that time?
BP: Both our
second and third children were born there. Peggy had
grown up on the Plains, so she was very much at home.
West Texas was a new experience for me. I really did like
Abilene, which has 3 universities: Abilene Christian,
Hardin-Simmons, and Murray (Church of Christ, Baptist,
and Methodist). During those days the 3 universities were
polarized against one another. When they played football
the question was Whose side is God on? It was
that serious. They tried to bring theological
implications to the sporting events. With time I got to
know the leaders of all 3 universities, and we became
friends. The president of Abilene Christian University
headed up one of our capital campaigns, and that was good
for our community and us. Cooperation among the 3
increased. It was an encouraging thing to be a part of.
One of the last things I
did out there, Bill, was to take our 3-year diploma
school of nursing and convert it to a baccalaureate
program. We made an agreement among all 3 universities
and the medical center that all of us would sponsor the
new nursing program. Students could enter into any one of
the 3 universities for their first 2 academic years, come
to us for their clinical training, and then graduate from
the school that they had entered. They loved it and we
did too. It's one of the unique nursing programs in the
country, and it's a strong program. I got a lot of
satisfaction from that. One of the nicest occasions we
had was a dinner with the presidents of the 3
universities and their wives just before we left. It was
very special.
WCR: It sounds
like E. M. Collier was almost like a second father to
you. Is that right?
BP: He was
certainly a mentor. I watched him very carefully. Mr.
Collier was always fair with people. He would not take
advantage of anyone. I liked that. I watched him do that
in practice. He just loved the place. I thought that I
would stay there my entire career. I had no notion about
leaving. I enjoyed it that much. A lot of my best friends
were members of the medical staff, which is generally not
what happens between a hospital executive and its medical
staff. I still visit with a number of them.
WCR: You must
have had quite a few offers while in Abilene before
Baylor came along. It sounds to me like you were a boy
wonder--33 and head of the whole operation.
BP: I had a number
of opportunities to leave. I'll go back to the
fundamental thing: I felt like I was called
into this, and I felt like I knew where I was supposed to
be in the various years of my life. I didn't want to
leave, so I didn't give any serious consideration to the
offers.
WCR: It was nice
to be halfway between Peggy's original home and your
original home.
BP: It was almost
ideal.
WCR: How many
miles is it driving to Abilene from Dallas?
BP: 180 miles.
WCR: As you look
back over your Abilene experience, what accomplishments
are you most proud of?
BP: I liked the
opportunity to build a medical complex. The mandate
during the 1960s and the early 1970s was to develop the
most comprehensive set of facilities, programs, and
services that you could. In the 1960s, the mandate in
this country was to put a hospital in every community. It
was funded by the Hill-Burton program, and it was
encouraged by the Ford Foundation and others. I entered
health care in that era, before the regulatory
environments we have today and before Medicare. Whatever
your sights were, if you could do it then do it. After I
was on the job for only 2 weeks, I was given the chore of
building the first major addition of 84 private rooms.
WCR: That was
when you were 24 years old.
BP: I got a chance
to take what I had learned from Dad and the philosophy
I'd picked up from my physician father-in-law and see how
it worked. I had heard both my dad and Dr. Hogan speak
highly of the character of the physicians that they
worked with. I never had a second thought that I would
not enjoy working with physicians. I had respect from
them as long as I can remember, and I knew that it would
be difficult to accomplish very much if we couldn't find
ways to engage ourselves together. That is the way I
started practicing management. You don't get a chance
very often to get a report card to see whether that
approach works or not. I found out when I left that it
worked, and I got so many nice letters from the
physicians. I said, You turkeys, if you'd have told
me these things before I left, I might not have
departed. I thoroughly enjoyed it.
I learned of the
intensive care unit concept before most doctors did. I
asked them, What do you think about this concept?
It makes sense. You aggregate patients; you get
your staffing ratios in such a way that you can really
focus on care. Because I saw that concept before most of
them did, we got the intensive care unit. They went along
with it, and subsequently it became an important part of
medical care. Joel Allison was on the staff at
that time. He joined me 2 years after I became CEO.
I was getting into this
new discipline called strategic planning. How
do you do that? How do you engage people with you to set
some targets for your organization? I went to a program
sponsored by the American Management Association for
presidents and CEOs and found some useful ideas there.
Later on, my administrative staff and I left for a week
off campus and used a facilitator from the American
Management Association. We built quite a road map for the
medical complex. It gave me a great sense of comfort
knowing that when I left, work had been done that could
be further advanced by the next team.
WCR: How many
hospitals were in Abilene when you went there?
BP: Two. In the
early years we had a small Catholic hospital down the
street. Later on, a proprietary hospital was built that
was owned by several different companies. Some
competition developed. In those days there was a
distinction between the community hospital and the
for-profit hospital.
WCR: When you
were there in 1961 and were the assistant to the CEO, how
many other members of management were present?
BP: It wasn't
nearly as complicated to run those hospitals then as it
has become. I think there was maybe 1 or 2 others. There
was a financial officer. Most of the organization was
vested in the department heads. I became an operating
officer from the beginning. We had about 500 employees at
that time.
WCR: How many did
you have when you left in 1980?
BP: It was
considerably larger, and there were a lot of diversified
activities. A foundation was created. It was probably 3
times bigger when I left compared to when I came.
WCR: How did the
offer from BUMC come about?
BP: The gentleman
who followed my dad in 1972 as CEO was his longtime
assistant, David Hitt. David had been with Dad and Baylor
for 20+ years. Dave became the CEO, and my father did
other things such as creating the foundation. In 1979,
David decided to go with a consulting firm. At that
point, the board engaged a search firm to make a national
search. I was contacted early in the process, but I
thanked them and said I wasn't really interested. I
didn't talk to them for several months. I did give them a
name of somebody I thought would be good. Six months
later the search firm came back to me and said,
Will you not come up for an interview? I told
them I wasn't interested in doing that. I talked to my
wife and she said, I don't want to leave, but how
are you going to know what God wants you to do if you
don't at least look at it? I told the search firm,
I will come, but it's got to be very
objective. They said, It will be. You will be
interviewed by a committee of the board and 2 separate
medical staff committees. I said okay.
Four of us from around
the country came. I went through 2 days of meeting
certain medical staff, management, and some trustees and
then went back home. Later on they called and said,
We've narrowed it to 2 and we want the 2 of you to
come back with your spouses. The other fellow who
came was the one I had recommended. He and I agreed that
we were both happy with where we were and what we were
doing, so it wasn't a win-lose situation. We would both
go and see what happened. I finally got comfortable with
that because Dad wasn't in the process. He took himself
out early. Having those 2 medical staff committees review
all the candidates was really important to me because it
took away (at least in my mind) some of the accusations
that I would be selected because of the family
connection. I was selected at the end of 1979 and I came
on April 1, 1980.
WCR: Actually,
your father had not been CEO for 8 years when you came
here. How many beds were being used at BUMC in 1980 when
you came?
BP: It was full.
All the hospitals were full in 1980. None of the managed
care stuff had surfaced yet. Baylor had between 900 and
1000 beds. Sometimes we would have 1000 patients in the
hospital. An area on the 7th floor of Hoblitzelle had
guest rooms for people to stay overnight. We were so
tight for beds that we converted those guest rooms into
patient beds. We got hugs from the doctors. Getting 7
more beds was really important! Little did we know that 2
or 3 years later we would be heading into an era of major
change, both from the federal government's approach to
payment and later on from managed care.
There were 200 people
(doctors, trustees, and others) on 9 task forces doing a
10-year plan for Baylor. This was in place when I came to
Baylor. They were almost through when I got here. That
subsequently led to the building of the Roberts Hospital
and the facility on Main Street where you have the
laundry and other services. About 2 years after I
arrived, we had the plans to do the expansion, we went to
the community with a capital campaign, and we were off
and running. While we were building that addition,
diagnosis-related groups were introduced. Our occupancy
suddenly began to go down in 1983 and 1984. It went down
because the lengths of stay dropped. We hadn't even
opened the Roberts Hospital. We opened Roberts near the
end of 1985 (Figures 4 and 5). Here we were building
this magnificent new structure, and the occupancy rate
was dropping! I thought, wait a minute. This thing has
some challenges to it. I felt like all of a sudden there
weren't 200 people who had planned that addition, there
was only one guy, namely me. And they were saying,
Why in the world are you doing that? I felt a
bit of isolation on that decision. Obviously, it worked
out.
I made 2 recommendations
to the trustees if I were to come to BUMC. We needed to
build a community hospital system, called at that time a
multihospital system. I suggested that we see if other
communities would like to be a part of us. The second
thing I recommended was that we create a nonprofit
holding company, which turned out to be the Baylor Health
Care System. They concurred with both of those
recommendations, and we got them under way. If we had not
done that, we would have become an isolated downtown
hospital that would have been compromised severely. As
good as BUMC was, we would have been compromised by
managed care contracting because the population was
moving away from us. What I finally concluded is that
people would say, You guys are disadvantaged by
staying close to downtown. Building the system
became an advantage for us. It gave us an advantage of
going to a number of communities because we were no
threat to them. It allowed us to build this big network,
a circle around the metroplex.
WCR: Your
recommendation to build this multihospital system was
approved before you ever got here.
BP: It was my
recommendation, and by the end of 1980 we already had our
first community hospital.
WCR: The first
one you acquired was Ennis.
BP: Yes.
WCR: How did that
actually work out?
BP: During the
days of cost reimbursements, small community hospitals
could make it. All the little towns could afford their
own hospital. Most patients were Medicare patients, but
you could get by with it. Ennis was profitable. It did
fine. The fellow running the Ennis Hospital used to work
for me at Abilene.
WCR: When you
came here you called up the CEO of Ennis.
BP: We started
looking at possibilities and starting getting in contact.
We established a fundamental principle that we were not
going to be aggressive in the sense of forcing ourselves
on any community. We would not make a serious bid if a
community was not interested in it. We didn't want forced
marriages. I think that helped us over time. We
subsequently got Grapevine, Waxahachie, Garland, and an
affiliation with Richardson and later with Irving. That
part was really important. We had Gilmer in East Texas
too. Later on we had to sell it. It was just too far.
WCR: During your
time as CEO, you acquired 7 other hospitals.
BP: Yes. And
affiliations with a number of others--Sulphur Springs,
Denison, and other places. My time was an era of
developing and building systems. I'm part of the group
that had that view of health care and directed Baylor in
that direction. If we hadn't done it then, we couldn't do
it today. It created the basis for us to protect BUMC. It
created the basis for us to expand what BUMC represented
into other communities. Later on it also allowed us to
work out the physician component that we have through
HealthTexas. If we hadn't done that first step, I don't
think we could have done the others.
WCR: As you look
back on these 20 years as president and CEO of the Baylor
Health Care System, I gather that setting up this system
is going to be your biggest legacy. Is that the way you
feel?
BP: Yes. I would
say that is probably right. There are a couple of other
things that I feel very gratified about. One was my close
association in developing the transplant initiative. That
substantiated all the other clinical services that we
have and added to the luster and stature of Baylor.
Baylor was such a strong clinical institution that
reinforcing that became important, and we tried to do it
in each of the categories. Establishing the transplant
program was cutting-edge medicine at that time. We became
quite recognized for doing that, and today it's one of
our points of recognition.
WCR: How did it
come about?
BP: Dr. Fordtran
had been the best man in Tom Starzl's wedding. Tom
married a lady who had worked for John at the medical
school. They became friends. Tom came to town to do a
lecture in 1982. He happened to mention that he would
like to see a big transplant program in this part of the
USA because his program in Pittsburgh could not
accommodate everyone. He thought that transplant centers
should be geographically spread. There wasn't anything in
the Southwest. He encouraged us to look at it. John
talked to me. Jesse Thompson was the chief of surgery at
the time. The 3 of us spent about a year looking at it
quietly because if we were going to do it, we wanted to
be sure we understood it and be in a position to be able
to say why and discuss it with leaders of the medical
staff and with the board. We knew there would be
questions. At that time, liver transplantation was still
considered experimental. The insurance companies were not
paying for it. We carefully worked our way through it. We
worked out an affiliation with the University of
Pittsburgh Medical School. Tom was our friend all the way
through. He helped us build the hospital program. He
helped us by sending down 2 potential guys to head the
program. One was Roger Jenkins, who stayed in the Harvard
program in Boston, and the other was G?ran Klintmalm,
whom we selected to come.
When we finally decided
to do it, we set up a medical staff oversight committee
to give us guidance and set guidelines and policies. We
had our first committee meeting in December 1984. That
same day I left and went to the Salesmanship Club's
annual Christmas party at the camps in East Texas for the
kids. I was dressed in jeans and boots. We went over on
buses. We got back a little early. I got in my car at the
parking lot at Southern Methodist University and drove
down to BUMC to give Judy and Susan their Christmas
presents. When I walked in, they said, Mr. Powell,
we just about sent the state troopers out to get
you. I said, What for? What's going on?
They said, You'd better sit down. Dr. Starzl called
earlier today and said that both the Children's Hospital
in Pittsburgh and the Children's Hospital in Dallas are
full, and there's a little girl who needs a transplant.
He wants to bring her to Baylor to do it. I said,
You've got to be kidding. They said,
He'll come down with his team and he'll do it, but
he needs an answer by 6 o'clock tonight.
I gathered Jesse
Thompson, John Fordtran, Mike Ramsay, and other key
people and said, Gentlemen, this is a big
decision. At that time there was much press about
transplants. Newspapers published the condition and the
results on each patient. I said, We are going to
put our reputation on the line. Organizationally, I
didn't feel like we were there. We went through the pros
and the cons of the decision and finally decided that Dr.
Starzl had not given us bad advice anywhere along the
line. There wasn't any reason then to doubt him. Finally,
I said, Okay. Let's do it. I called Dr.
Starzl and said, Dr. Starzl, we reviewed this and
we're prepared to do it. And he said, Good.
We'll get this under way. And he said,
Incidentally, there's liable to be a little
publicity associated with this. I said, What
do you mean? He said, This little girl, Amie
Garrison, who is 5 years old, is the girl who just turned
on the lights of the White House Christmas tree. Nancy
Reagan and the press will be keenly interested in this
little girl, so I just wanted you to know that.
That was after the decision had been made. As we
concluded the conversation, he just chuckled. He said,
You know, Boone, this is kind of risky, but I love
it. And he hung up.
Our place went into
operation. People spent the night. The operating room
personnel came in. Our nurses got set up. Dr. Klintmalm
was with us but wasn't going to start the program until
the spring of 1985. The team flew in from Pittsburgh, got
in about 5 am, and had police escorts to BUMC from the
airport. The first stop was to a donut shop to get some
donuts and coffee, and then they headed in. Dr. Ramsay
and others were all there. The little girl's surgery was
done and she did fine (Figure
6). We
kept her for about a week and then flew her back to
Pittsburgh for follow-up care.
The logistics of that
were fascinating. The little girl was from Louisville,
Kentucky. The donor was from Canada. The surgical team
was from Pittsburgh, and they all were coming to Dallas
to converge at BUMC to take care of her. It was
something! It was extensive like a military operation.
One personal afterthought on that: I was right in the
middle of it and was just praying that we would have a
good outcome and no difficulties. I visited with the
family and periodically checked on Amie. On a Friday
afternoon I visited her father and mother in the
intensive care unit. While I was there, they told me that
Amie would like her favorite meal, Spaghettios. They
weren't sure what that was, so I got her dad, Mr.
Garrison, in my car and we went to several grocery stores
that Friday night trying to find Spaghettios for Amy. We
brought them back and gave her her meal. They didn't tell
me at Berkeley that I'd be doing these kinds of things.
It was a fascinating experience.
That next spring Dr.
Klintmalm kicked off his program. Sure enough, every one
of those cases was put in the newspaper. I found myself
like an expectant father. I'd go up to surgery. I'd walk
the hallways. I'd have them check to see how the patient
was doing. Then I would follow them to the floor. I would
ask how so and so was doing. They would tell me fine and
the numbers are okay today. I would go up the
next day. The numbers are not very good
today. I said, What's wrong? That was
the pattern of the care of the patient. I was like an
emotional yo-yo trying to understand what was happening.
I was so invested in that activity.
We saw some extraordinary
things begin to happen in the lives of these patients and
their families. I suggested that we had better capture
that on film. I got a film crew to come in, and they
filmed the surgery and the families before, during, and
after surgery. We focused on 5 patients. We didn't know
what was going to happen to them, but we wanted to put it
on film and capture that moment. We lost one of the 5
patients, and that was also the reality of what liver
transplants were about. We still have the film. It is
very moving. It goes to the essence of health care.
WCR: This
endeavor must have brought tremendous prestige to Baylor.
BP: No question
about that.
WCR: Thank
goodness you made the right decision.
BP: We have always
been eternally grateful to Tom Starzl for befriending us.
He had some detractors around the country. I can't
imagine how he sustained mentally and emotionally the
will to go on with so many patients who didn't make it.
That's why he is such a pioneer. He was a key part of our
decision and our ability to do what we do today. In those
early days it was not uncommon to see surgery run 10 to
14 hours. It wasn't uncommon to use enormous numbers of
blood transfusions in those procedures. Later, as the
team's skills improved, they did cases under 5 hours and
without any transfusions. The team is incredibly gifted.
It requires a major institutional commitment to take on
programs like that. The spin-offs have strengthened the
other parts of the liver program, and other surgeons were
engaged in it. You had to have strong gastrointestinal
and hepatology physicians. It has been a great thing for
Baylor.
WCR: You
mentioned initiating the Baylor system (multiple Baylor
hospitals) and the transplant program. You touched on a
third part of your legacy.
BP: That would be
our relationship with the physician community. The
general view of Baylor is that it is very physician
accommodating and physician friendly. We have tried to
see physicians as our partners, and we've done that by
engaging them in decisions and in joint venturing. We are
now looked at in the country as an organization able to
accomplish some things with physicians that very few
other hospitals have been able to do. We have had people
visit the campus to learn what we're doing in this area.
That has allowed us not only to expand some of our
clinical programs, but also to build our physician
network that subsequently became HeathTexas. Six or 8
years ago it was very important for a tertiary center to
have a strong primary care base. We had a good department
of medicine, but we did not have the geographic locations
that would be helpful to us to serve more patients as the
insurance companies contracted with primary care doctors.
HealthTexas came into being, and we were fortunate to get
the first 3 or 4 groups composed of outstanding medical
leaders. That set the framework for building the network.
In 20 years, we've gone from one very fine medical center
located downtown to a system of other hospitals, other
facilities, and other levels of service. We now have a
primary care center or another hospital in about 45
different physical locations.
WCR: That has all
happened during your tenure? When you came it was BUMC
only.
BP: A strong
clinical hospital, but that was it.
WCR: What have
your working activities been like on a day-to-day basis?
What time do you wake up in the morning? How do you go
about your day? What time do you go to bed at night?
Could you speak to these daily details?
BP: I don't sleep
long hours. I go to bed at 11 or midnight. I get up
pretty early. With breakfast meetings being so important,
I found that both ends of my day stretched out pretty
much. I also found that if I was going to stay up in this
business, I had to get out of the medical complex,
interface with the industry, and be in groups where I
could learn and exchange and test out ideas. Since 1983,
I've been in a group of 35 CEOs who are some of the best
in the country. I'm with them 2 or 3 times a year. That
has been a wonderful environment for me to hear what is
happening, measure the trends, see what is working and
what isn't, and test out what we are thinking about and
get reactions to it.
WCR: What is the
name of that group?
BP: It is called
HRDI (Healthcare Research and Development Institute).
That was one of my key areas. VHA (Voluntary Hospitals of
America) was also very helpful to me. Baylor was a
founder of that organization, so I was very active in it.
WCR: When did you
start that?
BP: VHA started in
1977. It was just getting under way when I came. HRDI
started in the 1960s. I'm in my last year, and I'm
hopeful that Joel Allison will take my place.
WCR: You have
been chairman of VHA?
BP: I've been
chairman of the VHA regional board called VHA Southwest.
I helped put that together.
WCR: Could you
explain for the readers what VHA is?
BP: It was formed
in the late 1970s by 30 to 35 outstanding geographically
spread nonprofit hospitals with the idea that we were
committed to the voluntary, not-for-profit sector of
health care. We watched the explosion of proprietary
companies that spun out of the enactment of the Medicare
law and built the major Wall Street-type companies--the
Hospital Corporation of America and Humana, for example.
We determined that we had better do something to redefine
the voluntary hospital group that still provided most
patient care in the USA. Those were the hospitals that
were committed to teaching and research, and we wanted to
find ways to enhance that. After a while, we got the
number of hospitals up to 90 or 100 across the country.
We then created regional networks of VHA by grouping
various states together. I, along with a couple of other
people, invited selected hospitals in Texas to become
part of the VHA Southwest. There are now about 25
hospitals in that regional group. A whole series of
programs and consulting services are available, including
mass purchasing. VHA has had some leverage with the
manufacturers. We do about $12 billion through VHA
purchasing. Both the corporate office and VHA Southwest
are based in Dallas. The fellow running VHA Corporate is
a person I recommended for the job.
WCR: Tell the
readers more about HRDI. It sounds to me like these are
the leaders in health care in this country. As a CEO and
president of such a large corporation, the pull on you
for activities outside of Baylor is pretty strong. I
suspect that some of them have a connection to Baylor
Health Care System and you are afraid not to be part of
them because you never know what ideas you are going to
get from these other activities. How have you been able
to manage that through the years?
BP: You are right.
That's another pull, the city of Dallas. We're considered
such a strong corporate citizen in Dallas that I have
been asked and have served on many community agencies and
on many boards. Sometimes I spend a substantial part of a
particular day engaged in community relationships. That
is partly how we justify who we are and how we build our
reputation. We also have a denominational relationship
that we had to take care of. For a long time we had a
university relationship. I did things on behalf of the
institution that would help it on a national basis. I
also had to find ways to grow personally. It's all one
big ball of wax, and you have to figure out how much of
it you can take on. VHA and HDRI were probably my 2 key
outside activities. Although I respect what the hospital
associations do, I decided not to go that route.
WCR: The American
Hospital Association?
BP: Yes. Some
people will follow that track and volunteer to be on the
board and would like someday to be chairman of
X association. That's fine. For me that
wasn't the way I wanted to do it. I often looked outside
the industry to see what I could learn. I would pick out
seminars to go to and try to learn from another
discipline. Everybody has his or her own way of trying to
do it.
WCR: You tried to
invest a small percentage of your time into your own
personal growth, which hopefully could become a part of
Baylor's growth and survival?
BP: Every time I
would come back from an HRDI meeting, the staff would
wonder what I was going to bring back this time. I never
left a meeting without some idea I wanted to try out at
Baylor. It was very valuable for me and for the
institution. I've attended seminars where doctors also
went with me. In the early days, we went to the Estes
Park Seminars for physicians, management, and trustees. I
did that a lot in Abilene. I did it in the early days
here. Today, we have other avenues. Some of our doctors
go to medical leadership seminars. We are always looking
for what the trends are, what the issues might be, and
inviting people to take a look at them with us.
I got through some of
this simply by delegating. I had confidence in people. I
knew they were not always going to do it right, but I was
willing for them to take it on. I also believe in the
principle that they will be better and make Baylor better
if they have a sense of owning part of it. I feel that
any leader who feels like he or she has to call every
detail of every shot is fundamentally insecure. If you
want to build a team, then you've got to be willing to
engage people with you and let them help you. Our folks
have made us much better than if I was trying to make all
those decisions myself.
WCR: When you get
people in leadership positions at Baylor to buy into and
approve various projects that you have initiated, you are
still responsible if they succeed or fail. Like the
Roberts Hospital: if admissions suddenly decrease as the
17-story structure is being built, it is your fault!
BP: It is.
WCR: The
physicians can easily give an opinion on this or that,
but they aren't really responsible.
BP: No, they are
not. I remember during that era a physician out of town
said, Roberts Hospital is Boone's white
elephant. That stung a bit. But it made me more
determined to see that we had not made a mistake. We were
caught during the 1980s trying to figure out how staffing
should be adjusted if patients were not staying as long.
What does it do to the hospital financially? The length
of stay dropped 40%! That is like taking 1000 and
dropping it to 600. What do we do with the excess
facilities or the new programs that we could bring into
it? We tried different things, like drug treatment, and
shifted some inpatient activities to an outpatient
setting. We had to do a lot of shuffling. All that
happened before we even had the impact of the health
maintenance organizations. The gurus at the time thought
that by the end of the 1980s, we would be through the
white water and things would settle down. How little did
they know! It's been like being on a treadmill at high
speed without the ability to get off. It's been like that
for years. But it's that way in the computer industry and
some other industries as well. The intensity of the
changes has been unrelenting. That is why it is easy to
get absorbed in it.
We had a cardiology war
in East Texas started by some friends of ours in another
facility. It looked like they were going to march through
East Texas and commit all the hospitals and doctors to
refer patients to their center. We said, We can't
let that happen. We hooked up with some of our
cardiologists and out we went. I found myself sitting in
a small town around a doctor's dining table at 10 pm
talking about why it would be good to be associated with
us as opposed to someone else.
WCR: It seems to
me that physician decisions--and physicians of course
make a lot of decisions--involve mainly single patients
and patients' families. Your decisions, like this new
Heart and Vascular Center, Roberts Hospital, the Landry
Center, involve a lot of people--patients, customers,
employees, and their families and their futures. You
can't just make these decisions overnight. As you drive
to and from the hospital or when you are lying in bed at
night, you must be thinking about them. How have you been
able to balance your life and be able to consider these
decisions not in a panicked state, but in a cool, calm,
thoughtful manner?
BP: I didn't
always do that. I have always believed that the idea of
balance was important. I have varied my ability to keep
balanced, but I have tried to keep balanced. Early in my
career when my children were small, I was home to have
dinner with them. If I had an evening function, I would
go after we had put them to bed. I worked hard at that. I
worked hard at being at their events (plays, golf
matches, whatever they were doing).
When the industry in the
early part of my career was somewhat stable, I knew what
was happening. You had maybe 6 months to analyze
something and to make a decision. When the frequent
changes started about 1982, two years after I came to
Baylor, the time for decisions decreased substantially,
and the intensity of the decisions went up. We were
constantly doing mental assessments about what this or
that meant. Should we, should we not? I trained my mind,
and I do it today. I automatically take an issue and
develop a bad case-best case scenario. I go to the worst
case first. It's just instinctive to me now. It wasn't at
one time. I had to start learning to think like that, and
I had to start thinking about how the decision would look
in the eyes of other people (your constituency). It may
be your medical staff, it may be the community, or it may
be an agency that you are working with. I had to learn to
anticipate the impact of a decision. Those were skills
that evolved over time but became instinctive to me and
to others. It was required because of the intensity of
the change. I worried about the welfare of employees as
we saw these economic things change. We have 13,000+
employees; I had to think about them and their families.
The thing I probably thought about the most was not
making a decision that would tarnish the name of
Baylor--not creating an action that would embarrass the
institution. That became part of my assessment process.
I didn't expect it to be
like this. Personally, it would have been easier for me
not to have come to Baylor. The impact of the changes
would not have been as severe in Abilene. But the
opportunity to come to the major leagues--Baylor--was
then or never. Our organization has developed to the
point where we play in the major leagues, and that is a
privilege. Baylor is almost the only non-medical school
hospital recognized in the annual U.S. News &
World Report survey of hospitals.
WCR: You've been
a CEO for 30 years! Although Abilene might not have been
a major leaguer compared with Baylor, you were much
younger then. And the decisions you were making then were
probably equivalent in magnitude to those you made here
because you had a lot more decision making behind you by
the time you got here.
BP: That was
helpful. I could not have walked in off the street
without that experience and come anywhere close to trying
to take on Baylor. There wasn't any way to do it. One
thing I shared with the trustees when I was interviewed
was that I was not a maintainer. I asked them
the question, Because Baylor is so well thought of
right now, is there anything left to do? If there's not,
then don't offer me the job because that's not what I do.
I'm not a good maintainer. If there is something to
develop, expand, and enhance, then maybe I could
help. I know if I'm not thrown into that
development side, trying to improve something, then I
don't function very well.
WCR: You've gone
to Baylor University. You've been a loyal alumnus of that
university. You have received the prestigious Baylor
University alumni award. You've been CEO at Baylor Health
Care System for 20 years, and you have continued your
connection to Baylor University via their and your board
of trustees. It must have been a terrible disappointment
to you when the idea suddenly arose that the Baylor
Health Care System could be pulled out from under you by
your own university. It must have been the most traumatic
experience you've had here. Is that right?
BP: Yes. Right or
wrong, we were trying to evaluate the next set of
environmental trends to see what we should do. I tried to
discuss those with the regents and didn't anticipate that
3 or 4 of them would see that in a different light and
would come up with an idea that was unacceptable to us
and to the Dallas community. It's probably the most
uncomfortable position I've ever been put into. It was
for some of our trustees and friends as well. One thing I
had to do internally, since it started out as a
high-profile case, was to decide how I was going to
handle it and how I was going to come across publicly. It
was uncertain to me what was going to happen for a period
of time. I didn't want to say that all the trustees in
Waco felt that way, and I certainly didn't want to damage
the university that had meant so much to many of us. I
took the approach that we would have to find a way to
solve it. I determined that I would not say inappropriate
things about anybody or about the institution in Waco. I
tried to give the constructive rather than destructive
answers. Based on feedback I got through the course of
its solution, that's the way it came across, fortunately.
That helped us in the reconciliation later on. I'm not
sure I would be very good at public politics. If you look
at Bush and McCain during the primaries in 2000, they
said rough things to each other. Politics requires you to
come back and say, I didn't mean it. I didn't
want to get into that. I didn't want to have to apologize
later for losing my temper, which I never did.
WCR: Were you
pleased with the resolution?
BP: Yes, I was.
WCR: Did you
actually view this event as a major positive for the
Baylor Health Care System?
BP: The
traditional relationship that the medical center had with
Baylor University had been wonderful. They operated
theirs and we operated ours. We cooperated where we
could. Nary a problem existed for years. I felt bad being
at the helm when the dispute arose. In the life of an
organization, as in personal life, freedom is essential
to determine destiny. It looked like we were not going to
be able to be free under the university-proposed
arrangement. I felt that it became imperative to become
independent, and so did others. And that is what
happened.
WCR: The time
spent in trying to decide whether it would be worthwhile
for Baylor to merge with the Harris/Presbyterian
combination must have been exhausting. Do you view those
discussions now as a positive, something that taught you
and others more about Baylor?
BP: I think that
is fair. Any time there are discussions like that, you're
faced with a fair number of difficult dilemmas. The
involved institutions obviously have different views,
histories, cultures, and approaches. We felt like there
were 3 church-based and faith-based organizations, and if
anybody could pull it off from that fundamental base then
we could do it. It was more imperative at the time we got
into the dispute with the university because Columbia was
a big machine running across the country. The fundamental
proposition we held was that we were community-based
nonprofit organizations--not for-profit organizations. I
don't denigrate the proprietary side. It's just not for
me. If we had been sold, I had already told our board
chairman that I was leaving. I knew the people in the
company (Tenet). I didn't have any ill feelings toward
them, but it just was not my calling and I would be gone.
As we got into
discussions, we learned a lot about each other. The
discussions probably made us better; we understood how we
thought and what was important. It became clear to me
toward the end that the views of our clinicians and the
views of some of our key employees, after they had taken
a good look at it, were such that they preferred that we
stay the way we were. We had so many people put efforts
into the merger. We had great leadership on the board. We
studied it, looked at it, and didn't do it. I didn't look
at it as a failure. I viewed it as a very serious
examination of an idea and alternative that the parties
decided not to do. The landscape of health care changed
during the 1 to 2 years of the discussions. Many of those
great institutions that did come together are now
unwinding. The experiment generally has not worked.
Trying to put these big organizations together when there
are so many differences in the organizations is difficult
and probably infrequently desirable.
WCR: You are
absolutely pleased with the decision not to merge.
BP: Yes. I think
the trustees in both organizations made the right
decision, although months earlier I thought it was the
right thing to merge, and so did some of our physician
leaders.
WCR: You've been
a CEO for 30 years. Most CEOs in the major corporations
in this country are there for 4 or 5 years only.
BP: College
presidents turn over pretty quickly also.
WCR: I presume
that you are quite pleased to be out of the day-to-day
operations of a billion-dollar plus corporation.
BP: I had moved
out of the operations some time ago, and Joel helped me a
great deal when he came back and became the chief
operating officer. The difference for me is not so much
that; it's the sense of carrying the responsibility 24
hours a day, the sense of knowing that if anything goes
wrong, you'll have a question about it. The sense that a
regulatory group comes in and you didn't know you had a
problem, but you do. The sense that you may get a call
from the media on something. In my career, I've dealt
with things such as patients' jumping out of windows or
outsiders (as imposters) coming in and sexually harassing
patients at 2 am. I've had an enormous number of exposure
points that were not pleasant, and they worry me to
death. In the early part of my work, I was very fearful
about the nursery and the fact that we mixed our own
formulas. In mixing formulas for the nursery, a slipup
could occur and harm a baby. I feel like I have been on
call all my life, all of the time. I've been called at
different places in the country for different reasons.
That was okay. It's part of the territory. It's nice not
to feel like you're on call. Doctors have a parallel to
that in their practices, of course. For me it wasn't the
work, it was that sense of responsibility. I never wanted
to mess things up, and I didn't want to hurt people at
either one of the hospitals that I worked with by doing
something wrong.
WCR: Could you
talk a bit about your family? It sounds like you and
Peggy are best friends. Your children have all come out
well. You are a grandfather now. How have you been able
to keep that part of your life together so well?
BP: Peggy and I
have been married 42 years. Our children are 36, 38, and
40. We've done things to try to keep the family unit in
place and together. Peg and I have spent a number of
years working with engaged couples at our church in hopes
that their marriages would be okay. We've done things
like that together. We both just love being grandparents (Figures
7, 8, and 9). We're typical crazy
grandparents. We will do things with the grandchildren
that we never did with our own. I give them ice cream
sandwiches for breakfast when they stay with us and just
laugh when we turn them back over to their parents.
In Colorado we built a
place that everybody can come to (Figure
10).
We just opened the home about a month ago, and we had our
grandchildren and family there for 2 weeks. That part of
our lives has changed my perspective. I had thoroughly
enjoyed being immersed in work because what I did was so
important. It represented healing, not hands-on healing
but being part of the healing process, and I loved it. I
can't do that at the pace or the hours that I did most of
my life, and I enjoy this next phase. It was time to
change. I sensed it. The board knows when it is
appropriate for changes to occur. I love what I'm doing
now.
WCR: What are
your goals now?
BP: I'll add one
more thing to my list of what I felt good about, and that
is trying to build the philanthropic part of Baylor. I've
got to put this in context. When I arrived in 1980,
Baylor didn't have any debt, but it also didn't have any
money. Dallas had been good to it, but philanthropy
during that period of expansion all went for equipment
and buildings. There was no endowment. There was no
cushion for the mission-related parts (education,
research, and community service) we had to do. About
1982, I determined that we needed to put a priority on
that in the organization. I got Gordon Caswell to come,
and we started building up the foundation staff. We
started putting emphasis on it. We had a goal of getting
to $100 million. That looked like a long way because we
only had $8 million in endowments at that time. But we
hit it and then we set a goal at the 100th anniversary
(2003) to try to be at $250 million. That's a combination
of gifts we have and gifts we know we are going to get
through trusts and things of that nature. We've passed
that. We've raised the target to $350 million and might
even push it a little further. When I walk away, I would
like to feel that there are some appropriate endowments
there that can weather any of the environmental storms
that come, that will help us do some of our mission
purposes. And the other thing that has always driven me
is to try to walk away from anything that I've done and
any board that I've served on and have the place be
better than I found it when I arrived. When I exit, I
want Baylor to be better than when I found it. It was
good, but I want it to be better.
WCR: Baylor in
2000 is entirely different than when you came in 1980.
That fact must give you an enormous degree of
satisfaction.
BP: It's 2
different organizations. The new team will have the same
opportunity. They will continue to develop and build our
clinical strengths. They are very good at assessing what
needs to be done. There are a lot of operational
pressures on the new team because of finances, but they
will do a good job with that. They are doing a good job
at enhancing some of our partnerships with physicians and
those in communities. I want to end up by having built up
some of the philanthropic base. I was in Washington, DC,
yesterday meeting with the head of the Medicare Advisory
Commission on the implications of decisions that Medicare
had made and the negative impact they have had on Baylor.
I'm working in the public policy arena. Governor Bush
asked me to be on the task force to improve medical
insurance and coverage to Texans. I have moved into this
arena trying to strengthen us and trying to get some
input in key areas that have impact on us.
WCR: I was
visiting Charlotte Memorial Hospital several years ago.
The people I was visiting took me to see their CEO. He
asked me where I was from and I told him BUMC in Dallas.
He said, Well, I just watch Boone Powell, Jr., and
whatever he does I try to follow. That was a pretty
good compliment.
BP: It is a very
nice compliment. Baylor has a good reputation nationally,
and mine's been okay too. I try not to think about that
too much because you trip over yourself. The way I've
been able to try to get around that is that some years
ago the idea of leading by serving began to develop as a
philosophy. It's called servant leadership, and it means
your focus is on the service and not on what you are
doing. It's a very liberating concept, and I liked it so
much that I have shared it with our management team on
several occasions. Let's lead by serving. You don't have
to be the first one in the buffet line, you can be the
last. You be sure that those people we serve get what is
necessary, and we'll be taken care of.
WCR: Could you
talk a little about your church life and your teaching
activities? You've already mentioned your discussions
with newly engaged couples.
BP: For 13 or 14
years in Abilene, my wife and I taught college. It was
fun to work with freshmen. We taught for a while when we
came to Dallas, but our biggest involvement was our
teaching in the engaged couples program with several of
our trustees and others. My wife actually started it.
We're not going to do that anymore. She has an idea for
something else--parenting classes. I think she is going
to try to start that. I have found that when I've been so
busy, I'll say to those people who ask me to help them,
I will, but let me do the rifle approach rather
than the shotgun approach. What that means is to
give me something specific, a specific project or a
specific area where I can do something. I can do it and
complete it. That's different than taking on the
obligations of something weekly. I just haven't been able
to do that. I really enjoy working on a rifle basis.
WCR: Your
activities with the Young Life group have been a lifelong
activity of yours.
BP: It has been 48
years since I went to that camp. I've got my own bias,
but I don't think popular culture has been very friendly
to kids, particularly in recent years. I am very much an
advocate of things that are more positive in nature.
Young Life is one of those. The Salesmanship Club does a
good job and so do the Y, Girl Scouts, and
Boy Scouts. Those kinds of things are great influences.
Kids need balance in their lives. Whether it's MTV or
something else, they're getting washed with a lot of
stuff that is not too good. I want to help out on the
other side of that equation.
WCR: What are
your own 3 children doing now?
BP: Two of them
are housewives, and my son is quite good in the financial
world (asset management). He works with banks as a
financial advisor.
WCR: Where does
he live?
BP: Austin. We're
very close. We talk a lot and share ideas. He's very
engaged in supporting the same types of things now that I
do. I didn't ask him to do that; he just evolved to that.
WCR: That must
make you very proud.
BP: It is very
gratifying.
WCR: What do you
think the Baylor system is going to be like 25 years from
now?
BP: I think it
will continue to have its core mission in place. Whatever
will be the sophisticated technology 25 years from now, I
think Baylor will be part of that. A good part of it
would be downtown because that is what BUMC offers. I
expect us to continue to expand into other communities. I
expect us to have a presence way out north, possibly
Frisco. I think we will anchor the metroplex that way.
WCR: Boone, is
there anything that you would like to discuss that we
haven't covered?
BP: I really can't
think of a medical group that has been better to work
with than what I found initially at BUMC and what I found
in some of the other community hospitals. We have tried
to put such a premium on physician-administration
relationships, and many physicians have responded well. I
pay tribute to the physicians quite a bit. I've had a
great board, too; wonderful citizens are on it. I don't
think you can be successful, particularly in this at-risk
environment, without the doctors helping you through it.
Of all the years and all the associations I've had as
CEO, I'm not sure I've come across a medical group that
has been with its hospital more than what I've seen here.
I inherited it, and I've tried to nurture it.
WCR: Boone, on
behalf of myself and particularly the readers of BUMC
Proceedings, I want to thank you
for your willingness to pour out your soul, so to speak.
BP: Let's see how
it works.
WCR: Thank you
very much.
BP: Bill, thank
you.
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