Remaining Independent

With health system consolidation setting new records, some analysts have been predicting the demise of the independent community hospital. For their part, leaders of independent hospitals wonder if they must join a large system to remain in business.

Sg2 believes not every independent hospital or health system needs to be part of a larger system to be successful in the future. Local market dynamics and the diverse mechanisms through which hospitals can gain much-needed scale leave room for a broad range of organizations, including independents. But whether to remain autonomous or join forces with another system is one of the most significant judgments hospital executives will make. A closer look at 11 variables can help leaders steer their organizations through these difficult decisions. Three are listed below:

  • Clinician Alignment and Network Integrity: Creating robust patient channels is key to long-term success, and clinical alignment is vital in this endeavor.
  • Scale, Reach and Partnerships: Sg2 believes an organization’s footprint, access points and channel management—especially relative to competitors in the market—matter more than an arbitrary revenue target.
  • Adequate Workforce: The ability to recruit and retain physicians, nurses, advanced practitioners, technicians and other key staff will make or break many independent organizations.

For more details, as well as 8 more variables, read the Sg2 report Remaining Independent. Not an Sg2 member? Contact us to learn more about successful scenarios for independent community hospitals that don’t involve giving up autonomy.

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