PeaceHealth VP announces ‘decision to retire’

A third top PeaceHealth leader is leaving the organization, following months of turmoil over emergency department staffing at its Lane County hospitals.

PeaceHealth Executive Vice President and Chief Operating Officer Richard DeCarlo is retiring, according to a Thursday, July 16, announcement from President and CEO Sarah Ness to physicians and caregivers.

In an email, Ness said that after 10 years of service, DeCarlo “made the decision to retire.” 

DeCarlo’s exit follows those of Dr. Jim McGovern, former chief hospital executive for PeaceHealth Oregon, and Dr. Kim Ruscher, former chief medical officer — both of whom left their roles after nearly three months of public fallout over the health system’s decision to switch ER staffing companies in Lane County.

Lookout Eugene-Springfield asked PeaceHealth if DeCarlo’s retirement was planned before this year. Spokesperson Jim Murez said DeCarlo’s retirement was “a personal decision.”

Earlier this year, in February, PeaceHealth leaders announced plans to switch from the local practice Eugene Emergency Physicians to Georgia-based ApolloMD to staff its emergency departments at Cottage Grove, Florence and Springfield. 

Nearly 93% of the medical staff at PeaceHealth Sacred Heart Medical Center at RiverBend in Springfield voted they had no confidence in the decision made by McGovern and Ruscher. In response, DeCarlo publicly stated he “supports the final decision recommended by the Oregon leadership team, including Dr. McGovern and Dr. Ruscher.” 

About a month and a half later, McGovern was placed on administrative leave amid allegations that he worked outside the scope of his administrative license and tried to intervene in decisions about patient care.

McGovern isn’t the only administrator to be accused of working outside the scope of his license at PeaceHealth hospitals.

In Bellingham, physicians filed complaints in April with the Washington Medical Commission against the interim medical director of hospitalist services at PeaceHealth St. Joseph Medical Center. They alleged she influenced patient care without holding an active Washington medical license — exceeding the scope of her role, according to Cascadia Daily News.

At RiverBend, emails show that Eugene Emergency Physicians had reported the allegations about McGovern’s actions last year to PeaceHealth’s executive leadership, including Ness. The process to bring on a new staffing company began in the weeks that followed.

In response, local elected officials called for accountability. Physicians and nurses expressed an eroding trust in leadership that they believed enabled McGovern’s behavior. 

McGovern joined PeaceHealth in 2019, as vice president of medical affairs for the Oregon Network. He was promoted to chief medical officer in 2021 and again to chief hospital executive in 2024, after the closure of PeaceHealth’s University District emergency department.

PeaceHealth finally reversed course on emergency department staffing in May after four days in the courtroom in a lawsuit that Eugene Emergency Physicians brought against the hospital.

DeCarlo joined as PeaceHealth’s chief operating officer in 2017.

In emails obtained and authenticated by Lookout Eugene-Springfield about DeCarlo’s departure, Ness wrote, “I am confident this structure positions us to move forward with clarity, focus and continued momentum in our transformation. We will continue to thoughtfully evaluate and refine our leadership structure to ensure it remains fully aligned to our strategy and optimized to sustain our ministry for the long term.”

DeCarlo’s last day is Aug. 14.