February 26, 2010 -- The leadership transition between a temporary contract management company and a permanent chief executive officer at the Regional Medical Center at Memphis is nearing completion.

Dr. Reginald Coopwood attended his first hospital board meeting Thursday morning since becoming CEO of the Regional Medical Center at Memphis.

FTI Cambio, the company that has been in charge of the publicly owned hospital for the past 18 months, presented its final report.

The companys contract ends Monday when Coopwood officially takes over, but he actually started work this past Monday.

Im humbled by the opportunity Im faced with, Coopwood said. But Im also happy about the position that FTI Cambio has put us in. I cant say thank you enough for what has been done, for what has been accomplished, for all the things you have embarked on over these 18 months.

FTI Cambio reduced staff, cut spending, improved insurance billing and implemented other changes that resulted in year-over-year savings of between $20 million and $25 million at The MED.

The hospital paid the company $10.4 million over the course of its contract.

Coopwood said the companys work gives him the opportunity to build The MEDs revenue while maintaining the expense savings implemented by FTI Cambio.

The challenges for Coopwood are many.

Although the hospital expects to end its fiscal year on June 30 about $2.4 million on the good side of the ledger, it is bracing for more cuts in state funding.

In total, The MED could lose as much as $52 million in state funding.

However, there is hope the cuts could be offset by a one-time tax or coverage fee proposed by the Tennessee Hospital Association.

The money generated would be matched on more than a dollar-for-dollar basis by the federal government if the Centers for Medicare & Medicaid Services (CMS) signs off on the plan, which also requires approval by the Tennessee General Assembly.

There is also the possibility CMS might match an additional $10 million in funding from Shelby County for the hospital.

What comes next remains to be seen, but Coopwood appears ready to deal with the challenges that await him.