1. Healthcare Collaboration: Creating Jobs, Improving Healthcare Quality and AccessOperation Action U.P. Annual Meeting , January 29, 2010 Rick Ament, FACHE, President/CEO Bell Hospital Gary Muller, FACHE, President and CEO Marquette General Health System Dennis Smith, President & CEO Upper Peninsula Health Plan and Upper Peninsula Managed Care
2. Healthcare’s Economic Impact:Statewide Healthcare is now the largest single employer in Michigan: 515,700 direct jobs and 278,500 related jobs $36.7 billion a year in wages, salaries and benefits into the economy Healthcare workers and their employers pay about $12 billion annually in taxes
3. Healthcare’s Economic Impact:Upper Peninsula 21,262 Upper Peninsula residents work in direct, indirect and induced healthcare jobs 15,166 direct jobs 6,096 indirect and induced jobs $892 million in total wages, salaries and benefits for these jobs
4. Healthcare’s Economic Impact: Marquette County 7, 163 total jobs 4,961 direct jobs 2,202 indirect and induced jobs $333.3 million in wages, salaries and benefits $276.1 million in direct wages, salaries, benefits $57.3 million in indirect and induced wages, salaries, benefits $101.7 million in taxes
5. Total Direct Economic Impact of the Healthcare Sector in Marquette County: $482.7 million
6. We Can Do Better! Patients leaving Marquette County and the Upper Peninsula for healthcare services Industry calls it “outmigration” About $100 million leaves the U.P. every year Translates to lost jobs, lost tax revenue Traveling for healthcare services is expensive and inconvenient for patients and their families
9. Healthcare Reform: “ACO” Medicare and private payers are moving toward a model called an “Accountable Care Organization” Partnerships of healthcare providers share responsibility for reducing healthcare costs and maintaining or improving quality of care Successful ACOs will be rewarded financially and reinvest those dollars to improve patient care and create jobs In Marquette County and the U.P., we have the components to establish a successful ACO
11. How do we keep patients close to home for their health care? How do we improve quality, efficiency and access? How do we prepare the Upper Peninsula for healthcare reform and the new standards it will bring? How Can We do Better?
12. The Answer Marquette General and Bell Hospital are forming a strategic partnership to create a new healthcare system: Superior Health Partners
13. Superior Health Partners’ Goals Provide the highest quality healthcare, retain more care in the local area and U.P., and thereby support and create more local healthcare jobs Improve access to the medical care and services patients need in Marquette County Create a system that can meet the demands of national healthcare reform. Working together, the partnership will be positioned to meet future standards.
14. Superior Health Partners Superior Health Partners MGH Bell Physician Group EMS For Profit Enterprises Health Plan Service Corp.
Healthcare is much more than your physician or a trip to a hospital. Healthcare is also an economic powerhouse in Michigan, in the U.P and certainly in Marquette County.In 2008, the Partnership for Michigan’s Health released its fourth edition of a report that quantifies the significant economic impact of health care across our state.The study presents an analysis of data compiled by the Minnesota IMPLAN® Group, Inc., and includes data and information from the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor, and the U.S. Census Bureau. The overall economic impact of health care on Michigan’s economy is staggering: Healthcare is Michigan’s largest private-sector employer, providing 515,700 direct jobs and 278,500 related jobs that pump nearly $36.7 billion a year in wages, salaries and benefits into the economy. Healthcare workers and their employers also pay about $12 billion annually in taxes
It’s not surprising that healthcare is a key component of the Upper Peninsula’s economy. 21,262 Upper Peninsula residents work in direct, indirect and induced healthcare jobs15,166 direct jobs6,096 indirect & induced jobs – indirect jobs are the jobs created to support a large employer (for example, a laundry service that cleans the linens for a hospital.- Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers). $892 million in total wages, salaries and benefits for these jobs
In Marquette County, which is home to both Bell Hospital and Marquette General, healthcare has a tremendous local impact.
Obviously the economic impact of healthcare in the U.P. is quite significant.Now we are going to hear how our major healthcare employers and providers of medical care services are going to do even better.
While healthcare provides significant benefits to the U.P., we can do even better.Patients are leaving Marquette County and the Upper Peninsula for health care services. Outmigration = lost patients About $100 million leaves the U.P. each year for Wisconsin, Minnesota and the lower peninsula for health care services.That $100 million takes with it local jobs and tax revenue, which are obviously vital to our local economy.Having to travel long distances for medical care is inconvenient, expensive and hard on patients and their families.
Here is an sample of patients who left the area in 2008 for one specific specialty. This specialty is already provided at hospitals close to home in Marquette County and throughout the Upper Peninsula. Outpatient outmigration 2008 = 5,212 patients
Inpatient outmigration 2008 = 1,061
As healthcare reform unfolds, one certainty is that healthcare costs must be reduced while assuring that high quality is maintained. Medicare and private payers are moving toward a model called an Accountable Care Organization for accomplishing “value based healthcare.” The ACO model relies on partnerships of healthcare providers including physicians, hospitals and others. These partnerships would agree to share responsibility for reducing healthcare costs for a defined population of patients while maintaining or improving quality of care. The ACO model would support and maintain local control of healthcare. Successful ACOs will be positioned to receive more federal dollars, which will be reinvested for technology and other improvements in patient care. One key opportunity is funding for electronic medical records that can transfer with the patient. Another is the potential to retain more care in the region and create more healthcare jobs.Superior Health Partners, in partnership with other hospitals and health providers throughout the region, would have all the components necessary to build an ACO that could serve the entire Upper Peninsula. No single hospital would have sufficient resources to establish an ACO.
Source: Premier, Inc.
We can do better.We can provide the healthcare services and treatments the residents of the U.P. need closer to home.We can create more healthcare jobs.We can improve healthcare quality, access and efficiency.And we can be in the best possible position to comply with healthcare reforms.
The partnership will create a new health care delivery system to benefit all residents of the county and the Upper Peninsula.This is not a merger, and this is not one hospital buying another. Bell and Marquette General will remain independent, but strategically aligned. This is about making two strong hospitals stronger. The boards and senior managers of both hospitals have been discussing the partnership for several months. We have signed a letter of intent to form Superior Health Partners.Our hope is to open for business on July 1 of this year.
The goals are to provide the highest quality healthcare, retain more care in the local area and thereby support and create more local healthcare jobs, while improving access to the medical care and services patients need in Marquette County and across the Upper Peninsula.The partnership will improve the quality and efficiency of healthcare delivered in the local area, and improve collaboration between the two hospitals and the physicians on their medical staffs. By increasing access to medical care in the county, the partnership will create more healthcare jobs and stop the drain on the region’s economy from healthcare dollars and jobs going to other states.Superior Health Partners will also prepare the area’s health care providers to meet new standards coming as part of national health care reform (Accountable Care Organization).
Bell Hospital and Marquette General Hospital will be partners in Superior Health Partners. Other hospitals and health care organizations may join as partners in the future. As you can see, the hospitals remain independent and autonomous. Through the individual resources, talents and services of each member, Superior Health Partners will have the ability to provide the entire spectrum of health care delivery services and specialties, and meet future requirements from national health care reforms (comply with ACO standards).In the next few days, we will be launching a new Web site that provides more information about Superior Health Partners. It is www.superiorhealthpartners.com.
