Salt Lake City-based Intermountain Health is making substantial investments in its healthcare infrastructure.
In late November, the system shared plans for its new 14-story, 737,000-square-foot replacement hospital, St. Vincent Regional Hospital, in Billings, Mont., that is estimated to cost around $900 million. In October, it shared plans for an estimated $1 billion freestanding children's hospital in Las Vegas.
Becker's connected with Intermountain Health CFO Clay Ashdown to gain further insights into the operational, financial and strategic operational considerations that are driving these projects, while also learning how the system aims to expand care access to meet needs of the communities it will serves.
Note: Responses have been lightly edited for length and clarity.
Question: What were the strategic and financial considerations behind Intermountain Health's decision to invest $1 billion in the new Montana hospital campus and $1 billion into the new children's hospital in Las Vegas?
Clay Ashdown: The St. Vincent Regional Hospital project in Billings, Mont., is estimated to cost approximately $900 million. The existing hospital has served Billings and the surrounding areas for generations and is in need of replacement. The modern replacement hospital will provide an enhanced patient experience and will position Intermountain to serve Montana for decades to come.
The planned children’s hospital in Las Vegas will meet the large and growing pediatric needs of the region. Intermountain will build upon our legacy of providing exceptional pediatric care in Utah and the Intermountain region to open Nevada’s first freestanding pediatric hospital.
Q: How do these investments align with Intermountain Health's broader vision for expanding access to care and meeting community needs in these regions?
CA: The St. Vincent Regional Hospital project is a continuation of a long legacy of expert care that has been in place for more than 100 years. The new facility will enable additional innovative care models and expanded services to a growing population. It demonstrates Intermountain’s long-standing commitment to allow Montana and nearby residents to receive extraordinary care close to home.
The children’s hospital in Nevada will allow children and families to receive the highest quality pediatric care in a dedicated children’s hospital without having to travel to surrounding states.
Q: What challenges has Intermountain faced in financing and executing two simultaneous billion-dollar projects, and how have you navigated those complexities as CFO?
CA: Intermountain has a rigorous and disciplined process to guide our capital deployment decisions. We plan several years in advance to identify priorities and manage our resources accordingly. We also borrow prudently to manage our reserves and promote long-term sustainability.
Q: How does Intermountain plan to measure the success and ROI of these significant investments over the next five to ten years?
CA: The most important return on investment is the service and quality provided in our communities. From a financial business case perspective, we perform extensive modeling to ensure that the projects can cover the associated expenses and capital investment. Once the projects are operational, we will routinely measure performance against the projections and conduct an extensive retrospective analysis once the facilities have been in operation for two to three years.