Goal to Go
Peter Banko
Peter Banko earned a bachelor’s degree at Notre Dame in the late ’80s.
And as with most people who attend that university, his connection to it — and its football team — remains quite strong, manifesting itself in many ways.
Indeed, his office on the sixth floor at 280 Chestnut St. boasts everything from signed photos of players from his era — including one of Pat Terrell, who famously broke up that two-point conversion in the so-called ‘Catholics vs. Convicts’ game against the University of Miami in 1988, Banko’s senior year — to a replica of the famous ‘Play Like a Champion Today’ sign that players smack as they exit the locker room. Meanwhile, he has season tickets and goes to most games in South Bend each fall.
But the connections to Notre Dame don’t end there, and they extend, coincidentally, to his eventual arrival at Baystate Health, where he took the helm as president and CEO on June 3.
As Banko tells the story, he was standing in line at the men’s room at Notre Dame Stadium during the game against USC last October when the person two ahead of him in that line, someone who places executives in healthcare systems, started talking about the top position being open at Baystate, and how he might want to think about pursuing it.
“In meeting with the board and others, what came across was a commitment to mission and community. The academic nature, but also the community nature of the system was very attractive.”
“He turned around and said, ‘hey … are you open to looking at something?’ I said ‘yes,’ and he said, ‘Baystate,’” Banko recalled. “I said, ‘in Springfield?’ and he said, ‘yeah.’” (More on this later.)
And then … well, there’s his commitment to taking the Notre Dame family’s philosophy, if you will, about taking care of one another — long after they’ve graduated or stopped playing football — to healthcare in general, and now to Baystate Health.
Peter Banko says these have been difficult times for Baystate Health and its flagship hospital, Baystate Medical Center, but the system’s goals are “within reach.”
“There’s a way that you’re indoctrinated, that you take care of each other,” he said, referring those who are called ‘Domers,’ a reference to the campus’s famous golden dome. “From a healthcare perspective, this is a people business, and we have to take care of the people who provide the care. That’s the business lesson learned — you take care of the people; the rest works itself out.”
Putting aside all the Notre Dame memories and connections for a moment, Banko said he came to Baystate because he was well aware of its strong reputation within the industry and wanted to be part of it.
“I’m also having fun again. Sometimes big is not great,” he said, adding that he wasn’t having much fun — or, at least, not as much as he used to — at Centura Health in Centennial, Colo. (which he served as president and CEO), which is part of the massive, $4 billion CommonSpirit Health system.
How much fun he has at Baystate will likely be a function of how well the system, which consists of four hospitals — Baystate Medical Center, Baystate Noble Hospital, Baystate Wing Hospital, and Baystate Franklin Medical Center — as well as several neighborhood clinics and other community-based services, fares with the many challenges facing all healthcare systems today.
“I heard someone say I’ve got the toughest job in town, and I said, ‘no, I’ve got the easiest job in town; I’ve got a great group of people.’”
These include workforce issues, which started before COVID and were amplified by the pandemic; inadequate reimbursements from public payers; and, in general, maintaining a healthy bottom line.
Perhaps the biggest of those challenges is building and maintaining a workforce, he said, adding that a number of factors, from retiring Baby Boomers to COVID-induced burnout that prompted many to leave the industry, are conspiring against healthcare providers on this front.
“We’re facing all the demographics — people are retiring, and there aren’t people replacing them,” he said, adding that Baystate’s status as a teaching hospital will likely be an advantage as it confronts these workforce issues moving forward.
As for financial challenges, he takes over a health system that experienced an operating loss of $178 million in FY 2022, lost $63 million on operations in FY 23, and saw operating losses carry over into FY 24. Nonetheless, Banko sees light at the end of this tunnel.
Peter Banko says workforce issues are the biggest challenge facing Baystate Health, and all healthcare providers, today.
“We’re poised and in a good situation, even though we’ve had a couple of rough years,” he went on. “Folks have said, ‘yeah, it’s been really rough here. I said, ‘well, if it was too rough, I wouldn’t have come.’ We’re poised to do some really good stuff.”
Overall, he said his primary goal is to build on the solid foundation put down his predecessor, Dr. Mark Keroack, and take full advantage of the system’s many assets, especially its core of physicians and clinicians.
“As I told the board then and I keep telling people now, I can move mountains with the group of physicians we have here,” he told BusinessWest. “We can do anything.”
For this issue, we talked at length with Banko about healthcare, the challenges facing the industry, his plans for meeting them head on, and, yes, Notre Dame football and all those connections to his alma mater.
His Chosen Field
Banko calls it his “week of fame.”
It came in 2006, when he was serving as administrator of the CHRISTUS Spohn Health System in Corpus Christi, Texas, and it started when he got a phone call alerting him that Vice President Dick Cheney had been shot while quail hunting and had been taken to what was known then as Corpus Christi Memorial Hospital, part of the system. Upon arrival, Banko found out that wasn’t the case, and also that, while no one was saying it out loud, let alone officially, it seemed that Cheney had likely shot the person who was in his hospital.
“I did a few interviews with national news outlets that evening on the phone, and I came in the next day at 6:30, and every news outlet on the planet was parked outside the hospital,” he recalled. “I did all the press conferences every day; I had a direct line to the White House.”
And what he remembers as much as those press briefings and his hotline to 1600 Pennsylvania Ave. is how his doctors eventually solved the mystery surrounding the victim’s heart-attack-like reaction to the shooting.
“We couldn’t figure out what it was,” he recalled. “We had doctors in from three major teaching hospitals and the White House. I was in the cath lab with seven cardiologists and three heart surgeons on our side, and one of our docs found an obscure article about a Vietnam vet who had shrapnel in his heart, and years later he had the same symptoms. So they treated him based on that one article.”
The rest of Banko’s career has brought considerably less fame, if you will, but myriad rewards and rich learning experiences. And except for one very brief stint in the private sector, as he called it, he’s spent that career in healthcare administration.
He actually got his start in healthcare as a junior volunteer in his home state of New Jersey while attending Notre Dame. His specific assignment was patient transport, which enabled him to meet hundreds of people and compile a large portfolio of stories.
“I had a lot of great conversations, and I learned a lot,” he said, adding that the administrator of the hospital — a Notre Dame football fan — told him he a knack for health leadership.
“Being an academic center has put us in a better position. We can more easily work with the universities and colleges, we can partner more, and we have that academic setting where we can train and keep our own, which puts us in a unique position.”
“I said, ‘I don’t even know what you do,’” he recalled. “She spent a few hours with me and encouraged me down a path. So, other than one week working in a supermarket as a porter, I’ve never worked anywhere other than a hospital or physician group or health plan.”
After earning his bachelor of business administration degree at Notre Dame and his master of health administration degree from the Sloan Program in Health Services Administration at Cornell, where they take their football far less seriously, he worked in a succession of jobs in healthcare administration, starting at Saint Clare’s Health Services in Denville, N.J. Later, there were stints as president and CEO of CHI St. Vincent in Little Rock, Ark.; and at CHRISTUS Spohn in Texas.
With CommonSpirit Health, he spent nearly two decades in various capacities, including vice president of Southeast Operations and national chief integration officer, before becoming president and CEO of Centura Health, with facilities, including 20 hospitals, across Colorado, Kansas, and Utah.
“I was at CommonSpirit for 17 years, and I was ready for a refresh and a chance to do something different,” he said.
Which brings us to that encounter with the executive recruiter in the men’s room at Notre Dame Stadium.
New Team Leader
Banko said he was late, as in very late, to the game when it came to Baystate’s search for a successor for Keroack, but, with some additional encouragement from his executive coach, who once worked in the Baystate system and told him he needed to look into this opportunity, he hustled and became part of a large field of candidates. As noted earlier, he said he was familiar with the organization and its strong reputation within the industry.
“And in meeting with the board and others, what came across was a commitment to mission and community,” he told BusinessWest. “The academic nature, but also the community nature of the system was very attractive.”
He persevered through several rounds of interviews, including a lengthy discussion with the board about his vision for the system, and was chosen by the search committee in March.
Summarizing that vision, he said there are several components to it, everything from honoring a mission and legacy that dates back to 1883 to having a “more physician- and clinical-centered system”; from achieving growth and operating at scale to having a healthy balance sheet.
“We want to use our physicians and other clinicians to drive our strategy and what we do going forward,” he explained. “One of the things that impressed me being here and interviewing is that our cadre of physicians is one of the best I’ve seen in the country in terms of training, expertise, skills, and leadership.”
As for the bottom line, that balance sheet, he said COVID and its after-effects have obviously taken a toll on this and every other healthcare system across the country.
“But it’s all within reach,” Banko added. “Financially, our future is easily within our reach; it’s nothing that’s not attainable. I heard someone say I’ve got the toughest job in town, and I said, ‘no, I’ve got the easiest job in town; I’ve got a great group of people.’
“COVID wasn’t great, and the recovery afterwards has been worse, almost,” he went on. “We’re not facing any problems anybody else isn’t dealing with nationally — some more, some less — but I feel our future is attainable and within our grasp; we just have to go for it.”
Elaborating, he noted that, while all healthcare systems are facing the same issues and challenges, the solutions are local.
“The problems are generally the same … the solutions and how you work at them are very locally contextual,” he elaborated. “Workforce challenges in Boston are different than the ones we face here, but we both have them, and our solutions are not the same as what our colleagues in Boston are doing.”
As for those workforce issues he mentioned earlier, he said Baystate Health does have some advantages as it works to attract and retain talent, including its status as a teaching hospital, but also its location and comparatively lower cost of living.
“Being an academic center has put us in a better position,” he explained. “We can more easily work with the universities and colleges, we can partner more, and we have that academic setting where we can train and keep our own, which puts us in a unique position.
“Plus, this is a great area,” he went on. “It’s affordable, you can raise a family here, and that’s not true of a lot of places around the country.”
One of the keys to success with workforce moving forward is taking care of people, which includes the wages paid, but certainly doesn’t end there, he told BusinessWest.
“My view is that, if you take care of people and help them produce a good product, then growth and profitability will take care of themselves,” he said. “That’s where we have to start; we need to make sure that people want to work here and that we’re a workplace of choice and that we’re delivering a quality product for our community.”
Since arriving at Baystate, Banko says he’s been on a listening tour, one involving both internal and external constituencies, which will continue for the next several months.
What he hears, what he learns, and what he shares will all be part of a report to the board on his first 100 days at the helm, one that will update and likely add new layers of specificity to that vision he has for where this system can go in the years and decades to come — and how to get there.
Passing Thoughts
Getting back to those season tickets Banko has had since 2017 … there are four of them for each game, and he likes to share the wealth. And that includes work colleagues.
Which means some of his new team members will be journeying to South Bend in the autumns to come as the Irish pursue their first national championship since … well, Banko’s senior year.
They’ll also be contributing to another journey, one in which they’ll help write the next chapters in the history of this institution — a game with much higher stakes, and one for which he believes the winning formula is already in place.
As they say in football, it’s a matter of execution — and that will be a big part of Banko’s new job.
‘What happens now?’
