Larry Antonucci, MD, president and CEO of Lee Health, is confident privatization is the right path for the health system.
The decision came after more than a year of evaluation — including an independent assessment from advisory firm Kaufman Hall — along with multiple public hearings and town halls, Dr. Antonucci told Becker's.
"I feel very confident that this move will be in the best interest of our community and our citizens," he said.
The system's board of directors voted Oct. 7 to approve its proposed mission agreement. The Lee County Board of County Commissioners must approve it before it is finalized.
The county board will vote Oct. 28. If approved, Fort Myers, Fla.-based Lee Health will convert to a private nonprofit system on Nov. 1, Dr. Antonucci said.
Geographic reach
Lee Health was a private system for its first 50 years and began operating as an independent healthcare district in 1968, created by the Florida Legislature and operated by its own board of directors.
While its current structures restrict the system from operating outside of Lee County, privatization would allow for expansion.
During the assessment, Lee Health learned that 20% of its patients came from outside Lee County, Dr. Antonucci said.
"With the flexibility now, we will actually be able to move care closer to home," he said. "We'll also be able to utilize our service lines in a bigger way and draw in more patients for key service lines of cardiovascular care, cancer and musculoskeletal and build those programs with broader access and higher quality."
Financial benefits
The system has projected that privatization will realize $1 billion more net patient revenue over the next decade.
Looking ahead, Lee Health expects to face a dramatically changing healthcare environment and increased competition from known entities and disruptors, Dr. Antonucci said.
"We want to be able to compete on an even playing field and have the flexibility to be able to do things like joint ventures, partnerships, etc., and operate in our region," he said. "And that will help us secure a solid revenue stream moving forward so that we can fund our safety net mission."
One unusual aspect of Lee Health as a public safety net is it does not have taxing authority, which is unusual for an organization of its size, Dr. Antonucci said.
"We rely strictly on patient revenue and a small amount of philanthropy, so the maintenance of that revenue stream is very important to us," he said.
He cited Tampa (Fla.) General Hospital as an example of a successful conversion to a private nonprofit. The hospital transitioned in the 1990s and "has done an incredible job in the Tampa Bay area, maintaining its safety net status and also growing with the community," he said.
Looking ahead
Dr. Antonucci does not anticipate significant operational changes to the workforce if the county board approves the conversion.
"If the conversion happens on November 1, we will be private, not for profit. People are going to show up to work and take care of patients, and our focus on quality and safety will be unchanged," he said. "This is really a governance issue, and it has to do with the changes that are going to be at the board level."