The University of Alabama at Birmingham Health System's acquisition of five hospitals on Nov. 1 was driven by an increasing demand for care, CEO Dawn Bulgarella said.
The $450 million acquisition of Ascension St. Vincent's Health System, which included 19 ambulatory care locations, aimed to address access challenges for inpatient and ambulatory services, Ms. Bulgarella told Becker's.
"We are the eighth-largest hospital in the country, and yet our average occupancy is at 94%," she said.
The system identified a need for more locations, beds, operating rooms and emergency departments and found that Ascension St. Vincent's hospitals were a good fit in terms of mission and culture, she added.
UAB Health will also begin planning a transition to an Epic EHR system across its newly acquired and existing facilities, which is about a $380 million investment, Ms. Bulgarella said.
Ms. Bulgarella highlighted the rising demand for services from an aging population with a higher prevalence of chronic diseases as one of the biggest financial challenges facing hospitals and health systems in 2025. This is on top of other financial pressures, including increased cost for supplies, labor and telehealth, as well as regulatory challenges, she said.
Improving access for aging populations is crucial to preventing declines in health, unnecessary emergency room visits and inpatient admissions, she added.
"We're enhancing the number of primary care providers and getting further out into the communities and increasing access for telehealth services," Ms. Bulgarella said.
UAB Health offers telehealth services in every clinical subspeciality and supports rural Alabama intensive care units via tele-ICU services, with two hospitals operating exclusively with tele-ICU providers to keep their units open.
Employee engagement is also a critical focus in addressing the growing need for care, with technological investments supporting this effort, Ms. Bulgarella said. The system pairs new nurses with more seasoned nurses, both in person and virtually.
"It is important that they have the support of nurses who have been there a longer period of time," she said. "Oftentimes, it is just giving them the comfort and security that they know what to do."