Lower reimbursements, regulatory challenges, and increased competition are among the factors moving Ascension to reduce its “footprint,” according to a new article in Modern Healthcare. CEO Anthony Tersigni told employees that the company would be restructured from its current model as a hospital system “to one that’s focused on outpatient care and telemedicine.” Ascension saw revenues drop 27% last year compared with 2016 (though nonoperating income increased by $1.31 billion). It’s noteworthy that inpatient and emergency room volume fell more than 4% last year—again, perhaps illustrating to leadership that a more nimble operation would be advisable. In a video announcement to Ascension staffers, Tersigni reasoned that the company had to make changes to remain competitive in a “rapidly changing environment” and to “safeguard a sustainable presence in its communities that responds to the changes in how people are accessing care.” High on the list of those changes is a movement toward on-demand healthcare like that found in urgent care centers and other walk-in settings.
Ascension Aims for a Smaller Footprint, Citing Changing Healthcare Landscape