Honoring Tom Racobaldo: Crothall CEO to Retire After Decades of Leadership
In 1979, Tom Racobaldo refinished hospital floors and cleaned patient rooms as a Crothall management trainee. Six months later, he received his first assignment: managing a 50-bed hospital with 10 employees in northeast Philadelphia.
Forty-six years later, Racobaldo will retire as Crothall’s chief executive officer. Well-known for his humility, Racobaldo will complete nearly a half-century in the business at the top of his game, having helped build a company that now supports more than 1,000 hospitals and has grown to approximately $2.2 billion in annual revenue.
Compass One Healthcare’s Chief Executive Officer, Bobby Kutteh, says Racobaldo’s steady
demeanor and determination to grow the business have built a unique culture while achieving exceptional financial results. “Tom had done it all,” says Kutteh. “He’s walked in the shoes of our operators, starting as a night supervisor. He’s also developed our current leaders into a strong team that will shape our future. His consistency, capabilities, and character have set the standard for leadership in our company.”
Racobaldo shared with us his key insights on a variety of topics, ranging from his own humble beginning, lessons he has learned along the way, advice for young employees starting, and keys to how the company grew its business:
The Early Years.
Racobaldo’s road to success was temporarily waylaid a few years into his career. After working for the company for several years, he moved to the West Coast to take a sales position. However, the company was sold twice and underwent several changes, leaving him concerned about its future.
Fortunately, Graeme Crothall, the founder of Crothall, decided to start a new Crothall company in 1991. He called Racobaldo in 1993 and asked him to move back to the East Coast to become a Senior Regional Director of Operations. While the new Crothall was significantly smaller than its competitors, it enabled Racobaldo to assume a pivotal leadership role that was crucial to his career.
“As a start-up company, you do everything. I was writing policies and procedures, proposals for new business, and making new business presentations. And I was on the road just building the business because when the company is small, every account is so precious. It was a lot of hard work, and I thrived, but it was probably the toughest part of my career,” said Racobaldo.
Much like today, the new Crothall succeeded by differentiating itself from its competitors.
Keys to Crothall’s Success.
While other service providers may lump all hospital support services under one management team, Racobaldo says Crothall succeeds because it’s a separate unit of Compass One Healthcare. By focusing all its resources on a separate line of service, Crothall has outperformed its competitors.
“There’s just no question we deliver far better results in our support service divisions than our competitors. It’s the specialization piece, having our resources focused on each service line, and it’s the quality of people we’re able to attract.”
He says the Compass One Healthcare business model also gives Crothall an edge in operational leadership. “Our leaders have grown up in the business, and they know it inside and out. I have eight division presidents who, on average, have probably 20 years of experience. To me, there’s no better formula for success.”
People First Management Style.
Mike Villani, newly appointed Crothall CEO, says Racobaldo’s “people first” approach will have a significant impact on his own leadership style.
Racobaldo believes that successful managers must strike a balance between compassion for their people and identifying the right moments to help them improve. He believes in treating everyone with respect, regardless of their title.
Advice for Young Managers.
Racobaldo understands that in-unit managers are often under tremendous stress, and he refers to the operations manager position as “the toughest job in the business.”
“They are the front line of leadership who manage the workers. But they get directives and complaints from everywhere: from their supervisors, from Nursing and other clients, and they also need to train and supervise their people.”
He says the job amounts to boot camp for anyone taking on that role.
For those who want to advance, he says it’s crucial to ensure you are clear with your boss about your career aspirations.
“Don’t just assume they know you want to do more. The fact that some people like what they do, and they don’t want to do more. Most people coming into leadership want to do more. My advice is to communicate effectively and take ownership of your career. Don’t leave it up to somebody else to decide.”
What He Will Miss Most About Crothall.
“First, the camaraderie. I enjoy developing people and just interacting with really good people. I’ll also miss the competition. I think most people who are good at business have a competitive streak in them.”
“I’ll also miss the culture that Bobby created. Before Bobby became CEO, we were a company focused on tasks and meeting objectives, and there wasn’t much emphasis on the people. And Bobby turned that around 180 degrees. He made people realize there can be balance in your life.”
His Legacy.
“People ask, what’s your legacy? My answer is, I’m proud of what we’ve accomplished, but I’m also pleased that the company has planned well for its future.
“We have a whole new team of senior leaders, and they’ve got a long runway. The most important thing to me is knowing this company continues to thrive with new leadership. Then, I’ll know I’ve really done my job.”
Crothall Healthcare and all of us at Compass One Healthcare extend our gratitude to Tom Racobaldo for his many years of service and for helping shape the company we are proud to be today. Click here to read more messages of thanks.
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