St. Vincent’s Chief Discusses Changing Health Care Landscape

CHI St. Vincent’s Health CEO Peter Banko has been busy lately.

His hospital and its parent company, Catholic Health Initiatives (CHI), have acquired a Hot Springs hospital, engaged in strategic affiliation talks with a Conway hospital, bought a remaining stake in insurance provider QualChoice, and been grappling with state and federal health care reform.

“I don’t like sitting on my hands,” said Banko, who appeared on this week’s edition of Talk Business & Politics which airs Sundays at 9 a.m. on KATV Ch. 7.

Banko said growing a regional footprint in high-traffic corridors was one driver for the Mercy Hot Springs deal. Talks with Conway Regional Hospital are another example of expanding his health care network in surging population centers. He said there are potential limited opportunities to the east of Little Rock.

“The growth corridors in this area are down I-30, Benton/Bryant, and then Conway to Russellville, and then probably up to Searcy. Down to Pine Bluff. You’ll probably see more activity in those areas. Maybe not going as far east,” Banko said of future plans.

He also discussed data he’s seeing in his health system related to the federal health care law as well as the state’s Private Option and Payment Improvement Initiative, which seeks to create episodic health care treatment in an effort to bend cost curves.  Gov. Mike Beebe launched the Payment Improvement Initiative to move state health care reimbursements away from a fee-for-service model to a bundled services model.

“I think Gov. Beebe’s trials in bundled payment and the medical home are definitely working,” said Banko. He noted that a hip and knee replacement trial that his group has been participating in is seeing real success.

“We’re seeing large reductions in cost. Our physicians along with the hospital in hip and knee replacement have really gotten together and looked at better quality, reducing infection rates, how to provide lower costs,” he said. “I think it’s really better coordinated care and improved care and we’re seeing reduced costs at St. Vincent because of it.”

Last month, four hospital executives testified before state lawmakers on preliminary data they’re seeing as the Private Option and other reforms are being implemented. Early results from an Arkansas Hospital Association survey indicated:

• The total number of emergency room visits in 42 hospitals surveyed declined 2% on average in the first three months of 2014 vs. the same time period in 2013;
• The number of uninsured patients in those hospitals emergency room visits is down 24%; and
• For those requiring hospital stays, there has been a 30% reduction in the number of uninsured patients.

Banko said his data mirrors and differs those results.

“We’re definitely seeing more people access our primary care physicians in our network. We’re seeing rapid growth in our emergency department visits as well,” said Banko.

He described the ER growth as “hockey stick, exponential” growth.

“We had been flat at St. Vincent for awhile. Now, we’re seeing month-to-month huge increases,” he said.

St. Vincent’s is embarking on a new rebranding campaign as it affiliates more closely with its parent company, Catholic Health Initiatives (CHI). CHI St. Vincent’s has launched a new web site, which you can view here.

You can watch Banko’s full interview below.