University Health on Friday announced that George B. Hernández Jr., who has served as the health system’s president and CEO for 19 years, would retire in 2024.

Hernández, 71, spent 41 years at University Health, the public hospital district for Bexar County, according to a news release.

Bexar County Hospital District Board of Managers Chair James Adams called Hernandez “a transformational leader” in “his pursuit of building University Health into a nationally recognized health care organization that has never lost sight of its unique mission to serve and improve the health of our community.”

He said that Hernández’s “continuous efforts in strategic succession planning” means his retirement will not leave the hospital system in the lurch. The entire board of managers “would like to thank him for preparing us for a bright future.”

With the help of an executive search firm, the board will conduct a national search for Hernández’s successor.

Last week, University Health chose to max out the homestead exemption for property owners to 20% of a home’s taxable value, starting in 2024. Bexar County commissioners, who oversee the hospital system, voted unanimously Tuesday to approve the tax cut as part of University Health’s $3.1 billion operating budget.

Hernández told commissioners the system would lose roughly $54 million in revenue next year due to the increased exemption, but would be able to make some of that up via its partnership with pharmaceutical companies, which provides free medication to indigent patients.

University Health opened its $573.7 million Women’s & Children’s Hospital on Dec. 5 after flooding delayed its planned fall opening. Earlier this week, the health system broke ground on its Vida site on land it purchased across the street from Texas A&M-San Antonio, paid for by federal pandemic relief funds via Bexar County.

Hernandez is the highest-paid Bexar County official, with an annual salary of $826,000. He earned a performance incentive of $200,000 in 2022.

University Health employs roughly 10,000 people and operates two hospitals, University and Women’s & Children’s, said Leni Kirkman, executive vice president, chief marketing communications and corporate affairs officer. The health system plans to break ground on Palo Alto Hospital, on the same property as the Vida public health clinic, next month. It likely will break ground in February, Kirkman said, on University Health Retama, located on Interstate 35 north of Loop 1604.

The Lown Institute’s Hospital Social Responsibility Index for 2023 — a measure of hospital outcomes, value and equity — ranks University Health 16th out of 258 hospitals in Texas and 107th out of 3,637 hospitals in the U.S. University Health received a Leapfrog grade of A in fall 2023 for its quality and patient safety measures and outcomes.

“I have been very fortunate and blessed to have worked with all of my University Health colleagues, the members of the Bexar County Hospital District Board of Managers and Bexar County Commissioners Court during my tenure here,” said Hernández in the statement.

Hernández joined University Health in 1983 as its attorney; he was named vice president for legal services in 1990. He was promoted to executive vice president in 2000 and to president and CEO in 2005.

Prior to joining University Health, he served five years as an assistant city attorney for the City of San Antonio, and seven years as chief of the civil section of the Bexar County District Attorney’s Office. Hernández earned his bachelor of arts degree from St. Mary’s University in 1974 and his juris doctorate from George Washington University School of Law in 1977.

“I am extremely proud of how we have approached our work, all we have accomplished and how we have grown exponentially to meet the needs of our community,” Hernández said. “I also appreciate our UT Health San Antonio physician and community partners who have collaborated with us and worked diligently over the years to provide greater access to care and improve community health.”

University Health is a financial supporter of the San Antonio Report. For a full list of business members, click here.

Tracy Idell Hamilton worked as an editor and business reporter for the San Antonio Report from 2021 through 2024.