About
Stroudwater provides strategic and operational advisory services to rural and community…
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In 2022, Erika Andersen wrote an insightful Harvard Business Review piece on #managingchange. "Unfortunately," she wrote, "people often get 'stuck'…
In 2022, Erika Andersen wrote an insightful Harvard Business Review piece on #managingchange. "Unfortunately," she wrote, "people often get 'stuck'…
Liked by Jeff Sommer
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Today at the National Rural Health Association RHC & CAH Conferences, Amy Graham and Dr. Ryan Breneman discussed the core concepts of Revenue Cycle…
Today at the National Rural Health Association RHC & CAH Conferences, Amy Graham and Dr. Ryan Breneman discussed the core concepts of Revenue Cycle…
Liked by Jeff Sommer
Experience
Education
Volunteer Experience
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Board Member
Community Dental
Publications
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Board Best Practices for Assessing Strategic Options
The Governance Institute
The strategic and operating challenges facing hospital leaders have grown in complexity and acuity. Missing cues or deferring a critical conversation regarding strategic and operating risks, or the relevance and effectiveness of the organization’s strategic plan and performance to plan, can prove costly. This article discusses steps the board should take to develop, implement, and maintain a strategic plan in order to avoid strategic drift and adverse outcomes.
Other authorsSee publication -
The High Cost of Governance Dysfunction
American Health Lawyers Association Transactions Conference Guide
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Maritime Disasters and Distressed Hospitals: What Every Board Should Know About Assessing Risk
American Health Lawyers Association: 2017 Health Care Transactions Resource Guide
On September 30, 2015, the cargo ship El Faro left port in Jacksonville, Florida, bound for Puerto Rico and aware of Tropical Storm Joaquin and its projected path. The ship’s captain, an experienced seaman, had charted a course that would allow El Faro to reach San Juan while maintaining a safe distance from Joaquin’s destruction. Twenty-six hours after setting sail, battered by the winds and seas created by Category 3 Hurricane Joaquin, El Faro sank off the coast of a Bahamian Island with the…
On September 30, 2015, the cargo ship El Faro left port in Jacksonville, Florida, bound for Puerto Rico and aware of Tropical Storm Joaquin and its projected path. The ship’s captain, an experienced seaman, had charted a course that would allow El Faro to reach San Juan while maintaining a safe distance from Joaquin’s destruction. Twenty-six hours after setting sail, battered by the winds and seas created by Category 3 Hurricane Joaquin, El Faro sank off the coast of a Bahamian Island with the loss of her entire 33-person crew.
With the benefit of advanced weather forecasts, satellite imagery and modern communications, how did a disaster like the El Faro happen?
Across the United States, hospital leadership teams and governing boards are facing their own gathering storm. Since 2010, approximately 190 hospitals across the county have closed. Similarly, and by these authors’ count, approximately 85 hospitals have sought the protection of the U.S. bankruptcy courts since 2011. For a significant subset of the 4,862 community hospitals in the United States, fundamental structural changes in the industry are making closure or bankruptcy a risk that is now visible on the horizon.
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Acknowledging the Possible: When Affiliations Go Bad
AHLA: Transactions Conference Guide
At the outset of exploring strategic options, it is essential to understand that there are no risk-free strategic options for hospitals. Continued independence will subject the organization to ongoing Execution Risk that is likely to grow more acute given payment reductions, the growing prevalence of high deductible health plans, increasing consumerism, value based purchasing and the challenges of population health-based payment that the industry forces. The decision to affiliate is often…
At the outset of exploring strategic options, it is essential to understand that there are no risk-free strategic options for hospitals. Continued independence will subject the organization to ongoing Execution Risk that is likely to grow more acute given payment reductions, the growing prevalence of high deductible health plans, increasing consumerism, value based purchasing and the challenges of population health-based payment that the industry forces. The decision to affiliate is often driven by a desire to reduce stand-alone Execution Risk. However, affiliating introduces Partner Risk. Partner Risk can be mitigated at the outset via three levers: i) selecting a strategically aligned partner via a competitive process (in most instances); ii) designing a structure customized to the organization’s strategic objectives, and; iii) negotiating contractually enforceable terms.
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Strategic Options Analyses: Asking the Tough Questions Before Its Too Late
American Health Lawyers Association
One of the common Regrets we hear from Board members when we perform a strategic options assessment is: "I wish we had started this process two or three years earlier." The organizations where we hear this kind of regret often share certain characteristics:
- A long, proud tradition of success and independence;
- An erosion of the organization's market position and capabilities due to fundamental changes in the local economy, competitive environment and healthcare…One of the common Regrets we hear from Board members when we perform a strategic options assessment is: "I wish we had started this process two or three years earlier." The organizations where we hear this kind of regret often share certain characteristics:
- A long, proud tradition of success and independence;
- An erosion of the organization's market position and capabilities due to fundamental changes in the local economy, competitive environment and healthcare industry, and;
- A growing but belated realization that the future trajectory of the local health system is quite different from what had been widely assumed
The best time to assess strategic options is from a position of relative strength when changing strategic direction is not an imperative. If you have waited until everyone around the board table agrees that the current direction is unsustainable and has failed you have waited too long.
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Analytics for Assessing Partner Fit
Journal of the Healthcare Financial Management Association
Analytics for Assessing Partner Fit
This article addresses one of the crucial questions that influence the success of an affiliation—that of partner risk. The two sets of analyses provide an objective basis on which to evaluate two key elements of partner risk: Are the prospective partner’s actions aligned with the potential affiliate’s objectives? And how well-positioned is the prospective partner to enhance the performance of the partner-seeking organization on critical quality and…Analytics for Assessing Partner Fit
This article addresses one of the crucial questions that influence the success of an affiliation—that of partner risk. The two sets of analyses provide an objective basis on which to evaluate two key elements of partner risk: Are the prospective partner’s actions aligned with the potential affiliate’s objectives? And how well-positioned is the prospective partner to enhance the performance of the partner-seeking organization on critical quality and efficiency metrics?
Other authorsSee publication -
Anatomy of an Affiliation
American Health Lawyers Association
An affiliation is a means by which an organization seeks to achieve its objectives, it is not a goal in and of itself. Determining the right structure and partner for an organization requires significant foundational work. Developing a common factual understanding of an organization’s circumstances including current market position, environmental trends, finances as well as operational, clinical and strategic constraints will help the organization define whether and how to partner.
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Healthcare Financial Management Association: Data Trends
Asset Efficiency: Why it Matters and How to Measure It
Improving asset efficiency means
reducing the assets required to achieve revenue
targets or increasing revenues generated by
deployed assets.
With hospital construction costs of $300+ per
square foot and capital scarce, asset efficiency—
defined as production per unit of assets—should
be a hot button issue for hospital leaders seeking
to improve performance or planning a significant
investment. -
2009 Community Hospital Replacement Study
A comprehensive study of market, facility, operational and financial metrics for 72 community hospitals replaced since 2000.
Other authorsSee publication
Projects
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Marble Falls, TX Greenfield Hospital Project
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Market study to determine the need for a new hospital to serve this community and surrounding areas.
More activity by Jeff
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Abraham Lincoln once said, “In the end, it’s not the years in your life that count. It’s the life in your years.” Last week, I said “farewell” to…
Abraham Lincoln once said, “In the end, it’s not the years in your life that count. It’s the life in your years.” Last week, I said “farewell” to…
Liked by Jeff Sommer
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Our clinical team has a great track record helping rural hospitals retain clinically appropriate cases. This case study sheds light on their…
Our clinical team has a great track record helping rural hospitals retain clinically appropriate cases. This case study sheds light on their…
Shared by Jeff Sommer
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This morning I'm making my final preparations for the Pan-Mass Challenge, loading up the car and will be getting on a bus in Wellesley, Massachusetts…
This morning I'm making my final preparations for the Pan-Mass Challenge, loading up the car and will be getting on a bus in Wellesley, Massachusetts…
Liked by Jeff Sommer
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Swing Beds are an important and often underutilized asset at critical access hospitals. This white paper examines three years of data to highlight…
Swing Beds are an important and often underutilized asset at critical access hospitals. This white paper examines three years of data to highlight…
Shared by Jeff Sommer
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What a tremendous resource for #ruralhealthcare and #hospital leaders. Way to go team! Thanks to Dr. Carla Brock Wilber, DNP, RN, NE-BC, CATC…
What a tremendous resource for #ruralhealthcare and #hospital leaders. Way to go team! Thanks to Dr. Carla Brock Wilber, DNP, RN, NE-BC, CATC…
Shared by Jeff Sommer
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I am excited to be speaking with my colleague Lindsay Corcoran on the benefits of a Chronic Care Management program at the Ohio Rural Health…
I am excited to be speaking with my colleague Lindsay Corcoran on the benefits of a Chronic Care Management program at the Ohio Rural Health…
Liked by Jeff Sommer
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