Wiles and the board of trustees began a process more than one year ago to plan for his retirement. Today's announcement culminates that process. Wiles will be retiring after 41 years of dedicated service to the not-for-profit health system and to the hospitals and organizations that preceded the formation of Novant Health in 1997. Armato has served in leadership positions with the organization for the past 13 years and was promoted nine months ago to his current position.

"As chair of Novant Health's board of trustees, I'm excited about this news on two levels," explained Lisa S. Evans, MD. "Over the next three months, we all will have the opportunity to honor and celebrate Paul's strong and visionary leadership of Novant Health and his many contributions to the healthcare industry, and to wish him all the best during retirement. In addition, we are very excited about Carl's appointment as the system's next president and chief executive officer."

Wiles joined the organization in 1970 as a hospital administrative resident while he was still in graduate school and then advanced to vice president of professional services and later to senior vice president & chief operating officer of Forsyth Medical Center. In 1985, Wiles was named president and chief executive officer of Carolina Medicorp and Forsyth Medical Center, the Winston-Salem based predecessor organizations of Novant Health. He became president and CEO of Novant Health in 1997 when Carolina Medicorp and Forsyth Medical Center merged with Presbyterian Healthcare in Charlotte to form a new not-for-profit health system.

Wiles, 64, currently serves on the University of North Carolina Chapel Hill School of Public Health Advisory Council and the North Carolina Hospital Association's Center for Hospital Quality & Patient Safety Advisory Board. In addition, he is a past board chairman of the North Carolina Hospital Association and the national VHA, a shared services company that serves 1,400 not-for-profit hospitals and approximately 24,000 other healthcare organizations. Wiles also serves on a number of community boards and committees.

When he began his career, the organization consisted of one hospital with annual revenues of $20 million. Today, the health system's annual revenues total $3.5 billion.

"Under Paul's leadership, Novant Health has grown rapidly from its origins as a stand-alone hospital into a four-state health system with 25,000 employees, 13 hospitals and one of the largest medical groups in the nation with 360 clinic sites," Evans noted. "While that growth is important, it's not the primary source of pride for Paul and his staff. Novant has become a national leader in improving the quality and safety of patient care. And the organization lives its not-for-profit mission of serving communities and reaching out to vulnerable people who need assistance. For Paul and his team, fulfilling this mission is, and has been, the most important goal."

Armato, age 46, joined Novant in 1998 as the vice president of finance and operations for the health system's physician clinic division, now known as the Novant Medical Group. He then served as senior vice president of materials management and logistics. In 2003, Armato was appointed chief operating officer of Presbyterian Healthcare. One year later, he was promoted to president and chief executive officer of Presbyterian. In 2008, he assumed a system-wide role as an executive vice president and was named Novant Health's chief operating officer in February of this year.

Prior to joining Novant Health, Armato was a vice president with General Health System in Baton Rouge, La. Early in his career, he worked as a tax and audit consultant for Ernst & Young in Baton Rouge. Armato is a certified public accountant and a member of the American Institute of Certified Public Accountants. He currently serves as the board chairman of the Mecklenburg Citizens for Public Education and has volunteered in other civic roles involving scouting and the heart association.

Robert Gordon, a member of the Novant Health board of trustees and chairman of its leadership committee, led the succession planning process. He explained that Wiles and the board began early to prepare the organization for a transition in leadership.

"In today's unstable economic environment and with all of the changes the healthcare field is facing, it's very important to maintain momentum when leadership changes occur inside an organization as complex as a large integrated health system," Gordon said. "By sharing his retirement plans with us early on, Paul allowed the board the time to very thoughtfully select a new president and chief executive officer and to create the opportunity for Carl to work more closely with Paul during an overlapping transition period."

Gordon explained that the Novant board has held regular management succession discussions with Wiles over the years and after learning of his planned retirement date, the board followed a comprehensive and disciplined selection process that included the following major components: a thorough review of the emerging healthcare environment; affirming the organization's strategic direction; and defining the experiences, skills and personal characteristics needed by the organization's next president and CEO so that the board could effectively assess candidates.

To guide the board through this process, the trustees hired an advisor who had been a senior principal with an international executive search firm and who had also headed its healthcare practice. The board examined the pros and cons of searching for candidates outside the organization and concluded that an external search was unnecessary. The board unanimously agreed that Armato met its requirements and had already earned the respect of the board and the Novant organization.

"Without question, Paul will leave behind some very big shoes to fill when he retires," Gordon commented. "But the board is confident that Carl is ready to step into that role and to successfully lead the organization into the future."

Wiles agreed with Gordon's assessment of Armato.

"Since Carl joined Novant, he has repeatedly demonstrated a remarkable ability to engage frontline staff and physicians in a meaningful way. He formed and led strategies to create partnerships with physicians and provide them with a meaningful voice in our operations and planning. He combines visionary thinking with passionate inspiration."

Armato emphasized that he passionately believes in the strategic direction of the organization.

"Several years ago Novant Health adopted a new vision under Paul's leadership, 'to deliver the most remarkable patient experience, in every dimension, every time.' That's a lofty objective but it's also the precise goal we should be aspiring to achieve. I want every patient who has an encounter with our organization to experience that commitment."