Becker's Hospital Review

16 CFO / FINANCE How Baylor Scott & White doubled income as hospital admissions fell By Alia Paavola A lthough Baylor Scott & White Health saw its hospital admissions fall by 13,000 annually in the last two years, the Dallas-based health system grew its revenue by $1 billion and more than doubled its operating income to $725 mil- lion, according to e Dallas Morning News. Despite the 5.5 percent decline in inpatient stays, the system was able to adapt by shi- ing a majority of visits to outpatient sites. Last year, Baylor Scott & White had 12 mil- lion visits to its outpatient care sites, 3.5 million more visits than in 2015, and had 50,000 more outpatient surgeries per year. Last year, 63.1 percent of Baylor Scott & White's revenue came from outpatient visits. Baylor Scott & White's CEO Jim Hinton told the publication this shi is intentional. "Hospital inpatient stays are no longer the best barometer of healthcare activity," Mr. Hinton said. "We're going to need to rethink the measurements of success." Mr. Hinton said that Baylor Scott & White has partnered with several companies, in- cluding United Surgical Partners Interna- tional and Touchstone Medical Imaging, to bolster its outpatient care operations. Officials also have focused on value-based care initiatives to cut costs. is includes working to reduce hospital readmissions by offering primary care follow-ups and oper- ating an ACO. ese changes have helped Baylor improve its operating margin from 3.2 percent in 2017 to 7.2 percent in 2019. "We've taken a lot of costs out of the sys- tem," Mr. Hinton told the publication, "and then reinvested in digital capabilities and other venues." n UPMC hospital closes ER, ends inpatient services By Ayla Ellison U PMC Susquehanna Sunbury (Pa.) closed its emergency room on Jan. 31, according to The Daily Item. Pittsburgh-based UPMC announced plans in December to close UPMC Susquehanna Sunbury, citing dwindling patient volumes. Though the hospital planned to officially close its doors March 31, UPMC Susquehanna Sunbury stopped accepting ambulance transports Jan. 28 and closed its ER and ceased inpatient services Jan. 31, according to The Daily Item. "Officials have worked collaboratively with the Pennsylvania Department of Health, EMS agencies, referring providers, media, government officials and community agencies to inform the public of the closure," a UPMC spokesper- son told The Daily Item on Jan. 30. The Sunbury hospital planned to offer outpatient services until March 31. n 4 Chicago hospitals to unite, form single healthcare system By Alia Paavola F our hospitals on Chicago's South Side have signed a nonbinding agree- ment to form a single integrated healthcare system. The four hospitals are Advocate Trinity Hospital, Mercy Hospital & Medi- cal Center, South Shore Hospital and St. Bernard Hospital. "Working individually, our hospitals will not be able to provide sustained, quality care on the South Side," said Charles Holland, president and CEO of St. Bernard Hospital. Under the agreement, each provider will contribute or transfer existing hos- pital assets to help the combined system. The new system would have a new leadership team and an independent board of directors. Each of the four hos- pitals would be able to appoint someone to the board. The leadership team will be named when the four providers sign a definitive agreement, according to a news release. They expect to sign a final agree- ment by the middle of this year. The group of providers said it is committed to ensuring new facilities open before any existing ones close. They also plan to retrain and rehire current staff when the changes are made. The four hospitals are seeking community input to help shape decisions about new facilities and services. Currently, they plan to invest $1.1 billion to expand access to primary and preventive care and build a hospital to replace aging facilities. Consolidating may also help improve the financial picture of the hospitals, all of which posted net losses in 2018. The losses ranged from $1.3 million at South Shore to $68.3 million at Mercy. Combining could also help the institutions bolster bargaining power with in- surers and suppliers, cut duplicative services and eliminate other expenses, such as equipment. n

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