The Powers That Be
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Chapter I, Beginnings:“Nothing ventured, nothing gained”:“Gordon, I want you to know that this is no ordinary situation. I have known this Saudi family for many years. They are the owners of the National Commercial Bank (NCB), which is the largest private bank in the world. This is no ordinary hospital. It is probably the most lavish and high tech hospital anywhere in the Middle East. It’s not even completed yet. You must believe me when I tell you that Sheikh Khalid Bin Mahfouz is very influential. If the family wishes to see you about running their hospital, frankly I’m surprised that they have not already sent one of their private jets to receive you. Catch the next flight to Houston. We have a lot to do quickly.”
Chapter II, Encounters:“If you only knock long enough and loud enough at the gate, you are sure to wake up somebody”: Dr. Rayes briefly introduced me as the new CEO and stated that I would be starting on duty April 1st. The reception was certainly not warm, but rather sterile with a bit of tension. A couple of the key physicians had failed to show up because of supposedly prior commitments. Jerry had warned me that working with these doctors was going to be about as much fun as swimming in a shark tank
Chapter III, Kick-Off:“Any fact facing us is not as important as our attitude towards it, for that determines success or failure”: The bi-weekly Thursday night party at the “Brass Eagle” located within the American Consulate was one of the functions I enjoyed and looked forward to. Walking through the doors of the Brass Eagle was like stepping back into a party back in the States. The drinks were the real McCoy, the bands were always swinging, and the western girls were decked-out in their tights with their abayas (a black long over coat) left at the entrance
Chapter IV, Taj Mahal:“Vanity, vanity, all is vanity”: Ulf was adamant. “Gordon, we must get some type of signed contract between our company and your owner. The cost of this project keeps on going up with all the changes and upgrades being requested. There is a schedule of payments, and your owner is not keeping to the agreement. If funds are not received soon, we will have to begin stopping payments to the sub contractors and the project will come to a grinding halt”. “Ulf, pray that Sheikh Khalid’s National Commercial Bank (NCB) continues to prosper”, I stated
Chapter V, Uphill Climb:“The achievement of your goal is assured the moment you commit yourself to it”: “Gordon, have you seen yesterday’s front-page editorial column in the Wall Street Journal? According to this article, A.R., Sheikh Sultan, and perhaps other members of the Bin Mahfouz family members have been providing financial support to Osama Bin Ladin”.
The Wall Street Journal article mentioned above and his association with the failed Bank of Credit & Commerce, Islamabad (BCCI), the U.S. missile attack on the Sheikh’s rumored pharmaceutical factory in Sudan, and hints of his being under house arrest were all disturbing. As a result of these issues, some true and some false, Sheikh Khalid was falling out of favor with the Royal Family who desired to appear “squeaky clean” in the eyes of the West.
Chapter VI, Reflections:“There is no sudden leap into the stratosphere. There is only advancing step by step, slowly and tortuously, up the Pyramid towards your goal”: On the elevator with Dr. P.K. was a rather ordinary looking Saudi gentleman wearing the traditional Arab male white thobe and checkered red and white head gutra. Not until she was off the elevator did she realize that this was the Sheikh. She felt badly that she had not recognized him and wished him well. He was known to be a modest and unassuming individual who did not flaunt his wealth
Chapter VII, Metamorphosis:“The first step towards getting somewhere is to decide that you are not going to stay where you are”: The one major goal that continued to prove elusive was improving our cash flow situation. The government owned Saudi Arabian Airlines owed us about eighteen million riyals. The government services, such as Saudia Airlines, and many members of the Royal Family were notorious for being very poor payers. This problem was proving very difficult to solve
Chapter VIII, Day of Rest:“All work and no play make’s one dull and gray”: I had decided that after just a few more kilometers if we could not find the old palace, I would turn the Land Rover around and simply backtrack out of the desert to the main highway. Even that would have been difficult. We came upon a Bedouin camp at precisely forty kilometers into the desert. There was an old Bedouin woman covered with the traditional black abaya standing outside one of the tents. She really stood out against the white sandy background and monotonous colors of a bright day in the desert
Chapter IX, Chosen Few:“Pride goes before destruction, a haughty spirit before the fall”: The Chosen few (Royal Family) have an enormous responsibility on their shoulders. They should be quick to discipline family members who sometimes exploit their wealth and power for direct personal gain. They must also be quick to punish those radical Islamic clergy members who are encouraging extremist activities. Fortunately, they have a powerful role model to look up to for guidance and wisdom in the founder of the country, King Abdul Aziz Al-Saad
Chapter X, The Mirage:“As I grow older, I pay less attention to what men say. I just watch what they do”: Dr. Morehead continued, “Royal Family members spend more time here in Jeddah than they do in Riyadh. You have a unique hospital that happens to be located where we have a need and extra bed capacity in the VIP bed tower. We believe that we can develop a unique strategic collaboration where we can parley off each other’s strengths”
Chapter XI Betrayals:“Return to the root and you will find the meaning”: “Good morning, Gordon. I want you to know that I didn’t know about this change until last week. We felt best to keep this completely confidential until the official Royal Decree was released”.“Damn it, David, how can I trust you? You have given us the wrong picture all together. What happened to our strategic collaboration that would parley off each other’s strengths? If I heard you say that phrase about strategic collaboration once, you said it a hundred times. What do you mean that you have just ordered a legion of soldiers to guard the entrances to the hospital! Why?”
Chapter XII, Aftermath:“Acceptance of what has happened is the first step to overcoming the consequences of any misfortune”: As anticipated, the meeting with the ex-physician Dept. Chiefs was quite tense. “Gentleman, what has happened concerning the Royal Decree has happened and we cannot change it. Inshalla, special funds will be received from the Palace to pay all of the outstanding compensation due. Hopefully, I can convince Sheikh Khalid of the importance of releasing your sponsorships so you can find new employment within the Kingdom if you desire”
For just a moment, I felt that deep hollowness in my chest, that numbness that all was lost. Than just as quickly, I experienced a sensation that a huge weight had been lifted from my shoulders. All of the endless frustrations in dealing with the Palace and King Faisal Hospital officials would soon be ending. Unlike the great majority of my colleagues, I was fortunate to have a round-trip ticket back to the greatest country in the world
Note:Sheikh Khalid Bin Mahfouz passed away in the summer of 2009. The Bin Mahfouz family remains a very influential, well respected, and successful private family in K.S.A. The “take over” of Sheikh Khalid Bin Mahfouz’s Al Salama Hospital, and subsequently the NCB, was a dramatic ordeal for those involved and a stark reminder of the realities and potential risk of conducting private business in a monarchy where the “Rule of Law” is limited.
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About the Book
The Powers That Be is the exciting and adventurous non-fiction account of one American's fascinating experiences as the Chief Executive Officer of a highly prestigious private hospital in the Middle East, at that time, owned by one of the richest and most controversial individuals in the world. The book describes the complex situations and challenges of managing such a unique hospital in an environment of "shifting sands". It provides a keen insight into the business and social culture of Saudi Arabia, its people, and the Middle East in general. It describes the many natural wonders of this mysterious and magnificent vast peninsula and some of its history. It allows one to see clearly the extremes between the life styles of the simple Bedouins and the ostentation of the privileged few. Most intriguing is the vivid description of what can happen when an influential Saudi family falls out of favour with the "powers that be" and how swiftly strategic collaboration can turn into reverse privatization and the aftermaths of such. It clearly demonstrates that mirages are not necessarily limited to the deserts of Saudi Arabia when the Monarchy flexes its muscles.
About the Author
Gordon Utgard has some thirty years of experience in the health care industry, nine being in International markets. He has served in the CEO capacity at five hospitals and one health plan. He created a proprietorship business in early 1997 to support the Blue Cross and Blue Shield Association's development of a worldwide hospital network. This business, Utgard Associates, was also the entity that contracted with the Al-Salama Hospital in Jeddah, Saudi Arabia, to provide the hospital's CEO, which this book is about. Gordon holds a BA degree in Economics/Finance from Baylor University, where he was a three-year football letterman and team captain, and has a Masters of Health Care Administration from Trinity University in San Antonio, Texas. He is a fellow in the American College of Health Care Executives and is a Lead Faculty Member in the School of Graduate and Professional Studies at LeTourneau University In Dallas, Texas. Gordon served as a director on several boards and has presented at several domestic and international seminars. He is currently serving as the Master Facility Plan Project Executive at Memorial Health Care System, Chattanooga, TN. Gordon is married and has one son and one daughter.