Focus on people marked Warren's hospital service

The most dramatic medical building program in decades at U-M was started during Larry Warren's service as CEO of the U-M Hospitals and Health Centers (UMHHC).

But Warren's ability to connect with staff and his steady focus on his No. 1 priority—serving patients and their families—leaves a similarly dramatic impression on his co-workers.

Warren (Photo by Marcia Ledford, U-M Photo Services)

Warren, who is retiring Oct. 1, was named interim executive director in July 1996, just a few months after the creation of the U-M Health System that brought together the Hospitals & Health Centers, Medical School and M-CARE under one umbrella. His appointment became official the following year.

"One of the first things that Larry did was clarify that the driving value of the hospital should be patients and families first," says Marge Calarco, chief of nursing and senior associate director. "That became an organizing goal. Today you see that everywhere in our system."

Calarco says another key element of Warren's success is his ability to connect with staff. "He began to have employee forums; he really was very open to getting questions and answering questions."

Tony Denton, senior associate director and chief operating officer, says, "Larry is a very engaging person. He listens very well; he takes input from others and makes others part of the process of decision making."

Thomas Biggs, associate director for operations and support services, says, "Larry created a culture here of patients and families first; he also created a culture about caring about employees. People would feel comfortable stopping him in the hall and talking to him or sending him e-mails—he always made himself available to the little guy."

Calarco recalls a story told by one nursing supervisor, who ran into Warren in the cafeteria and he remembered her name—even though she'd met him only briefly years earlier. "She said that made a lasting impression on her. Housekeepers will say that, too. He's getting hundreds of e-mails this week from employees since he announced his retirement."

Warren is a CEO who like to get out of his office and walk the halls of the hospitals and talk to staff. "He knows that the way he treats employees is the way they will treat others," Calarco says. "It's just the loss of a really good man with integrity and principles."

While Warren is successful at managing staff, he also is recognized for his work with the hospital system's finances. In his first fiscal year at the helm, 1997, UMHS reported a positive operating margin of 1.8 percent on revenues of $740 million, overcoming a negative margin the year before. That growth continued through June 2005, as the fiscal year ended with a margin of 5.4 percent on revenues of $1.31 billion.

"We have been very fortunate to have experienced growth over this time in all categories," Warren says. "Our patients come from every county in the state, which is a fact no other hospital can duplicate."

Patient traffic consistently increased during his tenure, from 33,016 hospital discharges, 36,026 surgeries and 1.017 million outpatient visits in fiscal 1996 to 43,345 discharges, 60,106 surgeries and 1.621 million outpatient visits today.

"Patients and families first has become our driving value, which pleases me," Warren says. "There is clearly more work to be done but together we made a difference. I am delighted to have worked with many exceptional people from environmental services staff to faculty. I truly enjoyed my time here and know the institution will do well going forward."

Of his retirement, Warren says, "I have no particular plans in mind but look forward to rediscovering my family and working on projects that have been on my to-do list for many years."

Warren began his professional career at what was then known as the U-M Hospitals in 1973 as a personnel representative and compensation analyst. He left the University in 1982 for Mercy Hospital of Detroit, where he rose to executive vice president and CEO in 1985.

Returning to U-M Hospitals in 1986 as associate hospital director, he was promoted to senior associate hospital director and chief operating officer in 1994. From there, he was tapped for the interim executive director position in 1996 and then formally appointed in 1998. He received the title of director and CEO of UMHHC March 12, 2004.