Issue link: https://beckershealthcare.uberflip.com/i/821337
113 Executive Briefing Sponsored by: Anatomy of a Post-Acute Care Partnership: A Guide to Finding the Right Partner and Forming a Successful Joint Venture I n communities across America — large and small — local hos- pitals serve a purpose that goes beyond being a center for on-demand emergency care. Our nation's healthcare facili- ties have a legacy and responsibility as leaders and guardians for the health of individuals in the communities they serve. As such, it is imperative that local hospitals continue to take the lead in community patient care and avoid being relegated to the position of bystander through managed care or govern- ment mandate. In addition to providing quality patient care, hospitals also have a responsibility to remain financially healthy. And in to- day's environment of uncertain and changing regulation, gov- ernment-mandated penalties, and shifting payment models, hospital leaders are being reminded that financial health and quality patient outcomes go hand-in-hand. Balancing these two responsibilities is an increasingly tough task. Avoidable readmissions are a cost no organization can afford to ignore, and many of America's best healthcare fa- cilities are struggling to find an effective solution to their pa- tients' post-acute needs. For many hospitals and health systems seeking an answer, partnering with an experienced and proven post-acute care provider has been the solution. In a value-based world, the ability to manage the total cost of care — from admittance, through acute care, to the post-acute environment — is a strategic advantage for sustaining organi- zational health and getting patients the right care at the right time, obtaining efficient outcome and attracting and retaining the best and brightest of professional caregivers. But how do executives and hospital leaders find the right part- ner, and how can they determine competence and compati- bility for their needs? William F. "Bud" Barrow II, the recently retired president and CEO of Our Lady of Lourdes Regional Medical Center in La- fayette, La., developed what he calls his "Four-Way Test" for evaluating prospective post-acute care partners. "There are many players in the sub-acute space, and a lot of them are not in it for the right reasons," Mr. Barrow says. "There are many small companies formed not to advance care AND make a profit, but to make a profit and flip the company for even more profit." "It's important to partner with a large capital healthcare pro- vider that has demonstrated long-term commitment to pa- tients, to profitability and to doing the right thing at the right time — every time," adds Mr. Barrow. The four "C's" in Mr. Barrow's test include: • Character: Examine the cultural history of the organiza- tion and the character of key individuals. • Competence: Can they demonstrate long-term, systemic success and expertise in their field? • Capital: Is there a financial model in place that suggests sustainability in a profitable way? • Creativity: Does the organization demonstrate nimble- ness and the ability to rethink and adjust on-the-go based on the uncertainties inherent in healthcare reimburse- ment and the overall healthcare landscape? Once a suitable partner is found, Mr. Barrow further identifies three "must-haves" for forming a successful and sustainable joint venture. • Organization-wide support Support must come from all areas of the organization. Ev- eryone — from board members to medical staff — must un- derstand and support the goal of the enterprise and fully endorse what is a time-consuming process and significant investment. "It's important to partner with a large capital healthcare provider that has demonstrated long-term commitment to patients, to profitability and to doing the right thing at the right time — every time."