Trios, amid bankruptcy, shakes up leadership — again

Trios Health has a new top administrator.

The board appointed Mark Armstrong as interim CEO, effective Feb. 1. He replaces Craig Cudworth, who’s been leading the public hospital system for the last year.

Cudworth’s contract was up at the beginning of February, and the board decided it wanted a new administrator, said Marvin Kinney, board president.

He declined to elaborate.

Like Cudworth, Armstrong is an employee of Quorum Health Resources, the consulting firm that’s providing management services to the district.

Cudworth’s exit comes about 10 months after his arrival. He replaced Glen Marshall, Trios’ longtime CEO.

Trios has had several difficult years, with tight finances leading to layoffs and, eventually, a Chapter 9 bankruptcy filing.

The bankruptcy was initiated last summer and offers the district some relief while it deals with $221 million in debt.

In a statement, Kinney said Armstrong brings “a wealth of relevant experience that will help Trios hardwire the improvements already in progress and provide continuity as we continue working through the bankruptcy process. We appreciate his willingness to step in at this critical time and look forward to his leadership as we return the organization to financial health.”

Armstrong won’t have a steep learning curve. He’s been working with Trios since 2016, when the board hired Quorum to analyze the district’s finances, operations and management.

He has more than two decades experience in health care leadership, having worked as chief executive officer, chief operating officer, chief financial officer and chief restructuring officer at various organizations.

He’ll lead Trios until a new interim CEO is chosen, according to a district statement.

Armstrong will be joined by a new chief financial officer, Michael Rolph, who is on contract from Quorum to help guide the 1,200-employee company through the bankruptcy.

Trios Health is the name of the Kennewick Public Hospital District. It includes two hospitals and a network of services and care centers.

Despite the bankruptcy, the hospital district isn’t closing its doors. In fact, officials have said the bankruptcy represents a commitment to the future.

This story was originally published February 5, 2018 at 6:00 PM with the headline "Trios, amid bankruptcy, shakes up leadership — again."