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Analysis

Adventist HealthCare, Howard U. Hospital Form 'Partnership'

By John Commins  
   February 07, 2020

As part of the three-year management agreement, Adventist will bring in a senior management team led by CEO Anita L. A. Jenkins.

Adventist Healthcare will take over operations at the financially troubled Howard University Hospital in Washington, D.C., on February 17 under a management agreement signed by the two providers.

As part of the three-year "partnership," Adventist HealthCare will bring in a senior management team to the private, not-for-profit Howard University Hospital, led by new CEO Anita L. A. Jenkins, the former president of Sycamore Medical Center near Dayton, Ohio.

In addition, Adventist will work with Howard University to build a replacement hospital as part of the overall strategy to continue serving the community, the two providers said in a joint media release.

"We want Howard to continue to be a vital healthcare provider to meet the growing needs of the community, the region and the country now and in the future," said Adventist HealthCare President and CEO Terry Forde.

The affiliation will bring Howard University medical residents, medical students, pre-med students and graduates into the Adventist network for training. Howard University is the No. 1 producer of black applicants to U.S. medical schools.

"This is a historic day for Howard University because this union with Adventist HealthCare signifies a stronger foundation for building our academic programs and it enhances our ability to train the next generation of healthcare professionals," said Howard University President Wayne A. I. Frederick, MD, MBA.  

Washington, D.C., Mayor Muriel E. Bowser applauded the agreement, saying it "solidifies the rich tradition of providing high-quality health care services on Georgia Avenue and to the surrounding community."

"In addition, we can all be proud that the District of Columbia will remain home to the largest producer of African American doctors in the country — the Howard University College of Medicine," she said.

Last month, Moody's Investors Service gave Howard University's bond rating a negative outlook, after noting that "weak operating performance when combined with debt service coverage covenants continues to translate into limited bandwidth for revenueunder performance. About 90% of Howard University Hospital's patients are covered by either Medicare or Medicaid.

"Despite its important role in the district, the hospital is financially challenged by a myriad of issues including a high Medicaid population, tightening reimbursement, aging facilities, increasing market consolidation and intensifying competition, and past disruptions resulting from changes in hospital leadership,” Moody’s said.

Not-for-profit, Gaithersburg, Maryland-based Adventist HealthCare's footprint in Maryland and the Metropolitan D.C. region includes three acute-care hospitals, two rehab hospitals, a number of outpatient and mental health clinics, and physician practices, and employs 1,700 physicians.

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

Adventist will work with Howard University to build a replacement hospital as part of the overall strategy to continue serving the community.

The affiliation will bring Howard medical residents, medical students and graduates into the Adventist network for training.

Howard University is the No. 1 producer of black applicants to U.S. medical schools.

About 90% of Howard University Hospital's patient mix is covered by either Medicare or Medicaid.


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