LANCASTER – The Antelope Valley Healthcare District Board of Directors announced Friday that AV Hospital CEO Dennis Knox tendered his resignation citing little more than “personal reasons.”
Knox’s resignation was effective Thursday, according to the healthcare district’s press statement, which followed a closed-session executive board meeting on Wednesday.
No other decisions from the board regarding Knox’s status were made public following Wednesday’s closed-door meeting, which was described on the agenda as “personnel evaluations.”
Dr. Doddanna Krishna, chairman of the board of directors for AVHD, stated in the press announcement that “recruitment will begin shortly for a new CEO, and until that time Chief Operating Officer Jack Burke will fill the role on an interim basis.”
Krishna noted some of Knox’s accomplishments in the press release, most notably overseeing the opening of the Institute for Heart & Vascular Care, achieving certification as an Advanced Primary Stroke Center and Baby-Friendly facility and STEMI Receiving Center recertification, and securing $200,000 in grants from the UniHealth Foundation and the California Community Foundation, among other achievements.
“In a relatively short time as CEO, Dennis was able to have a significant impact on our hospital, and the community is much better off as a result,” Krishna stated.
Knox’s 20-month tenure also included a financial restructuring of hospital staff in September 2014, which resulted in about 105 employee layoffs.
In a September 2014 public information session, Knox said it was necessary to initiate layoffs at the time because the health care facility was “being looked at by Housing and Urban Development on how we’re going to right-size the hospital and prepare for the future.”
At the time, the hospital was applying to HUD to refinance its $130 million debt to qualify for the federal department’s refinancing program.
Also under Knox’s tenure, AV Hospital filed a claim on April 13, 2015, against Los Angeles County and its Board of Supervisors for failing to properly administer and allocate tens of millions of dollars of property tax revenue per Measure B to L.A. County trauma centers.
AV Hospital, which serves 5 percent of the County’s population, receives less than one-half of 1 percent of all Measure B funds annually, according to the hospital’s attorneys, McNicholas & McNicholas and The Sutton Law Firm.
With the lawsuit still pending, the hospital alleges the County failed to use Measure B funds to address the County’s most pressing trauma needs, while failing to fulfill the intent of Measure B to expand trauma services countywide.
With about 35 years of healthcare executive experience, Knox was appointed CEO in December 2013 to replace Edward Mirzabegian, who resigned.
When hired in 2013, Knox was responsible for establishing the strategic direction of and providing executive leadership for the overall operation of Antelope Valley Hospital, according to a 2013 press release.
Prior to his position at AV Hospital, Knox served as CEO of Western Medical Center Anaheim.
Antelope Valley Hospital is one of the largest employers in the community, employing about 2,400 personnel, and having 450 physicians on staff. The hospital admits about 13,000 patients each year.
Previous related stories:
AV Hospital’s claim against LA County seeks fair share of trauma center tax dollars
Hospital CEO assures employees layoffs are done, bargaining continues
Quality of patient care questioned after AV Hospital announces personnel cuts
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About the author
Jim E. Winburn is freelance reporter covering news of public interest.
Claire says
Oh yes! Joaquin “El Chapo” Guzman’s wife Emma gave birth to twins at A.V. Hospital. Absolutely mind boggling!
cranston snord says
the absolute worst nightmare in patient care I have ever witnessed. People crowded in halls being treated, or not. Suffering loss of privacy and ever letter of H.I.P.P.A. being broken 24/7. the the antelope valley is a black hole for resources. it is a disposable society.
anotherdummy says
Well, that didn’t take long…
Tonight there will be an AV Healthcare District board meeting to discuss bringing in an outside management consulting firm. If this were to actually happen, it wouldn’t be the first time AVHD had to deal with such a mess.
These private practice physicians claim they want to pay their leadership for “performance” while campaigning against insurance reimbursement based on patient outcomes. In reality, the board members are looking for leadership they can control like a marionette. These board members are only doing what will most benefit their own business; not the community who relies on the healthcare district or the over 2,300 people who are employed by the district.
With the HUD refinance in process and the LA County Measure B funding being sought, these drastic changes in executive leadership are almost sure to make any effort thus far meaningless. HUD will deny the refinancing based on instability in leadership. And the lawsuit with LA County will go nowhere or be dropped entirely.
A management consulting agency (being consultants) are going to need to come in and hit the track with tires smoking so they appear like the money they are paid is going to action. Whether the action they take is appropriate or not, they will make change after change with the most minimal (if any) analysis prior to making drastic changes to operations and workflows. Employees will scramble to keep up and become terribly demoralized. Systems that have been put into place and have been being refined in the recent years to improve the flow of patient care will be shaken, causing patient care to suffer as a result.
I know a lot of people out there have complaints about their experiences with Antelope Valley Hospital; but it should be noted that the vast majority of the medical staff are private practitioners who also practice at Palmdale Regional. The district also extends beyond the walls of just the hospital. It is a district with numerous outpatient facilities and services that many people depend on. The actions of the 5 board members have more impact in the Antelope Valley than many people realize, while the only impact it has on them is their wallets.
another individual says
I could not agree more with your assessment of the situation. In fact, the individuals on the board are there for their own self interests and not the best interest of the community. They are not looking at the viability of the hospital and are looking at their own wallets. It is my understanding that AVH does not even really need a board of directors since the 70’s when they no longer took tax dollars. The community needs to stand up and dispand the board and demand a top notch hospital with the community needs in mind and not the physicians and their fat pockets.
Question Lancaster Authority says
the question we should be asking is why did Rex want him gone? No one comes to power or stays in power in Lancaster unless Rex is ok with it.
anotherdummy says
You give Rex too much credit….
Let’s consider a couple points here, shall we?
1. The California Nurses Association (nurses’ union) backed Doddanna Krishna election as chair of the Antelope Valley Healthcare District Board of Directors.
2. Dennis was very tough with the unions.
3. CNA negotiations begin again today, just after Knox “resigned”.
Not to mention Dr. Farrukh’s comments in the Valley Press about using an outside management consultation firm… A lot of changes coming to the Healthcare District in the very near future.
Question Lancaster Authority says
I give Rex no credit for anything. He is a very powerful person who exerts his influence everywhere he can for his own benefit and not the benefit of others. He is a bully, he is power hungry, he is money hungry, and he has his fingers in every influential pie in Lancaster. That includes AV Hospital. Do not forget that he tried (unsuccessfully) to bring in a birth tourism program with Chinese patients.
OG says
Rex gave plenty of $$$ to Krishna for his election campaign. And had a party for him at his house.
Nurses or not, Krishna is Rex’s guy!
Rex's Playground says
Every board in the God forsaken town is controlled by the most demented, corrupt, twisted and bullying figure this Vally has ever seen. Lancaster is a dying city and it all is on account of the mayor.
Jake Elwood says
What a shame! All those accomplishments in less than two years. I wonder what the Board did to drive him off?
This is what happens when you stack a Hospital Board with doctors in private practice. Are they working for the good of the Hospital or for the good of their wallets?
Tim Scott says
I wouldn’t think it would take much driving off. That measure was passed because the trauma system was so horribly broken that literally EVERYONE in the county could see that something had to be done. Now it seems that for thirteen years OUR part of the trauma system has gotten literally nothing but worse. (Thanks Antonovich!)
This guy seems to have started a process to make that better, but fighting the county with (probably) no help from the city governments is an absolutely epic task. There may not be enough support from the board in the world to make that a job that seems worth having. I’ve taken on some of that kind of “take over as captain of the Titanic” type jobs…if he has a family and wants to keep it he might have opted to abandon ship, and I don’t blame him.
Roxanne says
The Board and the physicians who influence the Board members think primarily with their wallets. However, a hospital without physicians to practice there is not financially viable. The hospital-physician relationship should be a symbiotic one, with both parties benefitting. If that relationship is unbalanced, the suffering party is right to cut ties. The Board’s decision to fire Dennis Know (and that is what happened) is a result of Mr. Knox making decisions for the hospital that affected the physicians financially. That was a mistake on his part, and he is suffering the consequences. He bankrupted his last hospital by making the same decisions. I am glad the Board took the action they did. It saved us.
God bless Jack Burke and keep him safe. This is going to be a hell of a ride for him, but the Board trusts him, as do the staff. He will guide us through this.
Ashley says
Google “Dennis Knox” before you sing his praises. His bad decisions far out weigh any of his accomplishments.
William says
I wonder if the hospital is buying out the remainder of his contract.
Isn’t that how it works? They get bought out and move to another city to do the same thing all over again.
Meanwhile, they are getting 2 salaries, one from the buyout while getting another salary from their new job in another city.
Tim Scott says
Makes one wonder why he would have been hired in the first place…but it’s probably because no one in their right mind would want the job unless it was the only job they could get.
Ashley says
Good Riddance! What AVH needs is Ed Mirzabegian back. He may have been a little rough around the edges, but he was 100% REAL!
Jason Zink says
Thank you, Dennis Knox – AV Hospital and AV are better off now because of your leadership. Hopefully AV will win and be treated fairly from that lawsuit. That took guts from you and the board.
Tim Scott says
“AV Hospital, which serves 5 percent of the County’s population and handles nearly 12.5 percent of the County’s trauma and ER visits, receives less than one-half of 1 percent of all Measure B funds annually”
Wow. Just…wow. If that is even remotely in the ballpark of accurate that is absolutely grotesque.