Situation
Two hospitals have the opportunity to merge in the same community not challenged by FTC due to the statewide definition of “market.”
Background
A two-hospital community has a large (500+ beds) Catholic hospital on brink of financial failure.
After a thorough process, a transaction is completed whereby the merged “campus” remains Catholic and is fully integrated to create one of the largest hospitals in the country at 1544 beds.
Execution
• One hospital/one provider number” build process created complete integration and full synergies associated with best practices taken from each partner.
• Service rationalization on two campuses created centers of excellence and reduced duplication of services and ancillary support technology. Cancer care, children’s services, cardiac surgery, musculoskeletal care and low intensity childbirth became centralized on one campus.
• EPIC electronic record was also implemented, allowing the merged entity to create one fully integrated electronic medical record for inpatient and ambulatory care.
• Many unique techniques of integration planning were employed to engage management and medical staff in the vision and execution of a “new” hospital that embraces a culture respectful of its origins.
Platform to grow clinical services, e.g. neurosicences and musculoskeletal.
Results
A new enterprise was successfully launched, with savings to the healthcare system in excess of $70 million per year with long-term sustainability and better integrated care throughout the community.
The history and heritage of a 100-year old institution has been preserved in a merger where all staff jobs are preserved (for employees in good standing).