Do we know Collaboration and Cooperation??
Mergers are happening in all areas of business, but they are fairly common in Healthcare.
Recently , St. Mary Mercy Hospital in Livonia, Mich., announced it will merge its books and governance into St. Joseph Mercy Health System which is a three-hospital system based in Ann Arbor, Mich.
Both of these entities are already owned by Trinity Health which owns and manages 43 hospitals in seven states.
This particular merger isn’t a traditional asset merger as seen in other markets, but one in which it provides each respective organizations the opportunity to support their communities through collaboration rather than through competition.
Collaboration and cooperation are wonderful words that could help our hospitals locally.
Now that we have selected a new CEO, collaboration and cooperation with Clark Memorial Hospital could go a long way in providing better care to each of our counties. The cost savings in sharing services and/or employees in certain key areas could help the bottom lines of each organization.
The merger in Michigan will keep the St. Joseph Mercy name, will have a single operating budget, and its governance will be reconstituted to include board members from both hospitals. The executive team of each will remain intact for both hospitals.
Both of these Michigan hospitals are facing increasing competition from Detroit much like we do from Louisville. The enhanced cooperation should give both hospitals some economy of scales for competing.
Do you think our political leaders and others with the power to consider a potential arrangement to cooperate and collaborate will do so?
Recently , St. Mary Mercy Hospital in Livonia, Mich., announced it will merge its books and governance into St. Joseph Mercy Health System which is a three-hospital system based in Ann Arbor, Mich.
Both of these entities are already owned by Trinity Health which owns and manages 43 hospitals in seven states.
This particular merger isn’t a traditional asset merger as seen in other markets, but one in which it provides each respective organizations the opportunity to support their communities through collaboration rather than through competition.
Collaboration and cooperation are wonderful words that could help our hospitals locally.
Now that we have selected a new CEO, collaboration and cooperation with Clark Memorial Hospital could go a long way in providing better care to each of our counties. The cost savings in sharing services and/or employees in certain key areas could help the bottom lines of each organization.
The merger in Michigan will keep the St. Joseph Mercy name, will have a single operating budget, and its governance will be reconstituted to include board members from both hospitals. The executive team of each will remain intact for both hospitals.
Both of these Michigan hospitals are facing increasing competition from Detroit much like we do from Louisville. The enhanced cooperation should give both hospitals some economy of scales for competing.
Do you think our political leaders and others with the power to consider a potential arrangement to cooperate and collaborate will do so?
posted by Anonymous at 6:15 AM
4 Comments:
Interesting concept, indeed.
On a much smaller scale the cooperation and collaboration between the Family Health Center of Clark, Floyd, and Harrison county secures valuable services to the clients of all three sites, and as you stated we have the ability to "share" employees, and provides a strong foundation for continuity of operation should the be any type of disruption at any of the 4 sites between the 3 non-profit companies.
I might be wrong but isn't Clark Hospital already affilated with Jewish Hospital? If that being the case why would they want to collaborate with their competition.
Jewish is well known for their heart center. I'm not sure if anything connected with health-care these days should be considered non-profit companies.
Clark is affiliated with Jewish in that Jewish now manages Clark. That being said....Jewish is not the same Jewish it was under Hank Wagner's leadership.
Floyd, Clark, and Jewish are already affiliated in that they all three own the Southern Indiana Rehab Hospital...with Frazier managing it...which means that Jewish has more control than Floyd because Jewish manages both Clark and Frazier. Floyd came up short on that deal with just 1/3 ownership and control. When it was first established, Jewish was sly in that they offered the opportunity for FMH to be part owner of the new hospital. Floyd was not interested because they would have been in the minority, but they were forced into the deal because without it, they would have lost all Rehab industry for Southern Indiana to Jewish. Jewish was very, very smart because the initial investment was shared by Floyd with Floyd having only a minority control in the investment. The unfortunate thing is the opportunity for a Rehab Hospital was presented first to Floyd, but Floyd declined. That left the door open for Jewish to walk through and take it.
However, if Floyd and Clark unite as one institution, there might not be a need for Clark to have Jewish manage it. We would need a strong leadership to pull this off. Wonder if the new CEO at Floyd is capable of that challenge.
This is not the first time someone has suggested one institution for both counties. It has been suggested that one new hospital be built on the county line and eliminate both of the existing structures. But politics being as they are, does anyone really think the county commissioners of either county will forfeit their power and allow one institution to exist to serve both counties?
All of what has been said is accurate but it should be emphasized that the current CEO at Floyd was the one who had the opportunity to own the rehab hospital solely by Floyd and turned it down.
Another one of his blunders that he never was held accountable for
Good riddens to him
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