Yale New Haven Health Partners with Tenet Healthcare in CT

John Commins, for HealthLeaders Media , March 7, 2014

Tenet Vice Chairman Keith Pitts said the agreement "capitalizes on the respective strengths of both organizations and will enhance the clinical care and the access to that care in the communities we serve. The partnership will bring improved clinical technologies, increased economies of scale, and capital resources to the hospitals, ambulatory care centers and physician practices that we will become affiliated with in the future."

Borgstrom says Yale New Haven "brings to the table a strong brand that brand reflects a commitment to a whole array of healthcare services including tertiary care services, medical education, and opportunities to work with physicians in different ways because we have a large and robust group of physicians not only on the fulltime faculty but in the community."

"Clearly what Tenet brings to the table is much deeper experience in integrating and enhancing community-based healthcare and these are hospitals that were in search of a variety of things from capital to certain kinds of transformational management experience," Borgstrom said.

"Tenet has great experience there. Together we can also build off of some experience with Vanguard and Tenet have in understanding what it means to take insurance risk and how to make that productive for all parties. But fundamentally, this is about preserving access to patient care, enhancing that access, and providing the right kinds of care in these communities."

John Commins is a senior editor with HealthLeaders Media.

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2 comments on "Yale New Haven Health Partners with Tenet Healthcare in CT"

Robert Sigmond (3/8/2014 at 8:03 PM)
I suggest that Tenet take over the entire billing and collection function and staffs of these hospitals and pay each of them a single monthly check, based on the annual budgeted operating income from all sources. Thr annual budget would be developed collaboratively, and based on a collaborative long range reform plan. This would be a dream com true for the CEO's of the hospitals: [1] no more concerns about operating deficits, [2] no more involvement at all with the negative incentives of payment by fees for service, [3] no more direct involvement with unpleasant paying patients and third party payers, and [4] the opportunity to collaborate with an organization that has a lot more experience in internal and external collaboration to shift from volume to value and actually reduce operating expenses. For Tenet, it [INVALID]s a new service that it will be able to carry out more effectively than its individual hospitals and avoids paying the individual hospitals for contracting with collection agencies which often may not reflect the best interests of Tenet in the marketplace. Of course, a great many details have to be worked out and incorporated in the contract between Tenet and each hospital. Most important, there must be agreement about how to divide up any money that reflects either positive or negative differences between budgeted and actual net income at the end of the year. That works best if there is also continuous monthly collaboration in reviewing and making adaptations in the annual budget. For more information about this exciting idea, I'd love to hear from you ....by e-mail or telephone: 215-561-5730 Regards, Bob

bob sigmond (3/7/2014 at 9:08 PM)
For real benefit to the collaborating corporations as well as the general public, I suggest that Tenet take over Vanguards' complete rate setting, billing and collection functions and the staff responsible for that work, and pay each Vanguard-related organization a single monthly check, based on the budgeted income in a collaborative budget, based on a collaborative long range strategic plan. With this arrangement, the Vanguard-related organizations will no longer be involved in any way with fees-for-service and with concerns about operating deficits, and with involvement with other third part payers as well as with difficult self-paying patients. For the Vanguard organizations, truly a dream come true. For Tenet, a new function that will be key as marketplace provider competition becomes ever less important in the Obamacare years ahead. The real marketplace competition will center on premiums, not hospital charges. With Tenet managing the collection processes, Tenet will no longer have to pay anything for this function, and should also save a lot of money with a more effective process that focuses on getting more and more income from premiums with much more rational fees-for-services. Most important, all the adverse incentives associated with providers being paid by fee-for-service are gone forever. Eventually expanding this approach to all of its hospitals, Tenet can overshadow all other third party payers with respect to quality and access as well as lower expenditures. Of course many details have to be worked out in advance and incorporated into the Tenet/Vanguard contracts. Most important, there has to be agreement on how to divide up any positive and negative differences between budgeted net income and actual net income. This will work best if there is also close collaboration between the two parties in monthly monitoring of budget conformance. For more information about this approach, contact me at 215-561-5730. Regards, Bob Sigmond




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