Becker's Hospital Review

10 CFO / FINANCE Florida system votes to go private By Kristin Kuchno F ort Myers, Fla.-based Lee Health's board of directors voted Oct. 7 to convert to a private nonprofit health system, News-Press reported Oct. 14. e board voted 9-1 on the conversion. e Lee County Board of County Commissioners must approve it before it is finalized, News- Press reported. An Oct. 8 commissioners special meeting was canceled because of Hurricane Milton and will be rescheduled to approve the health system's privatization. e Oct. 11 deadline to finalize the process was also extended due to the hurricane aer an emergency order by Florida's division of emergency management, according to a statement shared with Becker's. e county board is expected to approve the conversion, News-Press reported. "We are grateful to the Board of County Commissioners and state government leaders for recognizing the importance of prioritizing life and safety during the storm and still allowing the opportunity for this important work to continue for our community," Lee Health President and CEO Larry Antonucci, MD, said in the statement. "We look forward to working with the Board of County Commissioners to complete this process and help secure Lee Health's safety net mission far into the future." e health system board of directors voted 9-1 in support of conversion in June. e commissioners voted Aug. 20 to publish a dra of the mission agreement detailing the assets and liabilities involved in the transition. In September 2023, Lee Health first said it was evaluating the benefits of converting from a public to private nonprofit system. It was a private system for its first 50 years, and began operating as an independent healthcare district in 1968, created by the Florida legislature and operated by its own board of directors. Its current structure restricts the system from operating outside of Lee County. Privatization would allow for expansion outside of the county and would lead to $1 billion more net patient revenue over the next decade, according to the system. Dr. Antonucci told Becker's in March that considering conversion had been a difficult choice. "We've operated as a public nonprofit for more than 60 years. And as we look at the landscape changing here in Florida, especially with repeal of certificate of need, there are limitations that are placed on us as a public entity. In addition to that, our public status here doesn't allow us taxing authority, which is very unusual for a public," Dr. Antonucci said. "So as a result, we're looking at the potential change in the landscape and the opportunity that could present itself if we were to convert to a private nonprofit. ings like the ability to work outside of our county borders and operate more regionally, and the ability to do more joint ventures and partnerships with physicians and others." Lee Health includes four acute-care hospitals and two speciality hospitals, as well as outpatient centers and clinics. n The rising cost of physician subsidies in 10 numbers By Laura Dyrda T he median physician subsidy increased in the second quarter while the gap between primary care and surgical specialists widened, according to data from Kaufman Hall's Physician Flash Report. "As provider subsidies continue to rise, many systems are placing greater emphasis on APP productivity as a way to manage their return on investment in the physician enterprise space," states the report. Kaufman Hall gathers data from more than 200,000 employed providers, including physicians and advanced practice providers, from 100 specialties Here are 10 findings from the report. 1. The median subsidy per physician hit nearly $300,000 in the second quarter of 2024. 2. The median loss per full-time employed physician grew 3% year over year, driven by increased expenses and labor costs. 3. The median loss per full time physician surgical specialist was $431,000, more than double the average primary care physician subsidies. 4. Primary care physician subsidies hit $200,000 per year on average. 5. Medical specialist subsidies hit $411,000 per year on average. 6. Median subsidies for hospital-based physicians hit $266,000 in the second quarter. 7. The median loss per full time provider, including advanced practitioners, hit $232,145 in the second quarter, up from $225,072 over the same period last year. 8. Average loss per full time provider for primary care practitioners hit $150,000 while loss per surgical specialist provider hit $294,000. 9. Full-time physician pay increased 3% year over year in the second quarter. 10. Median work relative value units per full time physician physician hit 6,095 in the second quarter, up from 5,979 in the previous quarter and 5,736 over the same period last year. n

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