Jim Millard is taking over as CEO of Kenmore Mercy Hospital just when the governor is proposing drastic budget cuts that will impact hospitals across the state.

Challenges are nothing new, though, for Millard, who steered St. Joseph Hospital in Cheektowaga under the umbrella of Sisters of Charity Hospital as part of the Berger Commission recommendations. The Berger Commission initially identified St. Joseph Hospital as one of the hospitals slated for closure.

“Jim Millard’s leadership was instrumental in our efforts to save St. Joseph Hospital,” said Joseph D. McDonald, president and CEO of the Catholic Health System, which operates Kenmore Mercy. “He brought together our associates, physicians and the entire community to advocate for us and keep the campus open.

“In addition, he was responsible for the planning and construction of St. Joseph Hospital’s $10 million state-of-the-art emergency department in 2005, one of the finest ER’s in the Northeast,” McDonald added.

Millard was named Kenmore Mercy’s CEO on Monday; he begins his tenure there Jan. 5.

Millard, who lives in Elma with his wife and three children, said he understands the challenges the Catholic Health System faces in the coming year, particularly with Gov. David Paterson’s proposed budget.

“They really are devastating,” Millard said of the governor’s proposed $700 million in cuts to hospitals. “What’s been proposed, that really is going to have a devastating impact on Kenmore Mercy, and it’s not just us, it’s all the hospitals,” he said.

Millard said he understands what the governor needs to do. “But when you take a look at some of the cuts, they just don’t make sense.”

That’s where Millard’s involvement with the Western New York Health Care Association comes into play. Millard currently serves as chairman of the organization, comprised of the CEOs of hospitals across the region.

In the face of the proposed budget reductions, Millard said it’s important to maintain the foundation his predecessor, Mary Hoffman, established at Kenmore Mercy. Hoffman is leaving to take a position with Lawley Benefits Group.

“I’m excited to step into a great hospital, and hopefully we’ll continue to move forward,” Millard said. “I’m most excited that there’s a great foundation here that’s been built by Mary Hoffman and (Vice President of Operations) John Herman.”

Millard is no stranger to the Catholic Health System. A graduate of Medaille College and the University at Buffalo, Millard began his career as an intern in the pharmacy department at St. Joseph Hospital in 1981. He served as the hospital’s pharmacy director from 1987 to 1991, and held the same position at Sisters Hospital for one year afterward.

He was named the assistant vice president for operations in 1992. Millard was the vice president of operations at Kenmore Mercy, Sister of Charity and St. Joseph hospitals from 1999 to 2000, then was VP of operations at St. Joseph for several years before becoming its president and CEO.

“Jim is a seasoned and tested CEO,” said Dennis Dombek, chairman of Catholic Health’s Acute Care Board of Directors. “His leadership, compassion, toughness and intelligent decision-making are a great fit for Kenmore Mercy. He knows the hospital and many of its associates and physicians.”

“I think it’s a great fit,” Millard said. “I understand the dynamic and the relationship across the system. Working with Mary Hoffman, I think I have a good understanding coming in.”

While at St. Joseph Hospital, Millard was actively involved with the Cheektowaga Chamber of Commerce. He said he’s looking forward to meeting residents of the Tonawandas and getting involved in the community. “I need to get out and meet the community and make sure the community knows who I am,” he said.

Contact reporter David J. Hill at 693-1000, ext. 115.