Jordan Shields presented “Regional Strategies and Affiliation Considerations for Community Hospitals” at Becker’s Hospital Review’s 4th Annual CEO Roundtable in Chicago, IL. Jordan was joined on the panel by Bill Sexton, CEO of Crossing Rivers Health, and Michael Williams, President and CEO of Community Hospital Corporation. The discussion was moderated by Geoffrey Cockrell, Partner at McGuireWoods.
The panel covered the following topics:
> Changing transaction objectives: While many partnerships in the early 2000s were driven by financial considerations and basic survival, there has been a noted uptick in financially and operationally strong hospitals pursuing transactions as the best way to efficiently deliver high-quality care to their communities.
> Reimbursement implications: The panel agreed that population health and a shift away from fee-for-service reimbursement are resulting in declining inpatient admissions. The trend towards home hospitalization, ambulatory care, shortened length of stay and fewer re-admissions is expected to continue with significant implications for hospitals with high fixed costs tied to inpatient admissions.
> Industry direction: While the panel expects different markets to mature at different rates, panelists were uniform in their view that consolidation will continue as more hospitals find that the financial and non-financial costs of independence are outweighed by the tangible benefits that can be realized through a partnership.
The Becker’s CEO Roundtable gathers hospital leaders and industry experts from around the country to discuss current trends in strategy, leadership, finance, healthcare IT, ACOs, physician alignment and Healthcare Reform.
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