Montage Health announces its new CEO, taking over in spring 2025.

A new president and CEO of Montage Health is stepping up to take over for the retiring Dr. Steven Packer next spring. Dr. Michael P. McDermott, currently CEO of Mary Washington Healthcare in Fredericksburg, Virginia, has been named as Packer's successor after a nationwide search, Montage officials announced Monday, Dec. 2. 

McDermott has led MWH since 2015, after practicing medicine with Radiologic Associates of Fredericksburg and transitioning into leadership roles. He holds an undergraduate degree from Villanova University, a medical degree from the University of Cincinnati College of Medicine and has advanced training in diagnostic radiology and interventional radiology from the University of Maryland Medical System.

In addition, McDermott earned an MBA from the University of Virginia Darden School of Business.

Mary Washington Healthcare is a nonprofit regional system with two hospitals, four emergency departments and over 60 other outpatient clinics and specialty offices.

He's also been recognized as a top physician leader by Becker’s Hospital Review and is a fellow of the American College of Radiology and of the Society of Interventional Radiology. McDermott was named a Baldrige Executive Fellow, a national leadership development program for executives.

“Speaking on behalf of the Montage Health Board of Trustees, we are thrilled to welcome Dr. McDermott to lead this exceptional organization into its next chapter,” said Bill Warner, chair of the Montage Health Board of Trustees, in a press release. “Dr. Packer’s visionary leadership has created a solid foundation, and we are confident that Dr. McDermott will continue to build on that success as we strive to improve the health and well-being of our community.”

Packer has served as Montage's leader for 25 years. His accomplishments include expansion of the Community Hospital of the Monterey Hospital to double the number of patient rooms, construction of the Carol Hatton Breast Care Center and creation of Montage Medical Group, as well as the county's first Medicare Advantage program, Aspire Health Plan, with Salinas Valley Health.

During his time Montage also opened wellness centers in Marina and Salinas, three MoGo Urgent Care clinics, the Montage Health Foundation and the Ohana Center for Child and Adolescent Behavioral Health.

He leaves as Montage Health faces new challenges, including the arrival of a new competitor to the region, Kaiser Permanente, opening its new clinic on Dec. 4, and state scrutiny of hospital prices in Monterey County, which are some of the highest in California and the nation.

Montage has faced specific criticism from local union leaders and others as the highest priced hospital in the county. They contend the hospital has a monopoly on the Monterey Peninsula, a charge Packer has rebutted, arguing that the three biggest hospitals—CHOMP, Salinas Valley Health and Natividad—are engaged in "robust" competition.

The California Office of Health Care Affordability recently launched an investigation into the county's hospital market and the impact on residents. The OHCA Board is expected to consider limiting the three hospitals' spending to an increase of just 0.1 percent annually. 

In response to the continued calls for regulation, Montage announced at the end of August it would be cutting costs by $50 million through the end of 2026. 

McDermott will be inheriting those challenges, along with plans to expand CHOMP again in the coming years, with a new wing and parking garage.

In a written statement, McDermott said his is "grateful for the opportunity to build upon Dr. Packer's legacy and join Montage Health, a health system I've admired for years."