Yet, even with the tight reimbursement reality, Montefiore is not only holding its own, it is finding ways to grow.
"We've nonetheless managed to stay in the black and generate modest operating margins and do well enough that we can continue to reinvest in ourselves," Perlman says.
Executing a Growth Strategy
Part of that investment strategy has involved the acquisition of three regional hospitals over the past few years, which has helped Montefiore grow into a $4 billion system with 2,000 beds throughout six hospital campuses.
"We also have an ambulatory network that is one of the largest in the country," Perlman says. "Between primary care, specialty care, home health and related activities, we have about 100,000 admissions a year and 3.5 million patient visits a year."
Additionally, the acquisitions have broadened the system's service area to include the more affluent Westchester County, Perlman adds. "We are still Bronx-centric with about 80% of our business in the Bronx, but we are becoming increasingly relevant to healthcare in Westchester County just north of the Bronx."
The acquisitions are not only good for Montefiore—which is the university hospital for the Albert Einstein College of Medicine—but for its community, as well, Perlman says.