Salinas (Calif.) Valley Memorial Healthcare System was recommended to merge with a larger healthcare system in the next 12-24 months by consulting firm McKinsey & Co., according to a Californian report.
The healthcare district hired McKinsey to provide "strategic business and financial plans," according to the report.
The McKinsey report suggested SVMH continue cutting costs and pursue an affiliation or partnership with a high-value health system, such as Sacramento-based Sutter Health, San Francisco-based Catholic Healthcare West or Nashville, Tenn.-based HCA, within two years. The report also advised SVMH consider a merger or affiliation with a stand-alone hospital such as Community Hospital of the Monterey (Calif.) Peninsula, Stanford (Calif.) University Medical Center or El Camino Hospital in Mountain View, Calif.
McKinsey said a merger or affiliation may improve the hospital's cash position, reduce labor, supply, administrative and marketing costs and provide access to different medical technologies.
SVMH's board of directors said an affiliation is only one option McKinsey presented. Board President Jim Gattis said SVMH prefers to remain independent, according to the report.
Read the Californian report on Salinas Valley Memorial Healthcare System.
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The healthcare district hired McKinsey to provide "strategic business and financial plans," according to the report.
The McKinsey report suggested SVMH continue cutting costs and pursue an affiliation or partnership with a high-value health system, such as Sacramento-based Sutter Health, San Francisco-based Catholic Healthcare West or Nashville, Tenn.-based HCA, within two years. The report also advised SVMH consider a merger or affiliation with a stand-alone hospital such as Community Hospital of the Monterey (Calif.) Peninsula, Stanford (Calif.) University Medical Center or El Camino Hospital in Mountain View, Calif.
McKinsey said a merger or affiliation may improve the hospital's cash position, reduce labor, supply, administrative and marketing costs and provide access to different medical technologies.
SVMH's board of directors said an affiliation is only one option McKinsey presented. Board President Jim Gattis said SVMH prefers to remain independent, according to the report.
Read the Californian report on Salinas Valley Memorial Healthcare System.
Related Articles on Salinas Valley Memorial Healthcare System:
Hundreds of Salinas Valley Employees Stage Hospital's First-Ever Strike
850 Employees at California's Salinas Valley to Strike June 21 Over Planned Layoffs
California's SVMH Board Member Says Former CEO Sam Downing Earned Retirement Pay