TRAVERSE CITY — The board that oversees the Grand Traverse Pavilions is close to hiring a new CEO for the historic senior care facility.
Two finalists out of an initial applicant pool of hundreds will be visiting the area in the next seven days to meet with county officials and tour the facility. They’ll also have a chance to enjoy a group dinner in a less formal setting and explore the community.
Once the final selection is completed, the new CEO will be charged with hiring an “administrator” to oversee daily operations – a significant change from the previous management structure.
“The Pavilions is the largest county-owned medical care facility in the state,” said Mary Marois of the GTC Department of Health and Human Services (DHHS) board. “Many of the other facilities have adopted the concept of splitting the job in two because it’s really too much for one person.
“In the one-person model, you have to be micro-focused on daily issues that rise to the top of your priorities list. That sometimes comes at the cost of not paying attention to the rest of the organization or pursuing larger goals and objectives.”
The previous CEO, Gerard Bodalski, resigned in late December after just 11 months on the job following allegations about his conduct toward certain employees and residents. Those allegations were investigated by an independent law firm before Bodalski’s resignation.
Interim CEO David Hautamaki has been at the helm since early 2025, a temporary role he has assumed before.
Located on the grounds of the Grand Traverse Commons, the Pavilions provides skilled nursing care, assisted living quarters, respite care and rehabilitation services to more than 165 low-income senior citizens.
The majority of Pavilion residents live in the skilled nursing facility. Another 50 or so who don’t require that level of care are in the assisted living center nearby, which provides them with a supported living environment.
200+ APPLICANTS
Unlike the last CEO hiring process, the DHHS board did not use a private search firm to research and recommend candidates this time. Instead, it relied on Pavilions HR specialists to solicit applications from around the nation.
More than 200 people submitted applications. That long list was winnowed down to six this spring.
Board members Marois and Carol Crawford said they were “very impressed” with all six people they interviewed, but ultimately decided on two: Darrell Lavender of Louisiana and James Arp of Oregon.
Officials said they’re pleased that both men have ties to Michigan.
Darrell Lavender is currently CEO of the Riverside Medical Center in Franklinton, Louisiana, a “critical access hospital” with nearly 350 employees and 125 medical staff. He was previously president and CEO of the Pratt Regional Medical Center in Pratt, Kansas.
From 2012 to 2021, Lavender was chief operating officer at Munson Healthcare’s Manistee Hospital. He is a member of the American College of Healthcare Executives and former member of the Healthcare Financial Management Association.
He earned a master’s degree in business administration and a bachelor’s degree in science and health care administration from the University of Michigan, Flint.
James Arp was most recently CEO of the Mary’s Woods Senior Living Community in Lake Oswego, Oregon. The faith-based nonprofit facility offers a continuum of care services, including independent living, assisted living, memory care and residential care with 24/7 nursing support.
He previously worked as senior vice president and COO of home and community care at Providence St. Joseph Health in Portland, Oregon, as well as similar positions in Missouri and California.
Arp earned an MBA and master’s degree in health care administration at the University of Missouri, Columbia, where he also earned a bachelor’s of science degree in health service management. Like Lavender, he is also a member of the American College of Healthcare Executives.
A final decision on the new CEO is expected in June, according to county officials. Salaries for the new CEO and future administrator have not been set, they added.
Before he resigned, Bodalski received an annual salary of $200,000 plus various other benefits.
Nationally, salaries for CEOs of a senior living center range from about $83,000 up to $609,000, depending on the location, facility size and other factors, according to the Multi-Facility Corporate Compensation Report from the Hospital & Healthcare Compensation Service.
LOOKING FORWARD
The Pavilions went through a period of financial and operational turmoil in 2021-24 that culminated in a multimillion-dollar deficit, staff turnover and lawsuits.
That period of financial crisis largely came to an end in January 2024 when the Pavilions received nearly $7 million in overdue payments from the federal Employee Retention Credit program that spanned much of the COVID-19 pandemic.
DHHS board member Crawford, who previously has served on the Grand Traverse County Board of Commissioners, said Tuesday that the Pavilions today is “absolutely stable,” financially speaking, with a strong census (resident/patient count).
Most residents and outpatients of the Pavilions are eligible for insurance coverage through Medicaid, a federal-state program for low-income and indigent individuals.
Going forward, DHHS officials said they’re hoping the new CEO will help the Pavilions make the best possible use of available facilities and further develop the referral stream that brings in new senior care residents throughout the year.
“We’re looking to open the Aspen wing of the main building that was closed after COVID,” Crawford said. “Another key opportunity is increasing the use of our physical therapy and occupational therapy resources, which are some of the best in northern Michigan.”
Marois added that the Pavilions Foundation will play a significant role in guiding the facility in 2025 and beyond.
The fate of the three independent living quarters on the Pavilions campus – known as the “cottages” – is yet to be decided.
While the cottages are treasured for their 19th century architectural grandeur, they may need substantial and costly renovations to bring them up to modern care standards. Officials said the new CEO will provide leadership and financial expertise to tackle that issue, which is “currently on hold.”
Recruiting, training and retaining quality staff is an ongoing priority that will continue under the new CEO/administrator management structure, they added.