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Recognizing the many opportunities to be realized in "systemness", our founding Sponsors and leaders came together nearly ten years ago to form Catholic Health East. Their shared vision was that working together collaboratively would help strengthen their health care ministries, ensure the continuation of Mission, and help ensure the long-term viability of their institutions. Over the years, we have all worked diligently to identify and implement opportunities to deliver value and improve performance at all levels. When it made sense to "do things together", we've done so…to the benefit of everyone. Initiatives such as our Centralized Investment Program, Master Trust Indenture, and Supply Chain, together with insurance and revenue management savings, were responsible for an estimated $114 million in system-wide savings in 2005. Our collaborative efforts and sharing of best practices have yielded outstanding results in advocacy, quality and patient safety, medical ethics, and many other areas. Individual RHCs through the efforts of local Boards and CEO's and their teams have been responsible for a similarly long list of local accomplishments built on the strength of local relationships. While the efforts of everyone working together at the local and system levels have certainly made a difference, we have reached a plateau in terms of harvesting the benefits of systemness. In order to realize the increased savings and efficiencies that are necessary to achieve our shared Mission in an increasingly competitive environment, it is time for all of us to move together to the "next level of systemness." RHC management teams will better be able to focus on those strategic initiatives that can best (or only) be accomplished through local physician, employer, and payor relationships; CHE in turn will provide greatest value by offloading and focusing on standardizing transactional components of RHC performance. In collaboration with our Board, RHC/JOA CEOs and senior CHE management, we have developed a plan that addresses our collective need to work together to improve our operating performance, and enhance quality and service for our patients. The key components of this plan include the integration of local and system finance and information technology functions, the strengthening of quality and patient safety initiatives, an exploration of internal audit and compliance functions, and a further evolution of our supply chain functions and capabilities. These changes were detailed in a memo circulated to RHC/JOA leadership on March 19th. Catholic Health East has come a long way since our original Sponsors came together ten short years ago to strengthen Catholic health care in the eastern United States. However, to be the most effective stewards of the resources entrusted to us, it is incumbent upon leaders throughout CHE to work together to find new and better ways to take advantage of our "systemness." It is part of the natural maturation process that all successful health systems experience. As delineated in CHE's Leadership Vision & Guiding Principles, our shared services management approach requires alignment of vision, goals and accountabilities, as well as clear identification of what functions and services are best provided locally, regionally and/or centrally. The steps being initiated, which are supported by all RHC CEOs, will help insure that several critically important operational areas are better aligned system-wide to produce optimal results for our RHCs, colleagues, patients, residents, and communities for many years to come. I look forward to working together with all of you to be a transforming, healing presence in the communities we serve.
Sincerely yours,
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