Issue link: https://beckershealthcare.uberflip.com/i/1541770
18 THOUGHT LEADERSHIP power with health insurance companies Sarina Rodriques, FACHE. Associate Vice President of System Lab Operations at Rush University System for Health (Chicago): When it makes sense for hospitals to consolidate, it can bring together great minds who share common beliefs and values to deliver care using limited healthcare dollars and expertise in a highly scalable business model. In the Rush system, we are seeing immediate benefits of consolidation at a system level with our laboratories. We are developing best practice teams for all laboratory disciplines at all of our six laboratories testing locations. Sharing expertise in transfusion medicine, chemistry and pathology is affording us the benefits of removing duplication in effort to maintain six sets of policies, training documents and validation protocols. e BPT works together to support a OneRUSH OneRML methodology. I believe consolidation is necessary. David Allen, DNP, RN. Division Chief Nursing Officer of Adult Services at OU Health (Oklahoma City): Hospital consolidation is progressing rapidly. Independent practices and community hospitals are frequently being acquired by larger health systems, while regional hospital networks are expanding across state lines to form more substantial healthcare organizations. Hospital systems are increasingly purchasing outpatient centers and merging with health plans, and private practices are combining resources to sustain operations. Insurance providers are also forming strategic partnerships to maintain competitiveness. e consolidation of healthcare entities presents both benefits and challenges. Among the advantages, consolidation can enhance operational efficiency, improve patient care through the sharing of resources, and increase bargaining power with both suppliers and payers. Larger organizations may gain access to advanced technologies and standardized protocols, which have the potential to improve outcomes and reduce costs for patients. Nevertheless, there are significant concerns associated with consolidation. e reduction in market competition may lead to increased service prices and fewer options for patients. Additionally, such changes can limit the autonomy of individual providers and diminish responsiveness to local community needs by centralizing decision-making within larger organizations. Critics further contend that consolidation may result in workforce reductions and negatively impact patient-provider relationships. e healthcare industry is entering a pivotal period. As numerous organizations consider consolidation, it is essential to ensure that the potential advantages clearly surpass the associated risks as we move forward. Barbara Martin. CEO of BJM Healthcare: Over the next three to four years consolidation within healthcare organizations is going to accelerate. We are seeing consolidation of hospital service lines within systems and the healthcare procedures shied to the hospital which has the best contracted reimbursement. ere needs to also be enough volume to support the hospital service lines thus decreasing expenses and maximizing quality. Hospitals will continue to close with very low volumes, and the patients will be treated at the larger hospitals thus driving profitability. Overall consolidation will accelerate in the next several years. Joy N. White, DNP, RN. Vice President and Chief Nursing Officer of Legacy Health Good Samaritan Medical Center (Portland, Ore.): Over the next few years, I anticipate that hospital consolidation will continue, but with sharper intent — shiing from survival-based mergers to strategic alliances that blend financial strength with mission alignment. We'll see more partnerships between hospitals, technology firms, and community organizations designed to expand access, share data, and strengthen care coordination. I also hope to see systems move beyond transactional consolidation toward transformational integration — where organizations evaluate the entire continuum of care and maximize economies of scale to build sustainable, lifelong care models for their communities. e systems that thrive will not only innovate but also create seamless experiences, making it easier for patients to navigate the oen complex healthcare landscape. e health systems that endure will be those that pair innovation with humanity, designing networks where prevention, behavioral health, and chronic disease management are as integral as acute care. Greg Sieg. Chief Information Security Officer of University of Michigan Health Regional Network (Ann Arbor): We've already seen a wave of healthcare consolidation, and with ongoing uncertainty around reimbursement models, I believe we're on the cusp of another acceleration in the next few years. Organizations should keep their integration and risk playbooks handy. Alyssa Livengood Waite, MHA, MSN, RN, FACHE. Associate Chief Nursing Officer of Penn Medicine Lancaster General Health: Hospital consolidation presents both challenges and promising opportunities for leadership. Consolidation of complex organizations is not 'business as usual', it will require adaptive leadership skills. Success will depend upon our ability to adapt–leading collaboratively across complex systems, embracing innovation, and maintaining the core values while adapting to a broader organizational framework. While consolidation can yield economies of scale, integrating disparate systems and technologies will introduce significant financial pressures. Nurse leaders must be equipped to advocate for investments that balance the clinical needs of their teams with fiscal responsibility. Learning to work differently within the multi-hospital context requires fostering a cohesive culture through collaboration to support the needs of all entities effectively knitting them together. Expanded career pathways, offering new opportunities for growth across the system, will support individual growth and corporate strength. Adaptive leadership demands emotional intelligence, enabling the leader to connect change initiatives with organizational values while aligning them to the individual purpose of the teams we serve. Joseph Carr, RN, MBA. Vice President of Supply Chain at Akron Children's (Ohio): Having started my career in banking, real estate, and private equity, the current state of healthcare reminds me of those industries during turbulent times and a strong outlook of M&A. Declining reimbursements and rising costs are putting tremendous pressure on hospitals, and for many, mergers and acquisitions have become a perceived lifeline. Yet in business schools, M&A is oen studied as a what not to do case study especially when leaders fail to consider the long-term community impact. To avoid becoming one of those cases, executives must explore all options before consolidating, including engaging clinicians in open fiscal dialogue to identify solutions that preserve both financial and clinical integrity. In physician-led models, this discipline tends to come naturally; in others, it must be intentionally built. e hidden cost of consolidation is oen borne by patients. When large adult systems acquire independent children's hospitals, the result can be service reductions, redirection of capital to higher-margin adult lines, and