Bellingham Business Journal, March 01, 2013

Page 1

Year 21 No. 3 $1

MARCH 2013

A HEALTHY BREW | PAGE 6

KOMBUCHA TOWN BREWERY OPENS, NOW SELLS DIRECT TO CUSTOMERS

VALUE OVER VOLUME

PeaceHealth St. Joseph expands as the health care industry faces broader changes By Evan Marczynski evan@bbjtoday.com

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arge medical centers have slogged for years under inefficient, costly business models that health care experts say are no longer sustainable. So it follows that as American hospitals ready for a new world created through federal health care reform, cost-cutting measures are not just seen as means for improvement—many times, they are modes for survival. At the PeaceHealth St. Joseph Medical Center in Bellingham, such shifts are underway on multiple fronts. Among the more visible changes are recent expansions that will put St. Joseph in a better position to leverage its skill and scale, according to leaders of the nonprofit, faith-based care provider. A new integrated Cancer Center opened last December at the hospital’s main campus in Bellingham. Prior to that facility’s opening, St. Joseph announced a collaboration with a public hospital district in San Juan County to open a new 10-bed critical-access hospital in Friday Harbor. The medical center is also hammering out details in a new affiliation with Public Hospital District 304 in Skagit County, which will have St. Joseph lease and operate United General Hospital in Sedro-Woolley beginning in July. The hospital will then be called the PeaceHealth United General Medical Center. Below the surface at St. Joseph, practitioners prepare for a new era where they will be rewarded based on how effectively they treat patients, and not by the sheer amount of treatment they

NEW MAJOR PROJECT IN SIGHT AT BARKLEY VILLAGE $15.6M Cornerstone Building will add office, retail and apartment units By Evan Marczynski evan@bbjtoday.com

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(Above) St. Joseph’s new integrated Cancer Center. (Right) RNs Dana Weatherby, left, and Lorene Rotz, demonstrate how an IV is prepared before an infusion. (ABOVE) EDYE COLELLO-MORTON PHOTO | COURTESY OF PEACEHEALTH (RIGHT) EVAN MARCZYNSKI PHOTO

provide. This shift will take financial incentives for doctors out of the traditional “fee-for-service” care model. “Today we’re in a business model that rewards volume, in the future we’ll be in a business model that rewards value,” said Nancy Steiger, CEO and chief mission officer of St. Joseph Med-

ical Center. (Steiger also leads the PeaceHealth Northwest Network, which includes the hospital in Bellingham, the two new affiliates in San Juan and Skagit counties, as well as the Ketchikan Medical Center in Alaska.) All of this happens as the entire PeaceHealth organization, which operates hospitals and care facili-

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ties in Washington, Oregon and Alaska, moves forward with a planned joint venture with Catholic Health Initiatives, a nationwide care provider based in Colorado. The partnership is on track to officially begin July 1, according to spokespeople from both organizations. It will create an entirely new health care system, combining PeaceHealth’s facilities and operations with CHI hospitals and care facilities in Washington and Oregon. CHI is probably best known locally as the operator of the Franciscan Health System in Tacoma. When the partnership was announced last August, Peace-

n the past half-decade, success stories of large construction projects have been hard to find. Unless one is talking about Bellingham’s Barkley Village. Some examples: the Drake Building, a five-story, 50,000-square-foot residential and commercial complex completed in October 2007. The Laurel Building, home of Scotty Browns Restaurant, was finished in 2008. A building at 1835 Barkley Blvd., which added more than 23,000 square feet of office space to the district, opened in 2009. And of course, the Regal Cinemas Barkley Village Stadium 16 movie theater, which held its grand opening last December. Having held its own during the shakeup of recession, Barkley Village has become an epicenter of

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