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Everyone who is part of our ministry is well aware of the incredible changes that we are witnessing in the health care industry throughout the United States. The pace and intensity of change is swifter and stronger than anything we have experienced in our professional lives. There are many environmental trends that keep health care leaders "up at night." Increasing competition with free-standing, investor and physician-owned diagnostic and treatment facilities. The growing cost and complexity of technology and IT infrastructure. The need to constantly improve quality and patient safety. Continuing shortages in the labor supply. Nearly 47 million uninsured Americans. Challenges to our not-for-profit status. Federal and State pressures on Medicare and Medicaid reimbursements. These and other environmental trends are impacting upon the hospital industry as never before. While health care nationally continues to grow in dollar value and as a percentage of GDP (from 8.8% in 1980 to 16.1% in 2007), hospitals' share of the national health care budget has dropped precipitously. In 1980, for every one hundred dollars spent on health care, over $41 of this was spent on hospital services. In 2007, that figure dropped to $29. This ongoing trend promises continuing revenue pressure on hospitals at a time when demands for capital have never been greater, resulting in a "capital gap" situation where uses far exceed available resources. Over the next few years, many hospital industry experts expect a period of prolonged difficulty, characterized by increased revenue uncertainty and cost pressures, reduced access to capital, and a continued erosion of public and political support. Coupled with the ongoing operational challenges of aging physical plants and equipment, and all of the environmental challenges mentioned earlier, there is growing concern for the "health" of our industry and our long-term ability to meet the health care needs of our communities, especially those of our most vulnerable citizens: the poor and underserved. In spite of the storm clouds on the health care horizon, I am energized and optimistic about the future…and you should be too. Leadership at the RHC/JOA and System level, well aware of these evolving market forces, have worked diligently to create a CHE health care delivery model that is designed to meet the challenges of the present and future. Centered on delivering compassionate, holistic, person-centered care to all, our health system will lead in the provision of personal health data and coordinated, integrated care management that will empower persons to participate in managing their care and optimizing their health. The goals and strategies for reaching this desired model by the year 2017 have been developed and communicated throughout our Ministry. In order to help "weather the storm", it is imperative that each RHC do its share at the local level. Each RHC must take aggressive action on its ministry assessment findings, and complete and implement its strategic plan that dovetails with the overall System plan. At the System level, we will continue to assess opportunities for standardization and centralization where there is value to do so. As promised in one of our 2017 growth strategies, we will continue to work with our local organizations, as well as explore new collaborative relationships with others, to pursue growth opportunities and develop innovative services. Mother Theresa once said "I know God will not give me anything I can't handle. I just wish He didn't trust me so much." The times we live in are indeed challenging, and we in the health care industry have been asked to meet incredibly complex and difficult challenges…time and time again. I am confident that, by working together as a System, Catholic Health East will continue to be a transforming, healing presence in the communities we serve.
Sincerely yours,
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