How three hospital partnerships in different regions of the country allow local healthcare organizations to retain their identities.
Driven by economic conditions and healthcare reform, hospitals continue to join forces in an effort to save costs and boost patient volume. These partnerships can be greatly beneficial, especially for smaller hospitals that get to hitch their wagon to a big-name organization (and the marketing clout that goes with it).
But partnerships and mergers can cause conflict, too, particularly when two formerly competing organizations team up. Here's a look at how three hospital partnerships are playing out.
Brooks Memorial Hospital + UPMC Hamot
At Brooks Memorial Hospital in Dunkirk, NY, officials mourn the good old days when patients endured long hospital stays for chronic conditions that are now more easily managed.
"I can't remember the last time I had an asthmatic in the hospital, and they used to be here all the time when I started," Anthony Bartholomew, MD, an internist and head of the hospital's medical staff, told the Buffalo News.
To Bartholomew's dismay, nearly two-thirds of the hospital's 65 beds are now empty, causing Brooks to hemorrhage money.
In an effort to turn things around, the hospital has teamed up with UPMC Hamot, a 412-bed University of Pittsburgh Medical Center affiliate located about 50 miles from Brooks.
Hospital officials are really hoping this one sticks, as the organization is coming off a failed merger with TLC Health Network forged in 2008. Now, because of outstanding loans Brooks owes TLC, the hospital is anticipating a $3.1 million deficit this year, causing it to determine how services will be affected.
"We need a reset here," J. Gary Rhodes, a UPMC executive who is Brooks' interim chief, told the Buffalo newspaper. "The survival of the hospital is not at stake, but it needs to be redefined."
Rhodes said he envisions Brooks keeping its emergency department and inpatient beds, while also increasing its maternity offerings. Beyond that, the hospital faces difficult decisions on what services will stay local. Leaders are also trying to brainstorm new offerings that may help Brooks' suffering volume, such as urgent care or wellness.
Medical University of South Carolina + Greenville Health System + McLeod Health + Palmetto Health + Self Regional
Five South Carolina hospitals are coming together to save costs, with hospital leaders citing the Patient Protection and Affordable Care Act as the catalyst behind the merger. The new organization, a limited liability company called Initiant Health Collaborative, will be governed by a Board of Managers and owned by its members, which will hold board meetings six times a year. Each hospital invested a required $25,000 in the merger.
Though each of the five hospitals will continue doing business separately and be run by its own board, the goal of the partnership is to reduce costs by increasing their purchasing power and their ability to make technological investments.
"We think there are ways to actually get together and still remain independent," Pat Cawley, MD, vice president for clinical operations for Medical University Hospital of South Carolina and CEO of the MUSC Medical Center, told a local newspaper.
"The bottom line is we're still competitors," Crowley told the hospital board during a committee meeting last week.
And therein lies the rub—five hospitals coming together to save money and improve their technology, while otherwise continuing to compete with one another.
Golisano Children's Hospital + Miami Children's Hospital
Two Florida children's hospitals recently formed a partnership to share physicians and cut down on administrative overhead. Golisano Children's Hospital in Fort Myers hopes to improve patient care by cutting out pre-departure paperwork to reduce air transport times to Miami Children's Hospital, and possibly eliminate the need for some transfers altogether by sharing electronic medical records.
"Why do we have to necessarily bring all these families to Miami?" Armando Llechu, Miami Children's vice president of clinical operations, told a local news outlet. "Maybe those children don't have to come to Miami or go anywhere else and can be treated here at Golisano."
Though Golisano patients will not be billed for long-distance consults with Miami Children's docs, both organizations stand to benefit from the partnership—Miami may receive more patient referrals and Golisano will gain access to the rare pediatric specialists that the Fort Myers hospital does not have in-house.
"We don't really have the population to support those subspecialties," said Golisano Administrator Kathy Bridge-Liles. "There are very few resources, very few children's hospital specialties, and we all really need to work together."
From a marketing standpoint, Golisano may benefit the most from aligning itself with the strong reputation of Miami Children's. The same is true for Brooks Memorial and its affiliation with a larger UMPC hospital.
None of these partnerships are trumpeted on billboards, yet all three have an impact on reputation. They have been discussed in largely approving tones by local media, which are aware of the financial risks to community hospitals. In each case, the partnerships allow local healthcare organization to continue to operate independently. In the end, that's the biggest boon of all.
Marianne Aiello is a contributing writer at HealthLeaders Media.