YRMC explores partnership options
Part of growth process, planning for future
Health care is evolving, and Yuma Regional Medical Center is looking into the future trying to decide what kind of hospital it should be.
As part of a strategic plan for future growth, the YRMC Board of Directors have decided to explore partnership options.
Dr. Robert “Bob” Trenschel, president and chief executive officer, said about seven months ago hospital officials started asking themselves what they wanted the hospital to look like in the future. Did they want it to grow? Stay the same? Just be a hospital or more?
“Growth doesn’t necessarily mean more buildings,” Larry Deason, board chairman, said, noting it could be growth in geographical area or network, for example.
However, hospital officials were sure about one thing. With the health care landscape changing, the hospital needs to plan and take control of the future.
The 406-bed, not-for-profit hospital is currently in a good position to do so. In an industry where a 3 percent profit margin is good, YRMC reported a margin of 4 percent last year and anticipates a 4.1 percent margin this year.
“We’re strong financially now. That’s a key factor,” Trenschel said. “We’re not doing this from a position of weakness. We’re doing it from a position of strength.”
He credited lean management and employees for achieving this. If a position became vacant, it wasn’t automatically filled. Instead, staff worked “smarter.”
“To address the growing healthcare needs in our community, last year we asked everyone at YRMC to take exceptional focus and accountability for improving quality, service and efficiency. The way the people of this hospital responded was exemplar,” Trenschel said.
On the other hand, the hospital is grappling with changes to the way healthcare is paid for. For example, government payers such as Medicare are
becoming responsible for an ever-growing portion of patients. With the government insurance paying 60 cents on the dollar, the hospital takes a 40 percent loss.
In addition, more hospitals are transitioning from fee-for-service to a valuebased care payment model. With value-based care, insurance and government plans pay hospitals for helping to “keep people healthy and improving the health of those who have chronic conditions in an evidencebased, cost-effective way,” as Aetna.com explains.
YRMC has already looked at expansion opportunities in Parker, El Centro, Calif., and Mexico, where 30 percent of Yuma County residents go for healthcare.
The hospital has also weighed whether it should set up its own insurance program, as other hospitals are doing, and sell it to employers and the agriculture community.
However, Trenschel noted, “We don’t have the expertise to put that in place.”
For that reason, YRMC has hired a national healthcare consultant, Juniper Advisory, to help YRMC explore and evaluate all possible options for its future. One of those options is growth through partnerships.
“As the only full-service hospital for 180 miles and the area’s largest non-government employer, YRMC has a unique and vital role in our community,” Trenschel said. “Our goal through this process is to determine whether a potential partnership would allow us to create a better experience for our patients, increase the quality of our care, improve the overall health of the communities we serve and reduce healthcare costs for patients and local employers.”
Juniper Advisory will assist the YRMC board and leadership determine whether a partnership with one or more healthcare organizations is in the best interest of the greater Yuma community and, if so, what organizations would make the best partners and what partnership arrangements would be best for Yuma.
The board has developed three key focus areas for evaluating possible partnerships: 1) a commitment to the community; 2) strengthening and expanding services; and 3) investing in a long-term future.
The hospital currently has affiliations with Mayo Clinic and PrimeCare Urgent Care Centers, but these are not partnerships. An an affiliate, Mayor offers support and expertise to YRMC and allows the hospital to participate in cancer protocols. YRMC also is part owner of Yuma Rehab Hospital.
When the board first started having this conversation, Deason’s gut reaction was, “No, I’m not interested. It feels like giving up local control.” However, as he thought about it he realized that “it is our duty as a board to deliver on our longstanding commitment to do what’s best for this community.
“I was born in Yuma and know that the families here look to this hospital to make informed and thoughtful decisions for the future of our community’s health and wellbeing. While we are proud of the strength of our hospital today, both clinically and financially, the local leaders on this board share my conviction that there is more we can do to secure our ability to deliver timely access to high-quality, costeffective care for generations to come.”
Whichever direction the hospital takes, Trenschel wants to ensure two things: all employees must be retained and professional opportunities should be available to them.
Nevertheless, Trenschel acknowledged that this process might not lead anywhere “Everyone wants to know what’s the end of it? I don’t know. No decision has been made other than to explore,” he said.
The reason YRMC announced the plan is to “stop the rumor mill” and “get the right information out.” As Juniper starts making phone calls, rumors might start spreading, and YRMC leaders want to be proactive in setting the record straight. No, the hospital is not being sold. No, it’s being taken over by another organization.
There’s also no timeline set; the process can go as fast or slow as the board wants. It could be as short as three months or as long as three years. “It depends on what’s out there,” Trenschel said.
“(The hospital’s) strong position allows the board the time to undertake this process thoughtfully and to focus on the areas that we believe will build the best future possible for the patients of YRMC and the Yuma community,” Deason said.
“We want to choose our partner. We want to be in the driver’s seat and do it for the community for all the right reasons, what’s right for the community, not because we’re drowning and we need someone to throw us a lifejacket,” said Machele Headington, vice president of marketing and support services.
“It’s exciting. All parents want the best health care for their kids. I want my granddaughter to have great healthcare. We can’t stay stagnant,” she added.
YRMC has said it is committed to being transparent and providing updates during this process. A special website — www.YumaRegionalForward.org — has been developed to deliver information and ongoing updates.