Ascension eliminates exec positions amid restructuring
- Ascension, the nation's largest nonprofit hospital operator, eliminated three executive positions in an attempt to create a "flatter" organization, the company's CEO Anthony Tersigni said in a statement Tuesday.
- Part of the restructuring includes erasing the line between its healthcare and solutions divisions. Many of Ascension's subsidiaries were organized under the solutions division while its healthcare delivery arm operated under its own umbrella. The realignment, effective immediately, is meant to eliminate silos and improve efficiencies, according to the statement.
- Effective July 1, Ascension will eliminate three executive positions: CEO of the healthcare division, CEO of Ascension Holdings and Ascension's chief clinical officer. Pat Maryland, John Doyle and David Pryor held those roles, respectively. Joseph Impicciche will take on the newly created role of chief operating officer. Impicciche currently serves as general counsel.
The reorganization comes as Ascension moves in a new strategic direction, shifting its focus from inpatient care on its 151 hospital campuses to improving the overall health of its communities through quick and easy access points.
The industry has seen a decline in inpatient admissions over time as more care is delivered outside the walls of a traditional hospital. The system reported declines in key inpatient categories during the first quarter of fiscal year 2019 while noting an uptick in outpatient services. Outpatient services now represents 53% of the system's overall patient revenue, another illustration of the shift from inpatient to outpatient.
At the same time, non-traditional vendors are threatening to shake up the status quo and siphoning patients away from traditional players like Ascension by providing care faster and cheaper at retail locations.
But Ascension's new strategic direction came with eliminating positions and cutting millions in costs from its budget. The nonprofit has also faced pushback in D.C. for announcing plans to essentially close its 283-bed hospital. Only limited services will remain as it pivots away from acute care services to population health. After a backlash, Ascension agreed to leave the ER open until April.
The system's income from operations increased dramatically from $11.5 million during the prior-year period to $36.4 million for the most recent quarter ended Sept. 30.