Razaghi Healthcare is the executive management and healthcare consulting company hired by the Board of Directors to oversee management of the hospital.  The company provides executive management, management consulting, technology development, and facilities development services to Sage Memorial Hospital and its Board. Razaghi Healthcare has been working with Sage since late 2007.

History with Sage Memorial Hospital

Prior to Razaghi Healthcare, the Sage Memorial Hospital’s Administration was unable to correct health care program deficiencies cited by the Arizona Department of Health Services dating back to February 2003. As a result, the Hospital voluntarily cut numerous health care services including labor delivery (OBGYN), inpatient pediatrics and nursery, and surgery, and was on track to close its inpatient hospital, emergency department, clinical pharmacy, physical therapy, medical imaging, and laboratory.

The Board of Directors hired the management company Razaghi Healthcare, and Ahmad R. Razaghi to assume temporary CEO responsibility in October 2007. At that time, Sage was on the path to closing its hospital, emergency department, and other outpatient services. It had lost its Joint Commission Accreditation, and was in the process of involuntary termination of its certification by the Center for Medicare Services, and revocation of its license by the Arizona Department of Health Services.

Over the next two years, Razaghi led a turnaround team that systematically corrected the AZDHS Deficiencies preventing further closure of the existing health care services lines. In 2010 – 2013, his executive leadership facilitated the Hospital’s ability to expand numerous health care programs, and establish new ones. In 2009, Sage was able to reestablish its Accreditation by the Joint Commission, and has held it ever since.

No services were cut during Razaghi’s tenure. However, it is not possible for the Hospital to bring back health care services that were voluntarily cut by previous Administrations (labor delivery (OBGYN), nursery, and surgery) because the Hospital, built in 1964, would be required to be in compliance with current architectural and building codes costing the Corporation tens of millions of dollars. However, under Mr. Razaghi’s leadership, the hospital has now established a secure financial position that it can use to pursue new facilities and begin restoring services. Today, Sage provides the highest standard quality of health care, is financially secure, and has an outstanding executive team. The future is bright for Sage, its patients and staff, and the Navajo Nation communities it serves.


How does hiring a management company work?

Razaghi Healthcare is hired by the Board of Directors to provide management of the day-to-day operations of the hospital. The Board and Razaghi Healthcare work together to agree upon a contract for the scope of work over a specific amount of time and negotiate a fair market value management fee to be paid by the hospital for the management company’s services.

Won't it limit the authority of the Board over the hospital?

No. Razaghi Healthcare is entirely answerable to the Board of Directors and the Board evaluates its performance each year. If the management company does not satisfactorily complete its scope of work and is evaluated as such, the Board may terminate the contract.

What is the benefit of hiring a management company?

Hiring Razaghi Healthcare to manage the day-to-day operations of the hospital provides several major benefits. First, it allows the Board to be strictly focused on strategic decisions for the overall betterment and development of the hospital and its services, instead of focusing energy on day-to-day decisions. Second, Razaghi Healthcare possesses extensive industry experience, ensuring the hospital is receiving the most qualified management available. This results in increased operational efficiencies across all departments, improving the hospital’s quality of service and decreasing general and administrative costs (non-patient care costs).

Generally, what are the management company’s specific responsibilities?

Razaghi Healthcare is first and foremost responsible for supervising and overseeing the efficient management of the operations of the hospital. The Board specifically designates which scopes Razaghi Healthcare will be responsible for in its contract. Such scopes typically include, but are not limited to: the responsibility of ensuring the hospital has a highly qualified, experienced professional in the CEO position; administration of administrative personnel; administration of accounting procedures and controls; developing reports and budgets to be approved by the Board; collection of monies owed to the hospital; overseeing preparation of Medicare cost reports; preparing and negotiating the hospital’s self-determination and annual funding contract with the Indian Health Services, if applicable; negotiating and managing all other contracts for the hospital; and the management of hospital investments and funds. Razaghi Healthcare is not responsible for any matters requiring professional medical judgment.