The 93-hospital system is investing heavily in outpatient facilities — including ambulatory surgery centers, urgent care facilities, and imaging and infusion centers — rather than prioritizing large-scale acquisitions.
“Over the next 12 months, we are laser-focused on organic, physician- and surgeon-driven growth,” Daniel Isacksen Jr., executive vice president and CFO of Trinity Health, said during an upcoming episode of the Becker’s CFO and Revenue Cycle Podcast. “While we will always consider opportunities to grow through acquisitions, most of our growth will come from our community division.”
The health system’s community division, led by Daniel Roth, MD, chief clinical and community division operations officer, is focused on expanding outpatient care. This includes urgent care, medical groups, freestanding ambulatory services and the PACE program, a comprehensive, community-based program that helps older adults receive personalized care at home.
“One of the most significant trends is the shift of care and resources into the ambulatory setting. While this shift has been going on for a long time, what’s notable now is the substantial allocation of capital and assets in this space,” Mr. Isacksen said. “We’re seeing major investments in comprehensive ambulatory centers, medical group facilities, ambulatory surgery centers, retail imaging and infusion centers. These changes are significantly influencing capital investment strategies and will continue to do so.”
Mr. Isacksen said the key to success in this area is developing expertise and aligning cost structures with the segment’s revenue base.
“Ambulatory care facilities aren’t hospitals; they need to be managed, operated and supported differently,” he said.
Trinity has previously partnered with ASCs and imaging centers but is now concentrating on building and managing these services internally. The system has been recruiting expertise for these areas and is intensifying its focus on developing internal programs to better serve its communities.
“You have to view where healthcare is going outside of an acute care lens,” Trinity Health President and CEO Mike Slubowski told Becker’s in a September interview. “Those structures can get in the way of strategy. If you’re structured around the hospital being the center of the universe, it’s hard to get people, processes, technology and culture pointed in a new direction.”
Beyond expansion, Trinity Health’s organic growth will also counterbalance rising operational costs and inflationary pressures by expanding clinical programs and strengthening care coordination, according to Mr. Isacksen. Targeted service line growth spans the entire continuum of care, with a strong emphasis on primary care as a feeder for specialty and surgical services.