Becker's Hospital Review

12 CFO / FINANCE CarePoint issues 2,700 layoff notices, prepares to sell 2 hospitals By Ayla Ellison J ersey City, N.J.-based CarePoint Health is taking steps toward selling two hospitals and getting out of the hospital business, according to The Jersey Journal. CarePoint signed a letter of intent in late October to sell Christ Hospital in Jersey City and Hoboken (N.J.) University Medical Center to Orange, N.J.- based RWJBarnabas Health. In anticipation of the sale, CarePoint sent layoff notices in November. More than 2,100 employees at Hoboken University Medical Center and Christ Hospital received layoff notices that are expected to take effect Jan. 13. More than 620 layoff notices were sent to employees at CarePoint's headquarters and affiliated entities in Bayonne, N.J., and Jersey City, accord- ing to the report. Sending the notices to employees affected by the sale "is only one step in a very long process," a CarePoint spokesperson told The Jersey Journal. "RWJBarnabas Health plans to operate Christ Hospital and Hoboken Uni- versity Medical Center as full-service acute care hospitals after the transition occurs," a spokesperson for RWJBarnabas Health told The Jersey Journal. "Part of the planned assessment of operations will include a review of staff- ing, facilities, policies and procedures." In addition to selling two hospitals to RWJBarnabas, CarePoint is seeking a strategic partner for its other hospital, Bayonne (N.J.) Medical Center. n BCBS plans debut national provider network: 4 things to know By Morgan Haefner T he Blue Cross Blue Shield Association, which represents 36 indepen- dent Blue companies, plans to launch a national provider network that includes healthcare providers who routinely offer high-quality care at a lower price, according to Crain's Chicago Business. Four things to know: 1. Once launched in January 2021, the Blue high-performance network, or HPN, will cover more than 185 million people in 55 markets nationwide. 2. BCBSA said the HPN will help large employers control medical costs and enhance care for their workers. The program comes as large national employers demand more consistent pricing and quality metrics across their markets. 3. Providers will be selected by independent Blue plans for the network based on existing quality measures and relationships, according to Crain's. 4. The HPN is the first big associationwide push from BCBSA in 25 years, Jenni- fer Atkins, vice president of network solutions for the association, told Crain's. Independent Blue plans have rolled out their own programs in the past. n How Walgreens, CVS see the future of pharmacy By Alia Paavola A s the traditional pharmacy industry gets increasingly difficult to navi- gate, two of the largest retail phar- macy chains in the U.S. are trying new and starkly different approaches to remain afloat. CVS has largely bet on healthcare as the way forward, opening HealthHubs fo- cused on managing chronic conditions, acquiring health insurer Aetna and ending cigarette sales. "What we're witnessing is the evolution of the drugstore from what it's been to what it needs to be to meet the needs of consumers," CVS CEO Larry Merlo told Business Insider. "It's time for another evolution. We see us leading that evolution with what we're doing, with our strategy and the drugstore becom- ing more of a health destination." Walgreens, on the other hand, has shied away from healthcare throughout 2019. In October, the company announced plans to shutter the in-store health clinics that it op- erates. Instead, the company has been strik- ing up partnerships with companies like Kroger, Jenny Craig weight loss services and a subscription beauty company, Birchbox. Walgreens also is considering a move to be- come a private company, which may relieve some of the quarterly pressure it faces as a public company. Executing either strategy will prove chal- lenging for the retail pharmacy chains, according to Business Insider. e CVS dive into HealthHubs is risky be- cause operating clinics is costly, Business In- sider reported. Other retailers moving into clinic services have failed. Walmart, which is renewing its push into healthcare, never completed its initial plan to open 2,000 clin- ics nationwide because of the cost. And while Walgreens' proposed strategy to go private may relieve some pressure, the company would still need to execute a win- ning strategy no matter who owns it. n

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