Just what the title says. Are you structured for success.
Today, your health, it are you structured for success? My name is bill Russell. I'm a former CIO for a 16 hospital system and create, or this week health. Instead of channels dedicated to keeping health, it staff current and engaged. We want to thank our show sponsors who are investing in developing the next generation of health leaders.
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I saw this article in Becker's I believe. Yep. It is. Becker's. And I thought this is really interesting. And the thing that was interesting about me is the structure of it made sense. And so rarely am I excited about a restructuring within healthcare, but this one made a little sense. So let me give you some background on it and I'll give you my, so what towards the end.
So this is mercy out of Chesterfield recently aligned into three divisions. A decision that represents a rapidly growing health system under a crunch. Of industry pressures. I'm pretty sure that sounds familiar to everybody. The health system employed about 250 physicians in the St. Louis area in 2005. Now to employees, more than 1100 physicians in the same region. This created organizational challenges as the health system weathered rising costs and flat rates.
It was time to pivot. Said that, , Jeff. Sarah Mitt. , Sierra mini, whatever C I a R a M I T a Sierra Metta, M D Mercy's president. Of specialty service lines told Becker's within mercy, we felt the pinch and he goes on to talk about it. Last August the systems, senior leadership. Including, , the president of the integrated provider organization, mercy east developed a plan to move the organization into a new direction. Let me just give you the.
The new structure that they have. The first is primary care population, health members of this division. We'll strategize population health. As a whole from senior focus care. To traditional primary care, approximately 47% of the health systems revenue comes from population health or value-based arrangements. By the way, that's a healthy number, 47%.
Of the revenue coming from population and value-based arrangements that we say we're going to move to value-based care. That's a metric. We need to keep an eye on and hopefully continue to grow. , Let's see, it goes on, we carry some level of risk and he talks about that a little bit. , let me tell you why I like that.
Healthcare needs to these creative destruction of their existing model. In order to have that you need to have a division that is focused on the future. And it's not tied to the past. And when you look at. A fee for service. So much of what we do is tied to fee for service and it is not separated out. And the group allowed to really optimize that new model because we're afraid of it cannibalizing the existing business. Now we have to be careful, obviously.
You know, one foot in. , two canoes and you can't go too fast with one or the other with that being said, I still love this model of allowing a division to cannibalize the existing revenue. And we've seen this in big tech over the years, but hardly ever in healthcare. So anyway, I liked that first one. Number two operations hospital and clinic operations were combined into one entity.
Who would've thought that makes sense, but it makes perfect sense. It's so interesting because, , you know, at. I have my house system. These, these two things were separated and because they were separated, we ended up with different technologies, different directions, different data platforms. And it created all sorts of problems. This makes sense.
And hopefully you see the wisdom of having all of operations because operations is operations. Yes. It's a different. , different workflow if you will. But at the end of the day, operations is operations and then finally specialty service lines. The division overseen by Dr. Sarah mid to. We'll be composed of six specialty brand managers.
Not in a marketing sense, but in a mission sense, service lines was the commitment to invest in a structure. New leaders, new experts, utilization of outside service consultants. Aggregation of analysis and data sets to ultimately create from scratch. A bigger division focused on. Who mercy wants to be in the near future to really fulfill all the needs of the patients in each of these specialty areas.
Again, I like this because you know, it doesn't matter if they're performing surgeries in, , in surgery centers or if they're performing them in the hospital. , service line is a service line. And if you, again, The focus of this organizing those service lines. Keep in mind that a majority. Of our revenue and profit comes from this today.
And so optimizing around this makes a lot of sense in order to give you enough runway to transition to the, , primary care or value-based care. And population health model. So anyway, thought I would share this. , model by the way. I mean, same thing can be done in it. If you start to think about things.
And as a CIO, when I read this kind of article, How I would think about it because I wouldn't necessarily have the ability to make this happen within my health system, but I would have the ability to start to plant seeds. Around the organization about a model like this, if it would make sense for our organization.
And as I would look out, I'd have lunch with somebody. I I'd start talking about the article. I started talking about the opportunity that it might represent for us. I start to build a coalition, find some champions for it and then move it forward. And sometimes I'd say. Multi-year process. And that might sound a little inefficient, but that's the world of operating with people. We are.
Fairly inefficient, inefficient. , very few organizations are optimized for action and, , you know, so you just have to plant seeds, watch them grow and nurture them along the way. All right. That's all for today. If you know someone that might benefit from our channel. Please forward them a note. They can subscribe on our website. This we call.com or wherever you listen to podcasts, apple, Google, overcast, Spotify.
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Check them out at this week. health.com/today. Thanks for listening. That's all for now.