Increases in Worry Over Health Care Costs and Skipping/ Postponing Treatment Due to Cost Over the Last Year |
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Author Archives: henrykotula
Steward moves to sell struggling Pennsylvania hospital
Dallas-based Steward Health Care has signed a letter of intent to sell Easton (Pa.) Hospital to a local healthcare system, a source familiar with the agreement told The Morning Call.
The document reviewed by the publication suggest that St. Luke’s University Health Network is the likely buyer. Both Steward and St. Luke’s declined to comment.
Last month, Bethlehem, Pa.-based St. Luke’s University Health Network and Allentown, Pa.-based Lehigh Valley Health Network, submitted bids to buy Easton Hospital.
The takeover bids came after Steward said it would cut services to improve the system’s finances.
Easton Hospital has struggled to compete with both St. Luke’s and Lehigh Valley Health for the last five years, according to the report.
On Feb. 12, Steward sent a warning letter to the Lehigh Valley Health to stop recruiting physicians from Easton Hospital, saying they are contractually banned from working at a competing system. This suggests that St. Luke’s bid may have been approved over Lehigh Valley Health, according to the report.
Read the full report here.
The role of the modern Hospital & Health System CFO: 3 things to know
The role of hospital and health system CFO has changed in recent years. CFOs are now change agents within their organizations and are deeply embedded in the day-to-day operations of the business.
Speaking on a panel called “The Evolving Role of the CFO” at the Becker’s Hospital Review 8th Annual CEO + CFO Roundtable in November, a panel of health system CFOs and finance leaders from across the country discussed how the finance chief role has changed and expanded.
The five panelists were:
- Jeanette Wojtalewicz, senior vice president of Omaha, Neb.-based CHI Health
- Nicholas Mendyka, vice president of system finance operations at Minneapolis-based Allina Health
- Doug Welday, CFO of Evanston, Ill.-based NorthShore University HealthSystem
- Kris Zimmer, CFO of St. Louis-based SSM Health
- Mike Browning, CFO of Columbus-based OhioHealth
Here are three takeaways from the discussion:
1. CFOs are strategic leaders. The panelists noted that younger CFOs — those in their early 30s — come to the role with a fresh viewpoint. They are strategic and drive performance across the organization. Though CFOs who have been in the role for a decade or two may have a more traditional viewpoint, they’re adapting to the role of the modern CFO and embracing their more strategic position.
2. CFOs need different skills than in the past. The CFO role has expanded beyond traditional finance and accounting, and the skills CFOs need have changed too. When recruiting new members to their teams, the CFOs on the panel said they look for candidates with natural curiosity, data visualization skills and natural leadership abilities.
3. Clinician-finance partnerships are important. New payment models link quality of care to reimbursement, making it vital for CFOs and their teams to develop an understanding of the clinical side of the business. This has caused some health system CFOs to change their approach to training. The panelists said they try to help their teams develop an understanding of each department and learn how clinical and finance are connected.
Ochsner to pay tuition for future physicians, nurses who pledge to 5 years with system
New Orleans-based Ochsner Health System created a $10 million tuition fund to grow its own workforce amid current labor market challenges, according to The Advocate, a Louisiana news outlet.
The system will begin by paying tuition for a cohort of 30 primary care physicians and psychiatrists. The physicians must commit to working in Louisiana with the health system for at least five years to receive the funding.
Ochsner has plans to offer similar scholarship opportunities for employees who want to become licensed practical nurses or registered nurses. It plans to ultimately cover tuition for about 1,000 employees, according to the report.
Read the full story here.
Trinity Health to end inpatient services at Philadelphia hospital
Livonia, Mich.-based Trinity Health is shutting down inpatient services at Mercy Philadelphia Hospital in Philadelphia.
“After careful consideration, we have come to the financial realization that our Mercy Philadelphia campus simply cannot continue operating in an acute-care capacity over the long term,” a spokesperson for Trinity Health Mid-Atlantic said Feb. 12, according to The Philadelphia Inquirer.
Officials did not provide a specific timeline for the closure.
“In the coming months, we will begin the slow, deliberate and informed process of transforming our campus away from an inpatient hospital, shifting toward a model that can better and more sustainably serve the West Philadelphia community in the future,” the spokesperson said, according to The Philadelphia Inquirer. “While we do not yet have all the answers, we promise to keep our patients, physicians and colleagues informed throughout every step of this process.”
Mercy Philadelphia Hospital is a 157-bed teaching hospital that was founded in 1918.
Cartoon – Successful Business Turnaround
Cartoon – Importance of Data Analysis
Cartoon – Exacerbating the Unfairness
Cartoon – Promoting from Within
EHR giant Cerner loses major health system client AdventHealth to Epic
Florida-based AdventHealth plans to replace its Cerner electronic health record (EHR) system with rival Epic’s.
One of the largest faith-based health systems in the country, AdventHealth operates 50 hospital campuses across a dozen states. The health system employs more than 80,000 people who serve more than 5 million patients annually and reports nearly $20 billion in annual revenue.
The health system first signed a deal with Cerner in 2002 when it was known as Adventist Health System.
AdventHealth will begin the transition in March and will eventually roll Epic’s EHR out to 1,200 care sites. The work is expected to be completed in about three years, the health system said.
In a press release issued Tuesday, AdventHealth said it plans to install a single, integrated Epic EHR and revenue cycle management system across all of its acute care, physician practice, ambulatory, urgent care, home health and hospice facilities.
Epic’s Community Connect program will also allow AdventHealth to extend its EHR system to affiliated providers as part of the integrated platform, according to AdventHealth.
“Our journey to become a consumer-focused clinical company requires a fully connected network throughout our entire enterprise,” Terry Shaw, president and CEO for AdventHealth, said in a statement. “Connecting our network with a robust, integrated health record platform will give our caregivers access to the clinical information they need at the point of care and ultimately advance our consumer promises through a more seamless experience for those we serve.”
In an emailed statement, Cerner confirmed the changeover. “AdventHealth has made the business decision to transition over the next few years management of its EHR and revenue cycle management system to another supplier. The shift is expected to take up to five years and Cerner is committed to working closely with AdventHealth to continue delivering superior health care technology solutions throughout the transition,” the company said.
Anonymous Reddit posters predicted the change months ago, saying that the health system was frustrated with integration issues with Cerner’s ambulatory solution and revenue cycle functionalities. HIStalk first reported the Reddit posts regarding Cerner and AdventHealth.
One Reddit user said AdventHealth staff felt the health system was on the “back burner” since Cerner signed massive projects with the departments of Defense and Veterans Affairs.
It’s unclear what the loss of a big EHR client will mean for health IT company Cerner’s annual revenue or earnings.
The company continues efforts to turn its financial picture around and improve its operating performance.
Almost a year ago, activist investor Starboard Value stepped in, and Cerner reached a settlement with the hedge fund to add new directors to its board and buy back more of its shares. Cerner also agreed to take steps to improve operations and committed to hitting certain operating targets.
The new agreement between Cerner and Starboard Value, which has a 1.2% stake in the company, was seen as welcome news by many financial analysts as a plan to increase the company’s profitability.
Cerner’s full-year 2019 bookings were down 11% compared to 2018 bookings, from $6.72 billion to $5.99 billion. Company executives said during their full-year and fourth-quarter earnings call that the decline in bookings was primarily driven by the company being more selective in the types of contracts it pursues, which led to fewer large, long-term outsourcing contracts.
HENRY KOTULA 