Ralph de la Torre, CEO of Massachusetts-based Steward Health Care System, discussed his plans for accountable care organizations in a recent Boston Globe profile.
Mr. de la Torre said Steward, the for-profit parent company of Boston-based Caritas Christi Health Care, plans to drive down healthcare costs by encouraging patients to visit community hospitals for routine care and teaching hospitals for the most complex care. Mr. de la Torre has held discussions with four of Boston's five academic medical centers about creating alliances to offer complex care, according to the report.
Some critics say a "low-cost 'Southwest Airlines' hospital chain" like Caritas Christi may struggle with the ACO model, according to the report, and many in the industry wonder what will happen if the chain is unable to produce the types of profits expected by financiers from New York-based Cerberus Capital Management — the investment firm that owns Steward.
Still, Mr. de la Torre, who says his goal is to "fix healthcare," plans to replicate this Boston model across the country.
Read the Boston Globe profile on Steward Health Care CEO Ralph de la Torre.
Read more about Steward Health Care:
- 20 Hospital Transactions Making Headlines
- 8 Issues Surrounding a For-Profit Company’s Acquisition of Non-Profit Hospitals
- Caritas Christi Parent Asks State for Approval to Acquire Two Hospitals for $21M
Mr. de la Torre said Steward, the for-profit parent company of Boston-based Caritas Christi Health Care, plans to drive down healthcare costs by encouraging patients to visit community hospitals for routine care and teaching hospitals for the most complex care. Mr. de la Torre has held discussions with four of Boston's five academic medical centers about creating alliances to offer complex care, according to the report.
Some critics say a "low-cost 'Southwest Airlines' hospital chain" like Caritas Christi may struggle with the ACO model, according to the report, and many in the industry wonder what will happen if the chain is unable to produce the types of profits expected by financiers from New York-based Cerberus Capital Management — the investment firm that owns Steward.
Still, Mr. de la Torre, who says his goal is to "fix healthcare," plans to replicate this Boston model across the country.
Read the Boston Globe profile on Steward Health Care CEO Ralph de la Torre.
Read more about Steward Health Care:
- 20 Hospital Transactions Making Headlines
- 8 Issues Surrounding a For-Profit Company’s Acquisition of Non-Profit Hospitals
- Caritas Christi Parent Asks State for Approval to Acquire Two Hospitals for $21M