AHS Secretary Doug Racine steps down, Health Commissioner Harry Chen takes over as interim

Vermont Business Magazine One of the hallmarks of the Shumlin Administration has been its consistency of leadership. With rare exception the major posts have been occupied by the same people who were there at the governor's first swearing in ceremony. But that has now changed. Governor Peter Shumlin Tuesday announced that Doug Racine will be stepping down as Secretary of the Agency of Human Services. Racine later confirmed he was fired Monday. Harry Chen, a physician and current Commissioner of the Department of Health, has stepped in as Interim Secretary while a search for a permanent replacement is conducted.

Doug Racine, in doorway, listens as Governor Shumlin delivers his budget address last January. Jeb Spaulding sits in the lower left next to Liz Miller. They told Racine Monday that he was being let go. photo by VBM

“I appreciate Doug’s hard work over three and a half years to help Vermont’s most vulnerable,” said the governor. He noted that under Racine’s tenure, the agency moved to a data-driven, results-based planning strategy, revamped the troubled mental health system in the wake of the closure of the State Hospital following Tropical Storm Irene, and teed up the conversation regarding lessons learned from recent tragedies and how best to protect Vermont’s most vulnerable children and families."

In a story running in Wednesday's Burlington Free Press, reporter Terri Hallenbeck quoted Racine as saying that he was called into the governor's office by Chief of Staff Liz Miller and Administration Secretary Jeb Spaulding Monday: "The told me it was time for a change. I said, 'Who are you changing?' And they said me. I didn't really seeing it coming."

Racine told the Free Press that they wanted someone with a more "outward-focused" style. Racine is known for his quiet demeanor. Racine said the problems with theDepartment for Children and Families was not mentioned, nor was he blamed for the troubles involved with Vermont Health Connect, which, technically under AHS, was ostensibly run out of the governor's office.

Shumlin did not attend the Monday meeting, but called Racine later in what was described as a "cordial" conversation.

AHS took a significant hit in budget cuts announced Monday, with nearly $10 million coming out of the current FY 2014 budget from the Global Commitment Fund and another $3.8 million coming out of the Department for Children and Families.

SEE STORY: Shumlin Administration unveils $31 million in spending adjustments

Harry Chen photo courtesy of governor's office.

“This has been a tough job, but now is the right time to start with new leadership to take the Agency of Human Services forward,” Shumlin said. “I appreciate Dr Chen’s willingness to get us started on that challenge.”

“With a strong AHS team to support him, Harry is the perfect choice to lead the changes needed to strengthen the Agency and its commitment to keep Vermonters healthy and safe,” the governor said.

Before becoming Health Commissioner at the start of the Shumlin Administration in January 2011, Chen was an emergency physician at Rutland Regional Medical Center for over twenty years and served as Medical Director for several years. He earned his medical degree at the Oregon Health Sciences University School of Medicine, serving as Chief Resident. From 2002-2008, Dr Chen served in the Vermont House of Representatives; during his final term he was Vice Chair of the Health Care Committee. Dr Chen has spoken on the issue of health care reform and opiate addiction nationally and regionally, including presentations to the US Senate Health, Education, Labor and Pension Committee and the New England Medical Society Leadership Conference.

Chen is expected to remain as Interim Secretary of AHS through the end of the year. In his absence, Deputy Commissioner of Health Tracy Dolan will head that department.

On the campaign trail at the Addison County Fair and Field Days WCAX-VBM-WDEV debate in August 2010: from left, Peter Shumlin, Matt Dunne, Doug Racine, Susan Bartlett and Deb Markowitz. Vermont Business Magazine file photo.

Racine lost a bitter primary race for governor to Shumlin in 2010 by 203 votes, which required a recount to confirm. Also in that race were future Shumlin Administration officials Deb Markowitz and Susan Bartlett. Shumlin then went on to win another close race against Republican Brian Dubie, incumbent Governor Jim Douglas' lieutenant governor.

Notable previous departures from the Shumlin team were Alexandra MacLean, his former campaign manager and executive staffer, who now works on the Northest Kingdom development projects for Jay Peak Resort, and Shumlin's first chief of staff, Bill Lofy, who moved to the Democratic Governors Association. Also, Steve Kimbell retired, after coming out of retirement to serve as Commissioner of the Department of Financial Regulation, and Patrick Flood, Mental Health Commissioner, left after Shumlin's first term. Other pieces have moved around. For instance, Lawrence Miller was the Development Secretary and is now the chief of health care reform. His post was taken over by his former deputy, Pat Moulton, who briefly left the administration before coming back in June.

RELATED:Human Services Secretary Doug Racine shakes up DCF Rutland office

Source: Governor's office, 8.12.2014