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Health Systems at JPM: Key Themes

For large health systems, key themes from JPM included much of the following:

  • Utilization was bonkers in 2024;
  • Contract labor is down, and we are retaining our clinical labor;
  • Increased focus on investing in digital infrastructure;
  • As demand for ambulatory care grows (and with this demand…new competitive threats), health systems are building out density in their networks to keep patients within the health system flywheel
  • Health system transformation to improve broken consumer experiences and diversify revenue

Sutter Health has made significant progress on its strategic vision, adding 1,700 physicians and clinicians to its footprint in the past 2 years alone, and cutting contract turnover by 42%. Sutter also plans to invest $1B+ in its ambulatory footprint as the hospital model continues to evolve.

Health system JPM 25 breakdown - Hospitalogy

Look at the enhanced focus on ambulatory buildout over the coming years. In total, Sutter has 23 ambulatory and 3 acute sites planned for opening over the next 3 years, which will boost capacity by an estimated 400,000 patients:

Health system JPM 25 breakdown - Hospitalogy

Meanwhile Sutter wants to tie in its ambulatory investments with its tech capabilities. What?? Technological capabilities and health systems…almost an oxymoron! Still, later on in the presentation Sutter claims to have 1.14M active users on its patient portal/platform , up from 1.07M in 2023, used for things like online scheduling. Sutter also noted the importance of digital engagement, and this was a key theme in my recent conversation with Praia Health and Providence – folks who are digitally engaged with your organization are MUCH more likely to use your services and rate their experiences highly.

Health system JPM 25 breakdown - Hospitalogy

Sutter’s utilization numbers are up and to the right: a 6.8% increase in admissions, 6.2% increase in ED visits, 9.2% increase in ambulatory visits, and 9.2% increase in home visits. This growth led to pretty strong topline revenue growth, too – through the first 3 quarters of 2024, Sutter Health grew revenues 17.2%. Operating income bumped up to $200M from $80M, and net income swelled to $1.054B, up 143% from $433M. Their war chest – cash & investments – sits right at $10B as well.

Health system JPM 25 breakdown - Hospitalogy

Providence is redefining itself after a tumultuous few years. In many aspects, Providence is leading the way in health system innovation, partnering and collaborating with other provider organizations on initiatives like Truveta, or spinning off its venture arm Allumia late last year (after forming in 2015). Goes without saying, but Providence also runs several AI-driven initiatives with enterprise scale partners like Nuance:

Health system JPM 25 breakdown - Hospitalogy

Providence’s presentation held a heavy focus on clinical transformation and revenue / income diversification. Meanwhile, solid utilization across the board…

Health system JPM 25 breakdown - Hospitalogy

Has led to financial stabilization and recovery in 2024:

Health system JPM 25 breakdown - Hospitalogy

Past 2025, Providence will look to finally go back on offense as its acute care footprint and inpatient market positioning :

Health system JPM 25 breakdown - Hospitalogy

I covered some of CommonSpirit’s strategic vision late last year, but this presentation was a solid update to this report, just 3 months later. CommonSpirit is focused on the grand concept of ‘Systemness’ which really seems like a fancy way of saying ‘centralization.’ For instance, exiting noncore assets, unifying disparate systems, and nationalizing its programs across its assemblage of assets.

Health system JPM 25 breakdown - Hospitalogy

This was a good slide on Commonspirit’s portfolio transformation, and it’s interesting to see the health system call out behavioral health and home health as two points of emphasis for service line diversification (side note that I have an upcoming virtual event with Intermountain and NeuroFlow on scaling behavioral health programs).

Health system JPM 25 breakdown - Hospitalogy
Blake Madden
Blake Madden
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