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The Benefits of System Affiliation for Independent Rural Hospitals

The Benefits of System Affiliation for Independent Rural Hospitals. Presented by: . Donna Russell-Cook, FACHE President St. Elizabeth Hospital Franciscan Health System. Sue Reiter, RN, BSN Board Member Franciscan Health System. St. Elizabeth Hospital Franciscan Health System

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The Benefits of System Affiliation for Independent Rural Hospitals

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  1. The Benefits of System Affiliationfor Independent Rural Hospitals Presented by: Donna Russell-Cook, FACHE President St. Elizabeth Hospital Franciscan Health System Sue Reiter, RN, BSN Board Member Franciscan Health System

  2. St. Elizabeth Hospital Franciscan Health System Affiliation—May 2007 Enumclaw, WA

  3. St. Elizabeth Hospital Service Area (Southeast King and Northeast Pierce Counties) • Population of 36,000 • Medicare/Medicaid payer mix is 58.1% • 40,000 annual outpatient visits • 75% of primary care providers are FMG • 13,300 ER visits • 300 births • 1,500 admissions • 16 – average daily census

  4. Many are doing it…does it make sense for YOURorganization? Number of Hospitals in Health Systems,(1) 2002 – 2012 • Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2012, for community hospitals. • Hospitals that are part of a corporate body that may own and/or manage health provider facilities or health-related subsidiaries • as well as non-health-related facilities including freestanding and/or subsidiary corporations. What synergies exist with potential partners?

  5. Prior to Affiliation After Affiliation ACCESS TO CAPITAL Enumclaw Regional Hospital St. Elizabeth Hospital FACILITIES Updates, expansion, and new construction

  6. ACCESS TO CAPITAL INFORMATION TECHNOLOGY Implementation/advancement of EHR, new equipment OUR EHR JOURNEY MEANINGFUL USE STAGE 2

  7. FINANCIAL VIABILITY ECONOMIES OF SCALE Affiliation Supplies as a % of revenues decreased from 7.3% pre-affiliation to 2.8% post-affiliation despite increase in total patient services revenue of over 200% during same period NEGOTIATING POWER One contract was non-negotiable for the past 20 years, upon affiliation, it was renegotiated, bringing Enumclaw into FHS payer agreements SYSTEM CHARGE MASTER Increased Charges = Increased Revenue It’s critical to monitor not just the impact on the organization, but also on the patient and community KNOW YOUR COMMUNITY

  8. ACCESS TO HUMAN RESOURCES AND SYSTEM PROGRAMS • End of Health Services Consortium (90’s) • Virginia Mason was providing advice/assistance during that time • No connection to larger resource (early 2000’s) • Led to affiliation talks with Franciscan Health System • Great platform for guidance and structure • Integration of system policies for admin, clinical, and HR • Shift from “home grown” practices to best practices • Access to talent, expertise, structure, procedures, and practices

  9. COMMUNITYRELEVANCE • Immediate assurance of ongoing existence of hospital • Community • Employees • Community Relations • Health Care Coalition • Shifting perception (positive) with increased involvement • System (FHS) and parent (CHI) financial support • Marketing • Grants/Sponsorships • FHS Foundation • Volunteer Services/Community Integration FTE’s ADMISSIONS 43% BIRTHS 38% ER VISITS 13%

  10. PERMANENT HEALTHCARE FOR COMMUNITY CONTINUUM OF CARE EVOLUTION The new facility is symbolic of the greater benefit of the organization supporting the increased resources for community and patients GROWTH POPULATION HEALTH

  11. PROFESSIONAL RESOURCES “It can get a bit lonely out in the country.” -Dennis Popp, Administrator, Enumclaw Regional Hospital Additional STAFF MANAGERS Now able to interact with… DIRECTORS SENIOR LEADERS

  12. MEDICAL STAFF CONNECTION “ Recruiting and retaining talented physicians, providers, nurses, ancillary professionals, and other positions is the single biggest challenge in ensuring a competent and quality delivery service in a rural community.” -James Diegel, president and CEO, St. Charles Health System Inc., Bend, OR Pre-affiliation >50% of referrals were from FMG

  13. VISIBILITY AND PRESTIGE CATHOLIC HEALTH INITIATIVES 18 – States 86 – Hospitals 2 – Academic Med. Ctrs. 3rd Largest Faith-Based Health System 85,500 Employees $12B in Revenue National Network FRANCISCAN HEALTH SYSTEM 8 – Hospital System Franciscan Medical Group Hospice/Palliative Care 12,440 Employees Regional Network ST. ELIZABETH HOSPITAL 1- CAH Hospital 282* Employees Local Community

  14. Thank You

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