Summary of Work:
Warbird provided strategic advisory services as our client pursued a significant growth strategy in southeast Florida and explored strategic opportunities for its information systems and back office services. These services not only provided strategic analysis but on the ground assistance in the implementation and operational staffing.
Background:
Our client is a large faith-based healthcare provider in southeast Florida with 13 hospital locations and over $3 billion in revenue and more than 4,000 physicians. Baptist Health enjoyed a strong position in the southeast Florida market as the result of continued growth since it was created in 1990 around a single but very successful hospital. This was the result of the vision of the key executive leadership over the next 20 plus years. At a time of significant operational success this executive team envisioned a future of further consolidation of the healthcare industry, increased standardization of back office services and the role of information systems in the future.
Areas of Focus:
Strategic Acquisition – As part of Baptist growth strategy, solid market relations with other providers and a track record of providing strategic and operational benefit to new provider partners, Baptist, along with the Cleveland Clinic was one of two finalists for the acquisition of Boca Raton Regional Hospital. A significant strategic move in the southeast Florida market. Warbird was asked to:
- Review the balance sheet, market and other factors of the two finalists.
- Determine non-financial factors that would position Baptist as the partner of choice against a strong competitor like the Cleveland Clinic.
- Conclusion – In spite of The Clinics national brand and stronger balance sheet Warbird was able to identify factors that influenced the outcome of the negotiations and resulted in Boca Raton joining the Baptist organization. Those points centered around:
- Balance Sheet – Although The Clinic had a stronger balance sheet, Baptist had a strong balance sheet and rating that positioned it to provide the financial where with all to address the needs of the combined systems in the future.
- Governance – The community role organizational governance was a strength of the Baptist solution providing for greater community guidance into the future of Boca Raton.
- Physicians – The role and interaction with physicians in governance and leadership was a proven strength of Baptist that the acquisitions, by The Clinic in the Florida market did not illustrate.
- Strong Local Presence – Baptist stronger market share provided economies of scale, a strong record of caring for the under-serviced and focus on local philanthropy rather than an entity headquartered half-way across the country.
Back Office Review:
Warbird’s engagement initially focused on the back-office services of Baptist Health from Finance to marketing and Information systems. The focus then expanded in the information systems area to an in-depth review of all IT applications and IT governance. The results significantly reduced the number of applications needed to support Baptist’s ministry but more importantly put in place a governance process that removed the black box around the strategic, capital budgeting and operations of IT.