A search is under way to replace Larry Heinike as UPMC Horizon's chief executive officer when he moves to Pittsburgh to assume permanently his role as senior vice president of the University of Pittsburgh Medical Center's hospital division.

Horizon's board has created a search committee to find a new CEO by about March 1, Heinike said Monday.

In addition to serving as Horizon's CEO, for more than a year the 61-year-old has also been overseeing UPMC's 17 hospital systems.

Heinike's tenure at Horizon's hospitals in Greenville and Farrell has been marked by ups and downs, but he said he is leaving on a high note.

"I have a pretty significant sense of peace this organization is as well positioned for the future as it can be,'' he said. "Its relationship with UPMC is strong.''

Heinike came to Mercer County after serving as CEO of Titusville Hospital. Arriving in 1981 at what was known as Shenango Valley Osteopathic Hospital, he saw the Farrell hospital through its name change to Shenango Valley Medical Center and is credited for shepherding its merger in 1992 with Greenville Regional Hospital to form Horizon Hospital System.

After surviving a board movement to oust him in the mid-1990s, Heinike crafted the September 1998 merger deal of Horizon with UPMC. At the time, the deal stirred controversy among some staff and residents who worried that although Horizon was gaining a highly profitable owner, it might lose its independence.

Since joining the fold of the Pittsburgh-based health provider, Horizon has received nearly $20 million from UPMC for capital projects and physician development.

"There's no question that's an excellent move,'' Heinike said of the merger, noting Horizon now has low debt, a growing medical staff and improved facilities.

He pointed to Horizon's recently improved Standard and Poor's bond rating from BBB to A-minus as a key way of measuring its success.

He also said Horizon posted a $3 million operating loss in fiscal 1999 but showed a $2.7 million profit in 2000 and $2.1 million in 2001. For the first six months of the current fiscal year Horizon has a $1 million profit, which is higher than expectations, Heinike said.

"The institution is doing exceptionally well,'' Heinike said, adding it will continue to grow.

Horizon is looking at creating a local oncology center through the University of Pittsburgh Cancer Institute, which is affiliated with UPMC. The new facility -- set to open in 2004 -- would replace the Life Care Canter Center near Stoneboro, a joint venture between Horizon and United Community Hospital, Pine Township.

Heinike declined to say if the new center would be located in the Shenango Valley but said it would be a free-standing building.

Since joining UPMC, Horizon has thrived both financially and in quality, he said. It has consistently ranked first or second in patient satisfaction and rehabilitation among UPMC's 17 hospital systems.

"They're truly a class act,'' Heinike said. "The medical research there is already in the top echelon in the United States. It doesn't get any better than that.''