BY JOSEPH B. NADEAU

WOONSOCKET — Gary J. Gaube’s tenure at Landmark Medical Center is coming to an end. The hospital’s CEO for nine years and a member of Landmark since 1988, Gaube announced Monday he will be leaving Landmark at the end of the year.

“I take great pride in the success we achieved in bringing new and expanded healthcare services to our community,” Gaube said in a statement announcing his resignation. “There is no doubt, however, that these are trying times financially for all community hospitals, and I  feel the timing is right to announce my departure as Landmark begins a new chapter in its long history,” Gaube said.
Gaube’s resignation comes after Landmark entered a form of court-governed receivership in June while seeking to partner with another health care organization to continue its role serving elderly and low to moderate income residents in the area.
The naming of a court-appointed special master, Jonathan N. Savage, was sought to protect Landmark’s assets from a heavy burden of long-term debt as the search for a partner continues.
Landmark added many new programs and services during Gaube’s tenure as the community hospital attempted to cover its longstanding operating constraints, a high level of indigent care and low insurance reimbursement rates, with state-of-the art treatment services. Gaube sought and received state approval for development of such services as linear accelerator radiation treatment and cardiac catheterization and open-heart surgery. Implementation of the new services included the construction and staffing two completely new wings in the hospital.
Landmark has dropped open-heart surgery services in its bid to survive but continues to offer the catheterization and cancer treatment programs in the new facilities.
The fiscal realities of the current health care market have put Landmark in the position of staking its survival on the search for a partner organization and the expectation that a cooperative effort will allow the hospital to realize the best use of its services and programs while continuing to provide care to its local patient population.
Although heavily burdened with debt exceeding its assets by more than $7 million, Landmark has maintained its growth of new services makes it one of the most efficient and low-cost hospitals offering high-quality care in the state.
“I have every confidence that Mr. Savage and his team will work to preserve Landmark and ensure that we maintain high-quality healthcare for the northern Rhode Island Community. I will continue to assist the hospital and Mr. Savage during this transitional process,” Gaube said in his statement.
The CEO will also be assisting that process with his departure. Gaube earned $500,000-annually as the hospital’s top employee and has waived his right to a severance package valued at approximately $2 million, Bill Fischer, Landmark’s spokesman said Monday.
“This was a voluntary resignation by Mr. Gaube,” Fischer said while noting Gaube’s statement spoke best to his reasons for going now.
Fischer said Gaube has been serving the hospital in an advisory capacity since June 25 and will continue to serve in that capacity for the remainder of the year.
Gaube, Fischer said, would be viewed as a valued member to another health organization when his service to Landmark ends, adding “I would expect he will take sometime and weigh those options.”
 As for Landmark’s search for a suitable partner, Fischer said the hospital had talks with prospective purchasers last week and will be having more discussions this week with additional parties.
 “The discussions have been positive,” Fischer said while declining to provide further details on the ongoing talks.
 Landmark also expects to receive a second special master, a person with high health care qualifications, later this week. Superior Court Judge Michael A. Silverstein, the judge in charge of Landmark’s receivership, Savage as special master, and Attorney General Patrick Lynch, charged with protecting Landmark’s publicly donated assets, have all been involved in the search for that candidate, Fischer noted.
 Savage, as special master, is now in charge of all aspects of Landmark’s operation and last week reported to the court that the hospital has a strong cash flow position with over $7 million in liquidity assets.
 “This is an ongoing process and I think this special master process could last anywhere from 12 to 14 months,” Fischer said.
 “There has been no downsizing of programs, we have not seen a decline in the number of the patients we are seeing and the quality of care being delivered is high,” Fischer said of Landmark’s continuing operations.
 As of Monday, the state Department of Health had not yet been formally notified of Gaube’s resignation, according to Ann Marie Beardsworth, a department spokeswoman. Savage is in charge of everything occurring at Landmark, she noted and referred questions about such changes to his office. Savage could not be reached for comment.