Steve Massini is planning to retire this fall as CEO of Penn State Health following a five-year tenure marked by significant growth for the health system but also challenges for its transplant programs.
Massini oversaw the construction and opening of new hospitals in Cumberland and Lancaster counties, two of the region’s most competitive healthcare markets.
Massini also led the acquisition of Geisinger Holy Spirit Medical Center in East Pennsboro Township and several medical practices, as well as Penn State Health’s assumption of a 100% ownership stake in the Pennsylvania Psychiatric Institute following the dissolution of a joint venture with Pittsburgh-based UPMC.
In addition, he is credited with steering the health system through the Covid-19 pandemic, which stretched the financial and human resources of health systems around the U.S.
At the same time, the health system decided to halt its kidney and liver transplant programs this year as a result of what it described as “ongoing challenges” and concerns expressed by The United Network for Organ Sharing, a nonprofit that administers the organ transplant network in the U.S.
The career: Massini, a Penn State graduate, worked in finance and leadership roles at Geisinger before joining Penn State Health in 2015 as CFO of the Milton S. Hershey Medical Center.
Massini was named CFO of Penn State Health in 2016 as the system was attempting to merge with the former Harrisburg-based PinnacleHealth.
The union was abandoned in the face of stiff antitrust pushback and Pinnacle was ultimately acquired by UPMC. But in late 2017, Penn State Health forged a partnership with Pittsburgh-based insurer Highmark Health.
Massini is considered a key architect of the arrangement, which led to a shared investment of $1 billion in the growth of Penn State Health.
While the pandemic in 2020 and the ensuing inflation weakened Penn State’s finances, they have been bouncing back.
For the nine months ending March 31, Penn State Health had operating income of $48 million, up from a loss of $125.6 million for the previous nine months, according to financial reports disclosed to bondholders.
“Steve has provided calm and steady leadership during a period of great change in the healthcare landscape,” Penn State Health board chair Keith Masser said in a statement.
The vision: At the core of Massini’s leadership has been a push to transform Penn State Health from an academic healthcare provider into a regional health system with a deeper reach into the community.
The change has entailed bringing the system’s primary care, specialty care and hospital services closer to where people live and work.
“Steve is an incredibly talented executive and wonderful individual who has served Penn State Health with great distinction during his five-year tenure as CEO,” Penn State president Neeli Bendapudi said in a statement. “He has been a transformational leader, driving expansion of the health system’s clinical presence across central Pennsylvania and the development of innovative partnerships, including our continued collaboration with Highmark Health.”
What’s next: Massini is slated to retire as of Oct. 1.
In the weeks ahead, Bendapudi expects to announce plans and next steps for the leadership transition.
In the meantime, the health system continues to evolve.
Penn State Health recently launched construction of a cancer center at Hampden Medical Center in Cumberland County and began shopping for a new home for the psychiatric institute, which is based in uptown Harrisburg.
The background: Penn State Health operates its flagship Hershey Medical Center, Hampden Medical Center, Lancaster Medical Center, Holy Spirit Medical Center and St. Joseph Medical Center.
The health system also operates a children’s hospital, cancer institute and psychiatric institute, as well as a variety of other outpatient and clinical offices serving 29 counties in Pennsylvania.
It employs more than 19,700 people.
