The acquisition, expected to close in the second quarter, would make myNEXUS a wholly owned subsidiary of Anthem.
Anthem, Inc. announced its intent to acquire myNEXUS, which manages home health benefits for payors, Wednesday morning.
The two organizations entered into an agreement which "aligns with Anthem’s strategy to manage integrated, whole person multi-site care and support, by providing national, large-scale expertise to manage nursing services in the home and facilitate transitions of care," according to a company press release.
The acquisition, expected to close in the second quarter, would make myNEXUS a wholly owned subsidiary of Anthem and part of Anthem's Diversified Business Group.
"Providing timely care for members in their homes allows for both excellent personalized care as well as the comfort of being in preferred environments," Prakash Patel, MD, executive vice president at Anthem and president of Anthem's Diversified Business Group, said in a statement. "Bringing the right level of whole person care into the home has been demonstrated to improve outcomes, reduce readmissions and improve members’ and their family’s experience of wellbeing."
MyNEXUS, which delivers integrated clinical support services to approximately 1.7 million Medicare Advantage members across 20 states, offers a digital platform to automate the home visit process and staffs over 250 clinicians.
"The myNEXUS team is thrilled to be partnering with Anthem to build upon the value we deliver to our customers and their members," Juan Vallarino, CEO of myNEXUS, said in a statement. "The strength of Anthem’s Diversified Business Group platform will allow us to broaden our capabilities as we strive to transform how quality healthcare is delivered to the people we serve."
Recently, Anthem has been been active in acquiring other healthcare organizations.
In February, Anthem entered into an agreement with InnovaCare Health to acquire several of its affiliates in Puerto Rico.
InnovaCare, based in White Plains, New York, is a value-based health insurance company with an integrated portfolio of health plans, medical organizations, and clinical networks. Anthem will acquire InnovaCare's Puerto Rico-based subsidiaries MMM Holdings, LLC (“MMM”), its Medicare Advantage plan MMM Healthcare, LLC, and its affiliated companies and Medicaid plan.
Rick Pollack was joined by CEOs of University Hospitals Health System, Mon Health System, and Our Lady of the Lake Regional Medical Center on a press call to discuss the financial effects of the pandemic on their organizations.
The American Hospital Association (AHA) held a press call Tuesday afternoon with three health system CEOs regarding the upcoming Senate vote to extend the moratorium on Medicare sequester cuts.
Last week, the House of Representatives passed H.R. 1868, a bill that would eliminate 2% cuts to all Medicare payments until the end of 2021. If the bill does not pass the Senate, cuts are scheduled to resume on April 1.
Rick Pollack, CEO of the AHA, is urging the Senate to extend the moratorium until the end of the COVID-19 public health emergency, citing diminished hospital and health system revenues.
"Clearly the time for Congress to act is now," Pollack said during the press call. "They've got to act now to stop the sequester from kicking in on [April] 1. In addition, we urge lawmakers to provide additional funding for the Provider Relief Fund and provide relief in terms of the repayment of loans from the accelerated [Medicare] payment program."
On the same day as the press call, Kaufman Hall released its National Hospital Flash Report for March, which found hospitals are continuing to struggle with thinning margins despite signs the COVID-19 pandemic may be subsiding.
Kaufman Hall also prepared a new analysis, released by the AHA, which found that on average, 39% of hospitals will operate in the red in 2021. The study found in its worst-case scenario that on average, half of hospital operating margins would operate in the red in 2021.
Last summer, the AHA released a report projecting hospitals could see losses of $323.1 billion or more in 2020 due to the pandemic, and projected hospitals could lose more than $20 billion per month due to a decline in patient volumes.
Hospitals and health systems are still facing financial woes due to the pandemic, including three provider organizations that joined Pollack on the press call.
Cliff Megerian, MD, CEO of University Hospitals Health System, said during the call that while the Cleveland-based nonprofit organization is working hard to meet patients' needs and administer vaccines, its surgery and procedure volumes have not recovered to pre-pandemic levels, which is impacting them financially.
"If we incur Medicare cuts at this time, our recovery efforts would be significantly impacted, but more importantly, our communities would be harmed as well," Megerian said.
David Goldberg, president and CEO of Mon Health System, a rural, four-hospital system headquartered in Morgantown, West Virginia said during the call that like many other rural health organizations, Mon Health System has experienced financial strife during the pandemic. This has been partly due to patients putting off care and developing worsening conditions that put them in “bad shape.”
"We implore Congress to not put the sequester back into place," Goldberg said. "We implore Congress to keep working diligently on getting those [Provider Relief Funds] to us, so we can continue to be operational for the communities we serve, to stay accessible."
Scott Wester, CEO of Our Lady of the Lake Regional Medical Center, which is part of the Franciscan Missionaries of Our Lady Health System, and located in Baton Rouge, Louisiana, said the state has seen a 13% increase in Medicaid recipients over the last year, resulting in a financial crunch for providers.
“Costs are way up and we continue to see acceleration in our supply chain expenses as well," Wester said. "Having the cuts to Medicare continues to make us have to prioritize, especially more than ever."
The physician-owned and physician-led integrated primary care organization will now be known as Summit Health.
Physician-owned Summit Medical Group and urgent care provider CityMD unveiled a new corporate identity Thursday morning.
In a move to further solidify the 2019 merger between the two organizations, it was announced that the brand will now be called Summit Health.
CityMD, which will keep its name, will now be identified as "a Summit Health Company."
According to Dr. Jeffrey Le Benger, CEO of Summit Health, a brand refresh was needed to show potential patients that the two companies are part of a single organization.
"Our 700,000 unique patients [in New York and New Jersey] know our brand and know we're a one-stop-shop for [ancillary and specialty care,]" Le Benger told HealthLeaders during a recent interview.
As the organization continues to grow, the rebrand will position Summit Health as one integrated company for future potential patients.
During the pandemic, Summit Health and CityMD followed their existing growth strategy, while also testing and caring for patients. Summit Health also added 18 standalone CityMD urgent care centers and 150 new providers.
"For us, it was all about taking care of patients. But, even during COVID, our expansion and our growth has not stopped, because we believe in our model," Le Benger said.
Summit Health, which has locations in the tri-state area and serves patients from New York, New Jersey, Connecticut, and Pennsylvania, has plans of continued growth in those areas. Adding to the organization's "hub and spoke" growth strategy, over the course of the next year, there will be more than 200 locations built, including the addition of two major hubs in New Jersey.
Summit Health also has a provider group in Bend, Oregon, and is looking to expand in the Pacific Northwest, as well as looking to expand into other states.
Le Benger added that no matter how fast the organization grows, it will always focus on doing what's right for the patient.
"I am still a practicing physician, so I will never forget it's all about the patient first and getting the right health care delivery model,” Le Benger said.
The new branding also includes a logo refresh for the organization. In the press release, Summit Health Chief Marketing Officer Matt Gove said, "The fresh, modern logo and brand identity evoke the feeling of connection on many meaningful levels."
DeAnna Minus-Vincent, MPA, chief social integration and health equity strategist at RWJBarnabas Health, details how the New Jersey-based health system is creating an antiracism culture change across its enterprise.
Hospitals and health systems have recently taken larger steps to address the social determinants of health (SDOH) in the communities they serve while also promoting diversity, equity, and inclusion (DEI) efforts within their own organizations.
In February, the Catholic Health Association of the United States along with 23 Catholic provider organizations signed the Confronting Racism by Achieving Health Equitypledge, marking a public attempt to tackle systemic racism.
New Jersey-based RWJBarnabas Health has made similar steps by announcing an antiracism commitment at the end of 2020 to address racism among the health system and in the communities it serves. Ending Racism Together seeks to change the culture of RWJBarnabas Health across the enterprise.
DeAnna Minus-Vincent, MPA, senior vice president and chief social integration and health equity strategist for RWJBarnabas, spoke with HealthLeaders about how the health system is rolling out Ending Racism Together, why the work is important for healthcare leaders, and how the organization will measure the success of the initiative.
This transcript has been edited for clarity and brevity.
HealthLeaders: Why is it important for hospitals and health systems to focus on racism and ensuring healthcare equity for all?
DeAnna Minus-Vincent: Racism is an SDOH [and] it produces health disparities. We've seen it for years; it manifests itself as food insecurity, as housing insecurity, and as stress. As we know, those all manifest as chronic illness, and then ultimately, in premature death.
HL: What sparked RWJ Barnabas Health’s Ending Racism, Together initiative?
Minus-Vincent: For the past several years, RWJBarnabas Health has been immersed in addressing social determinants of health, advancing health equity and improving our hiring practices to create a more diverse workforce.
After the pandemic began and the social unrest magnified, we realized that we needed to accelerate our efforts across our enterprise. We had been on this journey for the past three or four years, but we realized we needed a direct focus on racism. We are looking at all our policies, processes, practices, and behaviors, and are intent on dismantling racism in a very intentional and highly focused way.
HL: The initiative has four primary focus areas: patient care, workforce, community, and system operations. How will each of these areas be affected by the initiative?
Minus-Vincent: Patient care will focus heavily on our clinical practices. [We'll look] at our internal and regional data to develop priority initiatives. [We'll look] at evidence-based practices to look at things such as black infant mortality, black maternal mortality, emergency room wait time, [factors] such as the use of pain medications, the use of different clinical machines and AI, and how that's employed across the spectrum. [We'll also examine] things in the clinical realm that have been racist and have led to poor outcomes for people of color.
As far as our workforce, [we'll look] at [factors] such as parity in pay, disciplinary actions and how discipline is meted out for black and brown individuals compared to their white counterparts, how we hire, and whether our organization is diverse across the spectrum. [We'll examine how to] attract, recruit, and retain individuals of color across all areas of the organization, our HR policy, and our board composition.
In the community area, [we'll look at] the SDOH. Everything from language to housing, to food insecurity, and how [to] ensure that it's integrated directly into critical care.
And then for operations, [we'll examine] other areas that bolster the first three [including] IT, marketing and communications, and procurement.
HL: What steps have the health system already taken to fulfill the mission?
Minus-Vincent: We have done quite a bit of work to date and a lot has been in building out our infrastructure.
We have a steering committee that is led by our president and CEO [Barry Ostrowsky] [with] people from across the system. It is diverse in its disciplines, its levels of authority, and its racial and ethnic composition.
We have initiated a process requiring that [when hiring] for all leadership positions higher than the vice president [level,] if the finalists are not diverse or female, it requires some justification to ensure that we're moving in that direction.
We've looked at integrating SDOH screenings into the clinical setting through our Health Beyond the Hospital program. We've also looked at making translation and interpretation services more readily available for those individuals who need them because we know that people who have limited English proficiency have poor health outcomes.
We are completing a five-part provider education series that's virtual and self-led, designed to increase knowledge about bias, racism, and SDOH. We've also included a racial equity assessment so that we are methodically creating policies, programs, and procedures to ensure that we are not harming communities of color.
We are making some true strides in this area; figuring out ways where we can identify racism and allow our providers and patients to record it because we need to move in this direction.
HL: How will you measure the success of the initiative?
Minus-Vincent: We are actively working with a consulting firm, and we are also looking at detailed metrics. We want both our internal and external stakeholders to hold us accountable. We will have dashboards that will have cascading goals from individuals up to the priority initiatives, where each goal will cascade all the way down to tactics, and they will be measured.
So, for instance, if in fact, our goal is to ensure that individuals are screened for their social determinants, then one of the priority initiatives is to ensure that individuals who have limited English proficiency are provided with interpreters. We will ensure that our intake workers understand that when someone is checked in, they are assessed for race, ethnicity, preferred language and their need for an interpreter.
Right now, as with many healthcare systems, that may not always happen on the upfront, but if it does not, because, as we know language and race contribute to health outcomes and by not asking we are contributing to racist practices, intentionally or unintentionally It will be a full goals cascade from social determinants, all the way down to asking a question about race, ethnicity, and language preference, and modality.
HL: How can other hospitals and health systems join the fight to end racism and create racial, ethnic, and cultural equity in the communities they serve?
Minus-Vincent: Other healthcare systems can join the fight by first looking at themselves and their readiness to do so.
We are fortunate in the fact that we have leadership that believes in this—our president and CEO, as well as our board. They are committed to this effort and they were ready to take a progressive step.
[Health systems should] identify the needs in their system and be prepared to roll up their sleeves and do the hard work.
It is not something that will be solved overnight. Racism has been around for centuries and it's also not something that only people of color can solve. It's about everyone deciding that it's a priority and everyone willing to put in the work.
Patrick M. O'Shaughnessy, DO, MPA, FACEP, CHCQM, who previously served as chief clinical officer, will lead the health system effective April 16.
Catholic Health's board of directors recently announced the appointment of Patrick M. O'Shaughnessy, DO, MPA, FACEP, CHCQM, to lead the New York-based health system.
O'Shaughnessy, who joined Catholic Health in 2006 as assistant director of emergency medicine for St. Charles Hospital in Port Jefferson, New York, will serve as president and CEO effective April 16.
He's also served in the organization's C-suite for over a decade as executive vice president and chief medical officer, then most recently as executive vice president and chief clinical officer.
"In addition to embracing our Catholic Health culture, commitment to Catholic moral teaching and mission, and our innovative strategic plans, Dr. O’Shaughnessy will help lead and guide us in providing compassionate, high quality care, while serving the spiritual, physical, and emotional needs of patients," Salvatore F. Sodano, chairman of Catholic Health’s Board of Directors, said in a statement. "[He] is an accomplished physician executive with more than 18 years of administrative leadership experience in strategy, innovation, operations, and design in health care. He is well known, trusted and respected by the Long Island medical community, and has established a favorable reputation with clinical leaders nationally and in the tristate area.”
O'Shaughnessy is succeeding Dr. Alan D. Guerci, who had planned to retire in June 2020 but stayed on until the board's national search for a replacement was complete.
"I am humbled, honored and excited to assume the role of president and CEO at Catholic Health, which has been a leader for decades in providing high quality health care to the communities of Long Island," O’Shaughnessy said in a statement. "I am inspired every day by the exceptional team of caregivers at Catholic Health, who truly live our mission, and I am committed to build upon Dr. Guerci’s legacy and position the organization for future growth and success in the years ahead."
O'Shaughnessy's promotion was announced a month after the New York-based health system unveiled its rebranding decision to shorten its name and receive a new logo.
Kevin Conlin, who previously served as the organization’s CEO, leaves behind a legacy that will "endure for years."
Horizon Blue Cross Blue Shield New Jersey (Horizon BCBSNJ) announced Monday the retirement of chairman Kevin Conlin.
Conlin, who previously served as the organization’s CEO, will be replaced by Horizon BCBSNJ board member Todd C. Brown, who has served on the board since 2012 and as lead director since 2018.
"One of Kevin’s strengths is his ability to engage and inspire the people around him,” Brown said in a press release. “He won the confidence and admiration of his fellow Board Members just as he did the 5,500 employees he led to achieve so much for the company and the members we serve.”
Conlin, who has served Horizon BCBSNJ since 2012, has left a lasting impact on the communities the insurer serves that will "endure for years," according to the press release.
He joined the organization to lead its healthcare value strategy, where he drove efforts to "redefine" how Horizon works with doctors and hospitals to improve performance and outcomes, quality, and affordability in the healthcare system, and to improve the member experience.
Under Conlin's leadership, the organization entered multiple strategic and innovative partnerships and collaborations including partnering with Atlantic Health System, launching the OMNIA Health Alliance as well as Braven Health, a joint venture between Horizon BCBSNJ, Hackensack Meridian Health, and RWJBarnabas Health to offer Medicare Advantage plans to seniors.
"Kevin Conlin has played a major role in shaping and improving health care for the people of New Jersey. His work building innovative care delivery and payment models with the state’s leading health systems and physicians has produced transformative and sustainable benefits," Gary St. Hilaire, president and CEO of Horizon BCBSNJ, said in a statement. "That work earned him the trust and respect of those health leaders who shared his refusal to accept the status quo and who joined together to transform healthcare in New Jersey."
Conlin's retirement comes after a multi-year succession planning process that started in 2019. In April 2020, Conlin transitioned from president and CEO to his role as executive chairman.
A recent McKinsey & Company report found the 46 million people who reside in rural counties have faced major racial and ethnic health inequities during the pandemic.
During the pandemic, rural communities with diverse populations experienced 1.7 times more COVID-19 deaths per capita than other rural communities around the country, according to a recent McKinsey & Companyreport.
In rural counties where the population is comprised of at least 33% of racial or ethnic minority groups, deaths due to the pandemic were 1.5 times higher than in other communities.
Communities where the largest population group were American Indians or Alaska Natives saw 2.2 times more COVID deaths, communities where the largest population group were Black or African American saw 1.7 times more COVID deaths, and communities where the largest population group was Hispanic saw 1.5 times more COVID deaths.
The McKinsey report underscores the severity of the impact of COVID-19 on underprivileged and under-resourced communities across the nation.
Other key findings from the report found that the 46 million people who reside in rural counties have faced major racial and ethnic health inequities during the pandemic, where diverse communities saw more deaths per 100,000 individuals than other rural counties.
More than 60% of counties with at least 30% more racial and ethnic minority residents have had at least 150 COVID deaths per 100,000, in comparison to 32% for other rural counties.
Ninety percent of Mississippi’s rural counties that have a large Black or African American population have had more than 150 COVID deaths per 100,000, in comparison to 62% for all other rural Mississippi counties.
Nearly three-quarters of Texas’ rural counties that have a large Hispanic population have had more than 150 COVID deaths per 100,000, in comparison to 51% for all other rural Texas counties.
The report identified four factors that appear to contribute to the spread of the coronavirus in diverse rural communities:
More likely to have a higher underlying health risk or are older
Face greater socioeconomic vulnerabilities compared to urban communities
Have lower access to care including healthcare professionals and resources
Are less likely to adopt public health interventions including wearing facemasks or social distancing
To help protect rural communities, the report also identified short-term and long-term steps that public, private, and social sector stakeholders can take to help mitigate the racial and ethnic health inequities.
In the short-term, stakeholders can:
Expand workforce capacity and ensure essential supplies such as PPE are stocked and accessible
Ensure public health measures and accelerated vaccination is taking place across the state
Address social determinants of health and non-COVID related health and social needs
In the long-term, stakeholders can invest in measures to "transform access and care quality in the rural healthcare system," including:
Pursue value-based care models
Implement population health measures
Increase the healthcare workforce and increasing healthcare access
Rural healthcare organizations need to be proactive in succession planning efforts, whether that’s through mentoring internal candidates for the C-suite or identifying external talent that can adapt to a challenging set of circumstances.
Succession planning can be a tough ordeal in itself, but being a rural healthcare organization can make the search even harder.
Limited resources paired with lack of income due to the pandemic has had devastating impacts on rural health systems looking for executive leadership.
One organization undertaking this challenge is Cottage Hospital, a 25-bed facility located in Woodsville, New Hampshire. Maria Ryan, PhD, CEO of Cottage, is leaving her post at the end of the month, after more than a decade-long tenure at the hospital.
Ryan, a board-certified family nurse practitioner with a specialty in emergency medicine, joined Cottage in 2006 and has previously served as the hospital's CNO and COO. She has served as the hospital's CEO for the past decade, where she created around 150 jobs for the organization and increased the hospital's care offerings.
Ryan, who has received the Louis Goran Award for outstanding achievement in rural healthcare from the National Rural Health Association, spoke with HealthLeaders about the hospital's succession planning effort and the challenges of finding the right leadership for rural organizations.
"I always describe Cottage as my professional love of my life. The values were just a great fit, and those values[are] to be the best we can be, and to share the value of excellence in integrity, and empathy, and compassion. That's what drives us in everything we do at Cottage," Ryan said.
MAKING IT OR BREAKING IT
Cottage is currently conducting a national search with an executive search firm to find the right fit for the rural hospital, which serves as a designated trauma center for New Hampshire and Vermont.
Holly McCormick, MSN, Cottage's CNO, will serve as the interim CEO until the position is permanently filled.
Through mentorship, Ryan said she was “able to elevate the people within [the] organization," citing her work with McCormick as well as Ann Duffy, MHA, the hospital’s CFO. This strategy is especially helpful in rural hospital succession planning as these organizations typically lack the bountiful resources found at other larger health systems.
Additionally, leaders of rural hospitals must be quick on their feet, understand how to multi-task, and utilize the limited resources that are provided to them.
"A misnomer is if you've worked in a large hospital, you can lead a critical access hospital, and that's not always true," Ryan said. "Every decision you make can make or break the hospital; it's that dramatic."
"Every business deal or venture I get into; I have to be pretty darn confident it's going to be a solid decision. Otherwise, look at all the small hospitals that have closed," Ryan said.
She continued, "Small rural hospitals are cash poor and [leaders] have to be so financially and business savvy. It's not for everybody. [For example,] an executive from a 400- to 800-bed hospital may not be able to survive in a small hospital because they don't have the resources in their use."
Succession planning is a team sport when it comes to rural healthcare leadership. The hospital board and search firm will not only have to sort through people who don't have the experience of leading a smaller organization, they will also have to ensure that the next leader and their family will be ready for rural living.
"It's all about what you're looking for, what your family is comfortable in," Ryan said. "There are people out there who enjoy a rural environment, but it does make the search a little bit harder."
AVOIDING RURAL HOSPITAL MANAGEMENT DOWNFALLS
Mark Toney, a senior managing director at ToneyKorf Partners, LLC, offered similar insights as Ryan, noting that the leadership styles found at rural hospitals are not always the same as those found at large health systems.
He detailed three management types that typically lead rural and community hospitals.
Individuals who are early in their career; those looking to learn and grow into the next opportunity or position.
Late-stage career individuals who have been at the organization for many years; they may have served in the C-suite and then become a CEO.
Individuals who've made the lifestyle decisions to live in a small community.
"Regardless of which category they fall into, many people can lead effectively during stable and growth times. Unfortunately, in most of these three categories, the people are ill-equipped for the rough waters that we're facing in healthcare today." Toney added.
Toney added that making decisions in a rural hospital can be harder because it directly affects those the executive leaders know and love in the community, such as neighbors, friends, or family of a board member.
Toney explained that both the hospital leadership and board of directors need to work together to make sure the organization is being properly supported.
"The CEO needs to do an assessment of the board, and their management, to make sure they surround themselves with strength. But that board also has a responsibility to look at the CEO and do the reverse analysis to see what other sources or talents need to be added to the organization," he said.
However, in contrast to Ryan’s thoughts, Toney said that when it comes to leading rural organizations, he believes the required characteristics of an executive are the same as those at larger organizations.
"I philosophically believe that leadership characteristics are the same for a small, medium, or large organizations, and leadership is about focusing on the hospital team, and serving the community” he said. “It's not about oneself. All decisions should be made about what is best for the community and the employees, and not be made based upon the impact on the CEO position."
Rural hospital leaders should also be cognizant of what they don't know, according to Toney. If a leader doesn't have the answers, instead of moving ahead blindly, they should always ask for help.
"We're now operating in what I call a 'new environment’ and we are going to continue to see exponential change. Reimbursements are going to change, the use of technology is going to change, patients’ expectations and demands have changed and will continue to progress," he said. "The board and management should take a candid view of the long-term viability of the hospital or system as a standalone organization. If the potential is limited, or non-existent for a standalone basis, the leadership should begin immediately looking at strategic and operational affiliations, alliances, or partnerships."
'PROACTIVITY IS CRITICAL'
Being up to date with succession planning is a vital strategy for health systems and hospitals of all sizes, according to David Tyler, partner in healthcare advisory services at Grant Thornton LLP.
"It's important not just for boards, but for every level of an organization to have some idea towards succession planning," Tyler said. "The C-suite is such a critical success factor for organizations. The continuity that succession planning allows you to have is important."
"The reality is that every person is going to do one of two things: they're going to retire from the place they work for right now or they're going to leave either through their own choice or that of the organization,” he added. “It's almost a dereliction of duty not to be prepared to absorb that when the time comes."
A provider organization’s succession plan should be part of the overall business practice, Tyler explained, focusing on having both a “constant flow of candidates for mission critical positions” while also identifying talent and resources both “inside the organization and with whom you may have a relationship outside the organization."
He added that this business practice is "part of running a well and high performing organization." When it comes to succession planning, either for the C-suite, the board, or other levels, proactivity is critical.
"If you're proactive, as opposed to reactive, when someone leaves, it's not nearly as emergent of a situation,” Tyler said. “If you're proactive, you can also have a nod towards gender and racial diversity. If you can begin to groom your number twos and number threes to be number ones, and you do that with an eye towards diversity and inclusion, the organization will benefit from that sooner rather than later."
The acquisition is a step to "broaden access to innovative convenient lab services" in the Midwest and is slated to be completed in the second quarter of this year.
Quest Diagnostics and Mercy have signed a definitive agreement for the New Jersey-based diagnostics company to acquire the St. Louis-based health system's outreach laboratory business through an all-cash asset transaction, the organizations announced Monday.
Pending regulatory approvals, the acquisition is slated to be completed in the second quarter of this year.
Through the transaction, physicians and patients across the Midwest will have access to Quest locations, health plan coverage, and competitive pricing. The company stated that the deal is a step to "broaden access to innovative convenient lab services” in the Midwest.
“As one of the country’s leading large health systems, Mercy is exiting the physician lab outreach business to sharpen its focus on providing high-quality, equitable care,” Steve Rusckowski, CEO of Quest, said in the press release. “We look forward to working closely with Mercy to support their lab strategy. As pressures from the pandemic ease, and customer expectations and reimbursement pressures rise, we are talking to more and more top health systems about how Quest can help them enhance the effectiveness of their lab strategies.”
The Mercy outreach laboratory business serves providers and patients in Arkansas, Kansas, Missouri, and Oklahoma through 29 hospital labs and two clinic labs. If the acquisition goes through, testing will transition to a full-service Quest lab in Lenexa, Kansas, as well as to a network of "rapid responds laboratories across the region."
According to the press release, Mercy will continue to “wholly own and operate its hospital labs for tests connected to inpatient and hospital-based outpatient care needs."
“Mercy chose Quest to provide outreach lab testing because of its record of innovation and efficiency and our shared commitment to providing high-quality, convenient care that is accessible to all,” Lynn Britton, CEO of Mercy, said in the press release. “This relationship gives our patients and providers more convenient locations for sample collection and a significantly lower cost of testing while maintaining the same high-quality patients and providers need.”
Dennis Verzi, COO of Catholic Health, formerly known as Catholic Health Services of Long Island, details the strategy behind the rebranding and why faith plays a pivotal role in the health system.
The Catholic health system headquartered in Rockville Centre, New York recently underwent a rebranding effort, shortening its name from Catholic Health Services of Long Island and receiving a new logo.
Dennis Verzi, COO of Catholic Health spoke with HealthLeaders about the strategy behind the rebranding, and why faith plays a pivotal role in the health system.
"When you look at the goals of the rebranding … we have six hospitals within the system, three nursing homes, home healthcare, hospice, and a large agency to take care of developmentally disabled adults and children," Verzi said. "In each of the geographic markets, the individual hospitals have good local recognition. From a system perspective, we wanted to increase consumer awareness, particularly in Long Island, of the system brand and recognizing … all the operating entities as part of Catholic Health."
When changing the name, Verzi said the health system wanted to make sure it "kept the faith" in the branding.
"Catholic is who we are and why we exist," Verzi said. "From the very beginning, there was no question when we thought up what the new name should be."
Catholic Health's new logo. Photo courtesy of Catholic Health.
The new logo, which was created in collaboration with the Diocese of Rockville Centre, consists of faith-based and humanitarian imagery.
"The new logo is rather ingenious and creative," Verzi said. He explained that the logo has multiple meanings. From a Catholic of Christian perspective, it is made up of a chalice and the cross, and the outstretched arms represent the Holy Trinity.
From a secular perspective, the logo also looks “like a person with outstretched arms; a welcoming symbol, as we welcome everybody… of all faiths," he said.
Verzi reiterated that the health system is driven by faith.
"Our faith drives our mission, and our mission drives our business and our care platform,” he said. “The Catholic Church firmly believes in the sanctity of all human life and the dignity of every person, and that fits us well. We're not just providing sick care when people are sick … we also keep them well."
In early February, nearly two dozen Catholic Health systems joined the Catholic Health Association of the United States in signing the Confronting Racism by Achieving Health Equity pledge to confront systemic racism and achieve health equity.
While the organization hadn't signed the pledge at that time, Catholic Health is continuing their focus on health equity and fulfilling their mission to help the underserved, according to Verzi.
The health system is also shifting into population health, emphasizing “health and wellness preventative care, and bringing our services into the community," Verzi explained.
“While the health system has expanded of the last couple of years, there are "aggressive plans to increase [it] further," he said.
Additionally, the health system's new brand reflects that aim.
"We look at [it] from both vantage points, [as] a good business decision and the mission to serve a gift with population health and wellness," Verzi said.