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Becker's Hospital Review CFO E-Weekly Report SPECIAL LISTS ISSUE: 25 Largest, Top Grossing Hospitals in America & More! INSIDE 300 Hospital and Health System Leaders p. 18 Hospital Review 100 Great BUSINESS & LEGAL ISSUES FOR HEALTH SYSTEM LEADERSHIP Community September/October 2012 • Vol. 2012 No. 7 Hospitals p. 20 How Can Has Healthcare Reform 5 Observations Hospitals Work With ASCs? Brought the End to on the State of Should ASCs be Part of Your Alignment Strategy? Learn more “Hospital Systems?” Hospital Credit at the 19th Annual Ambulatory Surgery Centers Conference p. 39 By Molly Gamble Markets How a Banker Many healthcare providers don’t want to be known as “hospital sys- By Bob Herman tems” anymore. Some hospitals and health systems are taking reform Turns Around a into their own hands by redefining their brand, mission and busi- The credit and debt markets have been Struggling System ness strategies to better reflect the contemporary broader values of markedly different since 2008, when the Q&A With Carlos Migoya, CEO healthcare reform. The phrase “hospital system” connotes a sense of United States and much of the world offi- of Jackson Health System p. 34 limitation and constraint in today’s healthcare environment, in which cially entered a financial crisis that impact- Adding Value to successful systems are expected to include surgery centers, physician ed the credit of almost every borrower. groups, home health agencies, rehabilitation facilities and sometimes Hospitals and other healthcare borrow- Healthcare by even health plans. Eliminating Waste ers are no strangers to the evolving credit Q&A With Virginia Mason Medical continued on page 9 markets. Everything from the Eurozone Center CEO Dr. Gary Kaplan p. 59 crisis to the Libor scandal to the con- tinuing, sluggish economy in the United INDEX States has had a direct or indirect impact 6 Trends in an Era of on hospitals, their investments and their Executive Briefing: ability to borrow. Healthcare Reform p. 13 Consumer-Driven Executive Briefing: Here are five observations on the current Community Hospitals p. 30 Healthcare state of the hospital credit markets. Hospital-Physician By Bob Spoerl Relationships & ACOs p. 47 1. Interest rates are historically Beginning with high-deductible health plans and cost sharing models, low, leading to a favorable mar- Executive Briefing: ket. The federal funds effective rate has Transactions & which started springing up around a decade ago, and continuing to the Valuation p. 52 creation of health insurance exchanges — written into the Patient Pro- held around 0.16 percent in the past sev- tection and Affordable Care Act — consumerism has been on a steady eral months — a historically low interest Finance & Revenue rate for general borrowing, as the federal Cycle p. 55 rise in the healthcare industry. government continues to try to stimulate Legal & Regulatory. p. 61 More and more hospitals and physicians are taking note and tweaking the economy. Executive Briefing: the way they provide care to appease these better informed patients. Healthcare Reform & Perioperative Services p. 64 continued on page 10 continued on page 55 REGISTER TODAY! Becker’s Hospital Review CEO Strategy Roundtable Nov. 1, 2012, 4-6 p.m., Dinner and reception to follow Ritz Carlton, Chicago Come listen to 12 panelists discuss their biggest concerns and how they are addressing them. Limited to 100 Attendees. To register or for sponsorship options, please call Jessica Cole at (800) 417-2035 or visit www.beckershospitalreview.com/novhospitalevent.html How do you want to move forward today? Explore new frontiers in clinical, operational and financial performance. To successfully improve hospital performance, you need help navigating the complex environment and managing an ever-increasing amount of data. VHA IMPERATIV™ is a unique performance management solution featuring highly skilled clinical and operational experts that work with you to interpret your data, counsel you through complex decisions and develop a performance improvement plan. You’ll also access our easy-to-use analytics dashboard, the industry’s only Leading Practice Blueprint® library, and collaborative networking. So wherever you are in your performance journey, you don’t have to go it alone. Move forward with VHA IMPERATIV and navigate your way to peak clinical and operational performance. For a free preview of your organization’s performance data and improvement opportunities, visit www.vha.com/VHAIMPERATIV or call 800.842.5146. Cost Reduction | Margin Improvement | Quality Improvement How do you want to move forward today? Explore new frontiers in clinical, operational and financial performance. To successfully improve hospital performance, you need help navigating the complex environment and managing an ever-increasing amount of data. VHA IMPERATIV™ is a unique performance management solution featuring Today, Sandlot Solutions is providing the foundation supporting the management of care for millions of patients and has highly skilled clinical and operational experts that work with you to interpret delivered a multi-million dollar ROI for those using this innovative health care technology platform. Sandlot Solutions your data, counsel you through complex decisions and develop a performance offers proven, advanced technology for more informed clinical decisions and improved patient outcomes by combining improvement plan. You’ll also access our easy-to-use analytics dashboard, the our Next Generation Health Information Exchange (HIE) with a Data and Analytics Toolset. industry’s only Leading Practice Blueprint® library, and collaborative networking. So wherever you are in your performance journey, you don’t have to go it alone. Developed by practicing physicians, Comprehensive analytics and Streamlines the physicians’ daily Move forward with VHA IMPERATIV and navigate your way to peak clinical and the system displays patient records reporting, provides decision operating processes, no interruption operational performance. the way physicians want to see them. support tools at the point of care. to the patient workflow. For a free preview of your organization’s performance data and improvement opportunities, visit www.vha.com/VHAIMPERATIV or call 800.842.5146. Sandlot Solutions, transforming the way you operate by providing the right information, at the right time, in the right format. Find out more. For a demo of Sandlot Solutions, call (800) 370-1393. Cost Reduction | Margin Improvement | Quality Improvement Or, visit us online at sandlotsolutions.com. ©2012 Sandlot Solutions, Inc. All rights reserved. Becker’s Hospital Review Annual Chief Executive Officer Strategy Roundtable November 1st • Chicago • Ritz Carlton The panelists include: Larry Anderson, Chief Dave Brooks, Chief Executive Teri Fontenot, President Larry Goldberg, President and Executive Officer, Tri-City Officer, Providence Regional and Chief Executive Officer, Chief Executive Officer, Loyola Medical Center Medical Center Everett Women’s Hospital University Health System Steve Goldstein, President Dean Harrison, President and Bill Leaver, President and Barbara Martin, President and Chief Executive Officer, Chief Executive Officer, North- Chief Executive Officer, and Chief Executive Officer, Strong Memorial Hospital western Memorial HealthCare Iowa Health System Vista Health Charlie Martin, Chief Megan Perry, President, Jim Skogsbergh, President Quint Studer, Consultant and Executive Officer, Vanguard Sentara Potomac Hospital and Chief Executive Officer, Founder, Studer Group Health Systems Advocate Health Care This event is Thank you to our sponsors: moderated by Chuck Lauer and Scott Becker. Chuck Lauer, author and former publisher, Modern Healthcare REGISTER today! Limited to 100 Attendees. To register or for sponsorship options, please call Jessica Cole at (800) 417-2035 or visit http://www.beckershospitalreview.com/novhospitalevent.html Precise performance. For hospitals, it begins with measurement. From the moment you partner with Sheridan, we meticulously seek out ways to help you achieve tangible results. anesthesiology emergency By using performance-drivenanesthesiology metrics, weemergency connect clinical excellence and accountability to patient satisfaction. anesthesiologyanesthesiologyradiologyemergency emergencyneonatology ANESTHESIOLOGY RADIOLOGY radiologyEMERGENCY NEONATOLOGYneonatology 855-225-4083 • www.sheridanhealthcare.com radiology radiology neonatologyneonatology 6 Sign up for the COMPLIMENTARY Becker’s Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 Hospital Review BUSINESS & LEGAL ISSUES FOR HEALTH SYSTEM LEADERSHIP September/October 2012 Vol. 2012 No. 7 www.BeckersHospitalReview.com Editorial FEATURES Lindsey Dunn Editor in Chief 7 Publisher’s Letter 800-417-2035 / [email protected] Laura Miller Executive Briefing: Healthcare Reform Editor in Chief, Becker’s Orthopedic, Spine and Pain Review 800-417-2035 / [email protected] 13 10 Considerations for Hospitals in the Aftermath of Supreme Court’s PPACA Decision Rachel Fields 18 300 Hospital and Health System Leaders to Know Editor in Chief, Becker’s ASC Review 800-417-2035 / [email protected] 20 100 Great Community Hospitals Molly Gamble Executive Briefing: Community Hospitals Associate Editor 800-417-2035 / [email protected] 30 Protecting and Preserving the Community Hospital — Immediate Actions for Future Bob Herman Success Associate Editor 800-417-2035 / [email protected] 33 What the
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