Dr. Mike McDermott reflects on his first 90 days with Montage Health

This place is magic.

I’m thrilled to say that’s my core impression after 90 days as the new chief executive officer of Montage Health.

The magic begins with the people providing the care, who I’ve watched deliver it daily with positivity, pride, and expertise. It continues with the sophisticated level of care, usually seen only at larger hospitals and healthcare systems. And the magic is visible in our facilities, which are both beautiful and state-of-the-art.

These aren’t just subjective observations by the new guy. There’s objective data behind this magic. Among our recent recognitions: Community Hospital of the Monterey Peninsula is in the top 5 percent of hospitals nationally for overall care, and in the top 15 percent for patient experience, according to Healthgrades. And the prestigious American Institute of Architects recognized Ohana, our youth mental health program, for its “innovative and spectacular” interior spaces.

Going forward, our biggest challenge is preserving the magic of Montage Health in the face of some strong headwinds — especially related to healthcare costs. In short, we expect reimbursements for our care to go down while our costs go up. In April, the California Office of Healthcare Affordability announced a significant price cap for Community Hospital and six others across the state, starting in 2026. We have raised concerns about the fairness and accuracy of the data that led to this action, but this is the environment we are in. In addition, deep cuts in healthcare spending are expected under the next federal budget, now being debated in Congress. At the same time, costs for labor, supplies, and other expenses continue to climb.

These realities are serious, but they don’t change our fundamental commitment. Affordable care isn’t just important — it’s a moral imperative. Our community deserves access to care that doesn’t come at the cost of their financial stability or well-being. For the health of those we serve — and our shared future — we must act decisively. So, the question isn’t whether we’ll meet these challenges, but how we will rise to them, together. We're building on existing initiatives to be as efficient as possible, making the best use of our resources. We’re also seeking new ideas, from others in healthcare and from our own staff, who see opportunities firsthand. One example is our intensifying efforts to improve the efficiency of care of patients in our hospital by eliminating waiting times for testing and treatment. These efforts remove bottlenecks and increase our capacity, allowing us to free up beds to care for someone else in need.

Another effort includes adopting more standardized care protocols, developed by our physicians and staff. When we do this, the cost of care goes down and quality goes up because staff members know the protocols, creating a safer environment with lower risks of complications.

Continuing to pursue growth opportunities is also part of our plan. It’s a win-win, giving people the care they need close to home and supporting our sustainability. Most recently, we partnered with University of California, San Francisco, to provide advanced neurosurgical procedures like thrombectomies to remove blood clots in the brain. We also recently welcomed Monterey Spine & Joint to become part of Montage Health, preserving a trusted local source of orthopedic care.

After spending the last three months listening to and getting to know our staff, leadership, medical staff, and community, I’m grateful to be on this journey with all of you. With your support, I know we have everything we need to continue creating the magic that is Montage Health.

Mike McDermott, MD, MBA
President and Chief Executive Officer
Montage Health