From COO Darryl Elmouchi, M.D.: Guiding principles and next steps
Dear core leaders,
I am writing to follow up on the urgent call to action issued by our President and CEO Erik Wexler. Given the current economic challenges facing health care, we are called to bring greater focus and discipline to our operations. This will ensure our local ministries have the necessary resources to carry out our Mission and deliver high-quality, compassionate care.
Since joining Providence nearly four months ago, it has been an honor to meet many of you. Your dedication to world-class care is truly inspiring. I’ve also heard many stories from you about the challenges created by our capital constraints and how frustrating it can be when CT scanners need replacing or elevators need repair.
That’s why this work is so important. If we can get our operating losses firmly behind us and begin rebuilding our cash reserves, we will have more resources to invest in the front lines of care, including the people, equipment and facilities needed to serve our communities.
How we are organizing
We have quickly organized four workstreams involving stakeholders from across our family of organizations, including local ministries and shared services. These workstreams report to an executive team, including me, CFO Greg Hoffman, Chief Communication and External Affairs Officer Ali Santore and Chief People Officer Greg Till.
The four workstreams are:
- Increased Revenue – Capturing earned revenue through efforts such as vendor rebates, improving payer contracts, reducing denials and slow payment from the insurance companies, and opening more access to surgical and imaging services. This workstream will also focus on expanding access across other key parts of our system.
- Portfolio Management – Carefully looking at our programs and facilities to ensure Mission sustainability. This includes evaluating whether we are the best provider of certain services or if others are better suited to deliver and expand access to care.
- Advocacy – Working to educate state and federal government officials on the impact of key proposals. This also includes bringing practical policy solutions to the table and engaging the public on issues affecting health care.
- Expense Management – Evaluating key areas, such as medical supply standardization, minimizing variation in office supplies, travel expenses, agency use, overtime, leadership structure optimization and other opportunities.
Keeping our Mission front and center
As we respond to the times, we must do so in a way that is aligned with our Mission and values. Toward that end, we have developed guiding principles to serve as a framework for making critical decisions, planning and implementing this work.
Our guiding principles include:
- Mission and values first
- Courage, conviction and spiritual discernment
- Urgency, innovation and collaboration
- Respect and dignity for all
- Commitment to transparency and the common good
- Focus on clinical excellence and future readiness
- Stewardship and resource optimization
Upcoming communications
Though some initiatives will be on a longer timeline, we expect that many of them will be implemented in the second and third quarters of this year. Taking action on discretionary spending is an example of an area that will occur more immediately. We will share our new expectations on discretionary spending in our next communications.
As Erik reinforced in his message, we are committed to clear and open communications and will keep you apprised throughout this process.
- In May and June, I will release regular video updates in Core Leader News featuring discussions with Providence leaders on important aspects of this work.
- On May 8 from noon-12:45 p.m. Pacific time, Erik will host his monthly Leadership Conversations. Sister Sharon Becker, CSJ, and Mary Anne Sladich-Lantz of the Providence St. Joseph Health Sponsors Council will join him to talk about why this work is essential for extending the healing ministry and how our Mission and values will guide the process.
Thank you for your engagement in this important work. We recognize these are not easy changes and that we are on the precipice of a significant organizational shift. But together, we will ensure our Mission is positioned to grow and thrive amid new realities and that we continue delivering the best possible care for everyone in our communities, especially those who are most vulnerable.
Darryl Elmouchi, M.D.
Chief Operating Officer