Although Bob Glenning, president of the financial and digital technology services division and CFO of Edison, N.J.-based Hackensack Meridian Health, plans to retire in just under a month, his passion to ensure long-term success for the health system has not wavered.
From investments in technology, partnerships and expanded care access, Becker's connected with Mr. Glenning to discuss the health system's bold, over $5 billion capital plan and how the system plans to achieve a 5% operating margin goal in 2025.
Editor's note: Responses have been lightly edited for clarity and length.
Question: What do you feel is the largest financial challenge facing the healthcare industry right now? How can we combat it?
Robert Glenning: Healthcare faces a significant challenge in achieving health equity, particularly due to the rising costs of innovative procedures and technology. While these advancements offer improved outcomes, they remain inaccessible to many patients who are uninsured, underinsured or burdened by high-deductible health plans.
The current system, with its proliferation of high-deductible plans, creates a barrier to accessing care. These plans often leave patients with unaffordable out-of-pocket expenses, leading them to avoid seeking necessary treatment. This delay in care not only increases the cost of treatment but also makes positive health outcomes more difficult to achieve.
To address this challenge, the healthcare insurance system requires a major disruption. This disruption should focus on making healthcare more affordable and accessible for all, regardless of their insurance status or financial situation. By removing the financial barriers to care, we can ensure that everyone has the opportunity to receive the treatment they need, leading to better health outcomes and greater health equity.
Q: Does Hackensack Meridian Health have any major partnership or investment plans slated for the rest of 2024 into 2025?
RG: Hackensack Meridian Health is committed to shaping the future of healthcare through strategic partnerships and continued investment. With a comprehensive capital plan exceeding $5 billion over the next five years, we are focused on:
- Expanding ambulatory care: We are increasing access to convenient, high-quality care by expanding our network of outpatient facilities and services.
- Investing in new technology: We are embracing cutting-edge technologies to enhance patient care, improve efficiency, and drive innovation.
- Building strategic partnerships: We are collaborating with leading organizations to deliver comprehensive, coordinated care and advance medical research.
- Growing and renovating inpatient infrastructure: We are investing in our hospitals to ensure they remain state-of-the-art and meet the evolving needs of our communities.
Through these initiatives, Hackensack Meridian Health is dedicated to providing the best possible care to our patients and communities, now and for generations to come.
Q: What advice do you have for hospital and health system financial leaders looking to get their margins up?
RG: Every health system faces unique challenges, and there's no single solution that fits all. I believe in taking a long-term approach to managing finances, focusing on achieving a set operating margin to allow for continued capital upgrades and innovation. This means finding ways to disrupt ourselves, seeking out partnerships that bring value, and asking critical questions about our core values and negotiation points.
Q: What is your target operating margin percentage for Hackensack Meridian Health in fiscal 2025? How do you plan to get there?
RG: Hackensack Meridian Health goal is a 5% operating margin target for fiscal 2025. Building upon the groundwork laid in previous years, the health system plans to achieve this ambitious growth goal through strategic partnerships. By aligning strategies with key partners, Hackensack Meridian Health builds upon its solidified position as the premier destination for high-quality care across a broad spectrum of health services, not only in New Jersey but beyond.
Q: What is one piece of advice you've been given that has helped drive your leadership style?
RG: See things as they are, not as you wish them to be. This realistic perspective is crucial for achieving your organization's ideal. Remember, leadership and followership are two sides of the same coin. You cannot lead without followers, and they will only follow if they feel heard and understood.
Effective leadership requires active listening. Pay close attention to what your team members have to say, and ensure they don't lose sight of your vision and direction.