New outpatient spaces like this repurposed industrial building have lowered costs.
Photo courtesy of Campanelli
Real estate, technology and an ACO help system save big
When Cerebus Capital Management formed Steward Health Care in 2010 to acquire six hospitals that were part of Caritas Christi Health Care, four of the facilities were suffering significant losses.
Although Boston-based Steward faced financial difficulties, it has invested more than $850 million into facilities, technology and physician acquisitions.
System officials now say that Steward might be turning the corner, as just two of its hospitals lost money in 2014 and the financials are improving in 2015.
The strategy, they say, has been to increase the number of services offered in lower-cost settings, such as urgent care facilities and doctors’ offices. Today, the network includes 3,000 physicians, 30 affiliated urgent care providers, six ambulatory surgery centers, home care, hospice and other services.
Steward officials also credit the system’s participation in the Medicare Pioneer Accountable Care Organization (ACO) program with saving plenty of money, as the system reports $30 million of savings in its first three years in the program.
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