Trying to add a payment method? You can do this on the 
QuickTake:
Kim Ruscher, the chief medical officer of PeaceHealth Oregon, has resigned from her position, after a period of public fallout over the controversial decision she and other PeaceHealth leaders made to switch emergency department staffing from a local practice to a national company, a decision later reversed.
Dr. Kim Ruscher, chief medical officer of PeaceHealth Oregon, has resigned from her position.
In an internal email, obtained and authenticated by Lookout Eugene-Springfield, Ruscher announced her plans to step down Thursday, May 21. She plans to move into another role, spokesperson Joe Waltasti confirmed.
Since 2024, Ruscher has served in the role in which she worked on patient quality and safety with medical staff at PeaceHealth Sacred Heart Medical Center at RiverBend, Cottage Grove Community Medical Center, and Peace Harbor Medical Center in Florence.
“It has been a pleasure to serve PeaceHealth as a surgeon beginning in 2013, and more recently as CMO,” she wrote. “I care deeply about Lane County and it is still my home. In listening to the voices of the RB MEC (RiverBend Medical Executive Committee) and some leaders, to help us all take a breath and be able to move forward, I am taking a leave.
“I do not intend to return to leadership at RB and am partnering with PeaceHealth to find a meaningful role,” she wrote. “I am voluntarily taking a personal leave, both to recover from the last several months and to spend time with and care for an ill family member.”
Ruscher declined to provide comment when reached by phone.
Ruscher was appointed by Dr. Jim McGovern, who left his role entirely May 14 following more than a month of administrative leave. McGovern and Ruscher were among the PeaceHealth leaders behind the controversial switch from the local practice Eugene Emergency Physicians to Georgia-based ApolloMD to staff its emergency departments in Lane County.
That decision was reversed in early May following three months of public fallout between the health care system and Eugene Emergency Physicians. The physicians group held rallies, turned to elected leaders for help, and brought forth a lawsuit that challenged the transition. They contended it violated Oregon’s new law on corporate medicine.
As part of the lawsuit, Ruscher took the stand, where she testified about the requests-for-proposal process — the procurement method in which leaders at PeaceHealth scored applications from EEP, ApolloMD and two other groups.
U.S. District Judge Mustafa Kasubhai asked Ruscher about “bad blood” between PeaceHealth and EEP.
In response, she said, “It is not a perfect relationship.”
Testimony from Ruscher and others involved in the process revealed that the scoring for the applications placed significant weight on a group’s proficiency in recruitment and managing transitions. As a result, EEP received a lower score in this specific category.
A preliminary agreement between PeaceHealth and EEP put the arguments for the case on pause May 6. Almost two weeks later, Wednesday, the plaintiffs — including EEP — filed for Kasubhai to dismiss their case. PeaceHealth and EEP announced a signed final agreement the same day.
PeaceHealth CEO Sarah Ness visited RiverBend this week to meet with staff and the RiverBend Medical Executive Committee, a peer-nominated group of physicians and department chairs who meet with executive leadership on behalf of the broader medical staff.
In an internal announcement about the renewed contract, Ness wrote, “I recognize that trust has been deeply strained and that rebuilding your trust can only happen through actions: transparent processes and decisions, clear, authentic communication and sustained attention to clinical concerns. You can expect improved follow‑through, greater transparency and renewed engagement as we move forward.”
She also encouraged staff to have “open dialog” with leaders including Ruscher.
Thursday afternoon, Heather Wall, interim chief executive of the PeaceHealth Oregon region sent a follow-up email to Ruscher’s announcement. Wall said a search for a new chief medical officer is underway and that, in the interim, Dr. Heather McArthur will serve in the role for RiverBend and Cottage Grove and Dr. Matt Bzedga will serve in the role for Peace Harbor.
“I want to thank Dr. Ruscher for her 13 years of service in Lane County and look forward to working with her in a new capacity moving forward,” Wall wrote.
Have something to say?
Send us a Letter to the Editor. Read our guidelines for Letters to the Editor here.
