Why Randy Oostra is calling for a new healthcare model: Episode 3

A conversation with Randy Oostra, former CEO of ProMedica

Over the past several months, Randy Oostra, the former CEO of ProMedica, has joined the Healthcare Insider podcast to call for a new care delivery model. In the final episode, hosted by Modern Healthcare Publisher Fawn Lopez, Oostra shared why addressing climate change is a critical component to transform healthcare delivery, with studies showing the industry accounts for about 8.5% of total U.S. carbon emissions. Oostra also discussed how ProMedica’s ESG strategy is guiding its work in this area. Below is an edited transcript.

Editor’s note: This podcast was recorded just prior to Randy Oostra’s retirement.

Efforts to address climate change fall into the ESG framework, which stands for environment, social and governance. Why must healthcare organizations prioritize efforts to mitigate climate change?

It starts philosophically with the questions: What’s the role of health systems in society? Is it only to take care of people when they walk through their doors? That’s a pivotal discussion for leaders in healthcare to have. It reminds me of the early days of social determinants where healthcare leaders said, “I’m not doing that. I don’t get paid to do it.” Now, they talk about SDOH a lot.

The environment has a very significant impact on health and health inequities. Climate change adds to that mix. To offer context, 75% of carbon emissions in our history have happened over the last 14 years. Health-related deaths among the elderly have gone up about 50% over the last two decades. There are 2.2 billion children across the world, and we see five million deaths annually because of climate change.

When you think about the reasons for health systems to do it, it starts with their mission, and broadening their role in society.

Why should health systems implement an

ESG strategy?

ESG is not going away, whether you like that term or not. Mandated reporting is coming, there’s no doubt about it. And the idea that health systems are going to wait for this to happen (doesn’t make business sense).

Sometimes healthcare leaders become so focused inside their own walls, they haven’t taken a more global view and they haven’t taken a leadership role. People are looking to health systems and their staff to be leaders regarding environmental and social issues. Patients care. Investors care, and regulators care. Each organization must get their arms around it and get mobilized.

How did ProMedica start its journey to address climate change and implement an ESG strategy?

Like most organizations, ProMedica had fits and starts. You have to get the right people in the room who believe in the goal. Early on, ProMedica put together a system committee of people that sing to the choir —the SDOH people, the diversity, equity and inclusion teams, the supply chain leaders and construction team. I was very involved from a leadership standpoint.

ProMedica engaged an outside consultant; identified goals, and embedded it in the organization’s strategy. ProMedica talked about it with its board. Is it perfect? No. Is it directionally better than it’s been? Yes.

How has ProMedica communicated the ESG strategy to employees?

ProMedica talks a lot about social determinants of health, and more recently about ESG. When people join ProMedica, they feel strongly about the organization’s mission.

As ProMedica put together this approach, they’ve really tried to articulate to their employees why they believe strongly in it and why they want to make sure they’re doing the right things for people and society. That really drives the organization. It’s not perfect, but they’ve got an approach, they’ve got some help, they’ve got goals, and they’re vowing to do better every year.

Listen to the full podcast here: ModernHealthcare.com/ProMedicaPodcast3