Becker's Hospital Review

19 CFO / FINANCE How Hoag has fared since splitting from Providence By Ayla Ellison H oag, a three-hospital system based in Orange County, Calif., ended its affiliation with Renton, Wash.-based Providence in January aer nearly a decade together. More than six months aer parting ways with the 52-hospital system, Hoag is successful- ly navigating the challenges that have taken a financial toll on many health systems. e first six months of this year have been challenging for hospitals and health systems across the nation, with many reporting steep op- erating losses. Hoag ended the first half of this year with operating income of $31.7 million, down slightly from $34.6 million in the same period of 2021. How is Hoag remaining financially stable during such a turbulent time in healthcare? e key is focusing on staff, physician and patient experience, Hoag Executive Vice President and CFO Andrew Guarni told Becker's. Staffing issues, and the rising costs tied to them, are a top concern for hospital executives across the country. Hoag tried to stay ahead of the issues by proactively giving staff out-of-cycle pay increases. e health system gave the first increase in August of last year, the second in December and a third in April. "Spreading the increases out allowed us to better incorporate the ad- ditional expense into our financials, as well as strategically exceed ex- pectations of staff, while remaining extremely wage competitive in the market," Mr. Guarni said. e effect of those increases has been evident in recent months. Mr. Guarni said Hoag is seeing higher offer acceptance rates and signifi- cantly less turnover. e health system was also able to avoid using registry staff and the associated expenses. e wage increases in combination with other measures to improve staff and physician experience has translated into a better patient ex- perience, according to Mr. Guarni. "at has resulted in continued strong volumes, in both the inpatient and outpatient settings," he said. Teaming up with a larger organization can, in some cases, help a health system better navigate the challenges of the industry. However, that isn't always true, and Hoag leaders believe being hyper-focused on physicians, staff and the local community is the key to success. "We believe navigating in today's increasingly complex healthcare environment requires a level of engagement and market knowledge that is deep and responsive and rewards less complexity, local decision making and community connection," Mr. Guarni said. n Crozer Health to end inpatient acute care at 2 hospitals By Molly Gamble S pringfield, Pa.-based Crozer Health will halt all services at Delaware County Memorial Hospital within 60 days and transition the hospital to an inpatient behavioral health center by spring 2023, according to The Philadelphia Inquirer. Crozer has scaled back services at the 168-bed hospital in Drexel Hill, Pa., throughout the year. In January, Crozer closed the maternity ward at Delaware County Memorial. By June, it suspended outpatient and intensive care services. Crozer is also adjusting services at its 25-bed Springfield (Pa.) Hospital, which will offer only outpatient services by 2023. Crozer includes four hospitals. It was acquired by Prospect Medical Holdings in 2016. Its Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park will continue to operate as acute-care hospitals. Crozer announced the changes to Delaware County Memorial Hospital and Springfield Hospital Sept. 21, about one month after its deal with Wilmington, Del.-based ChristianaCare fell through. The systems had signed a letter of intent in February for ChristianaCare to acquire Crozer from Prospect, but both parties said significant changes in the economic landscape in subsequent months impacted the deal's ability to move forward. n OhioHealth to lay off revenue cycle staff By Ayla Ellison C olumbus-based OhioHealth has informed state regulators that it will lay off 58 workers on Nov. 4. Those affected by the layoffs include accounts receivable specialists, coders, a manager of financial services and a supervisor of patient financial services, according to the notice filed by OhioHealth on Sept. 2. The layoff notice, signed by OhioHealth's vice president of human resources, says the layoffs are permanent and no bumping rights exist. The health system filed the notice about two months after The Columbus Dispatch reported that OhioHealth is eliminating 637 information technology and revenue cycle management jobs. "We are committed to providing a high-level of support to all associates affected by this change," Colin Yoder, director of media and public relations at OhioHealth, told Becker's in July. "This includes outplacement support, a job fair specifically for those displaced, temporary salary and benefits continuation after their OhioHealth employment ends and upskill training for those in information technology." n

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