Scott Kizer President 1776 WestLakes Pkwy WestDes Moines, Iowa 50266 Scott.Kizer@unitypoint.org
July 11, 2023
From: Scott Kizer, UnityPoint Health President Clay Holderman, UnityPoint Health CEO
RE: Important Restructure Updates: UPH Leadership Announcements
Today, we are reaching out to share important leadership updates related to our organizational restructure efforts. As you know, we are on an intentional path to create a more sustainable future, so we can ensure that UnityPoint Health can deliver on its mission for years to come. Part of this work includes leadership changes, which are outlined in this memo across several areas: our UnityPoint Health senior leadership team, Division and Market leadership within our new operating structure, and the anticipated leadership team for our new company in partnership with Presbyterian Healthcare Services. All leadership changes will include thoughtful transitions with effective dates later this summer.
UnityPoint Health Senior Team (see below organizational chart)
Last month, we announced Scott Kizer as the next President of UnityPoint Health, due to Clay Holderman’s transition to serve as President for the new company with Presbyterian Healthcare Services. Scott will lead UPH in partnership with his senior team, which will be focused on clinical and operational excellence as well as team member and provider engagement. Scott and his team also remain committed to finding opportunities to strengthen our culture of belonging through the lens of our brand promise and FOCUS Values. This team includes the addition of two new Division Chief Operating Officers, who will serve as strategic, operationally focused team-builders, driving quality, patient experience, market share and financial performance. Within and across our divisions, they will lead collaborative efforts to coordinate care delivery, improve quality and strengthen access to care, as well reduce duplication and expense, to benefit the communities we serve.
The following roles will serve as Officers on the UPH senior team, effective July 30.
• DivisionChief Operating Officers (COO)
o West Division Chief Operating Officer: Pamela Delagardelle, RN, MSN, has accepted the role of Chief Operating Officer for our West Division, which includes Des Moines, Fort Dodge, and Sioux City. Pam joined UnityPoint Health in 2000 and has served in a variety of leadership roles including President and CEO of UnityPoint Health – Waterloo for the past ten years, President and CEO of Grundy County Memorial Hospital from 2003 to 2013, and Interim Chief Nurse Executive for the enterprise from 2021 to 2022. With over 40 years of healthcare experience, Pam has expertise in leading strategic growth initiatives, improving patient satisfaction and employee engagement, and driving clinical and operational improvements.
o East Division Chief Operating Officer: Michelle Niermann, MHA, FACHE, has accepted the role of Chief Operating Officer for our East Division, which includes Cedar Rapids, Waterloo, Dubuque, Quad Cities and Madison. As a leader with more than 25 years of experience, Michelle brings expertise in healthcare system operations, strategic planning, and organizational development. Before being named President and CEO for UnityPoint Health –
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Cedar Rapids in 2019, Michelle served as Executive Vice President & Chief Operating Officer with responsibility for all major clinical, professional and support services.
• Chief Nursing Officer (CNO)
o Sarah Brown, MSN, RN, CMPE, NEA-BC, has accepted the role of Chief Nursing Officer for UnityPoint Health. Sarah most recently served as the Chief Nursing Executive for Waterloo and held additional executive roles over the past eight years. She brings 16 years of experience that began as an ICU registered nurse at Allen Hospital and led to continuous nursing, medical practice and operational leadership positions, including the opportunity to lead design for our RESPECT Huddle implementation and Care Delivery enterprise initiatives as part of our Onward strategy.
• Chief Financial Officer (CFO)
o Mike Heinrich, CPA, MBA, has accepted the role of Chief Financial Officer for UnityPoint Health. He has been with the organization since 2017 and most recently held the role of Interim Senior Vice President, Finance. Prior to that, Mike served Cedar Rapids as Executive Vice President and CFO for six years. He brings more than 30 years of expertise in healthcare finance and public accounting, including experience as Interim CEO and Executive Vice President and CFO of Mercy Iowa City.
• Chief Medical Officer (CMO)
o This will be an open leadership position on Scott’s senior team, and we intend to launch an immediate internal and external search. In the meantime, Dr. Dave Williams will continue to serve as Interim CMO for UnityPoint Health, and at the close of our transaction with Presbyterian, he will transition into a clinical leadership role for the new company.
• Chief Ambulatory Officer (CAO)
o This will be a new, open leadership position on Scott’s senior team, and we intend to launch an immediate internal and external search. As healthcare is evolving, more care is provided outside of the hospital setting. The CAO role will focus on elevating our ambulatory strategy and growth initiatives for UnityPoint Health, and work in close partnership with UnityPoint Clinic and UnityPoint at Home to enhance these services and offerings.
UnityPoint Health: Market Presidents (see below organizational chart)
Our Market Presidents will be responsible for the effective management of operations within each Market (formerly known as “regions”) to ensure we achieve financial, operational, and quality metrics. These leaders will be responsible for building and maintaining strong relationships with key stakeholders in their markets, including their Board of Directors, medical staff, community partners and team members, as well as role modeling our FOCUS values and fostering a healthy organizational culture.
• Des Moines
o David Stark has accepted a new system role focused on government affairs, foundations, grants, sponsorships, and other philanthropy efforts, with direct reporting to Scott. As part of this transition, David has graciously agreed to serve as Market President while we launch an external search to fill the open Market President role. We appreciate David’s support and look forward to sharing more details related to his new position at a later date.
• Fort Dodge and Sioux City
o Leah Glasgo has accepted the role of Market President for Fort Dodge. In Sioux City, we will have an open Market President role, and Leah will continue to serve as Market President until that position is filled, at which point she will return full-time to Fort Dodge. We are grateful for Leah’s ongoing service to both markets, particularly over the past year in Sioux City, and appreciate her willingness to support these transitions.
• Waterloo and Cedar Rapids
o Due to the transition of Pam and Michelle into their Division COO positions, these two Markets will have open Market President roles. Pam and Michelle will continue to serve as Market Presidents as we seek to fill both positions.
• Madison
o In Madison, James Arnett has accepted the role of Market President. James brings a wealth
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of experience in hospital and clinical operations, human resources, and healthcare system relationship-building. We deeply value his ongoing contributions to our organization, as well as the important role he plays in ensuring the ongoing success of the Joint Operating Agreement with UW Health.
• Dubuque
o Chad Wolbers has made the decision to transition out of the President and CEO role at UnityPoint Health – Dubuque, effective late August. We are grateful to Chad for his years of dedicated service and wish him the best as he begins a new entrepreneurial adventure in Dubuque. Under his leadership over the past five years, Chad guided the Dubuque team through the pandemic as well as financial and cultural turnaround efforts. He and his team also worked to shift Finley Hospital/VNA engagement survey results from the bottom tier of performers to the top tier throughout UnityPoint Health. We appreciate Chad’s contributions, along with his support as we launch a search to fill the open Market President role.
• Quad Cities
o Bob Erickson has decided to depart UnityPoint health, effective late August, to pursue new opportunities, both personally and professionally. We want to thank Bob for his leadership through the pandemic while achieving tremendous progress in clinical quality and safety through a culture of high-reliability and improved medical staff engagement and alignment. He was instrumental in key growth initiatives like the Quad Cities Rehabilitation Institute, Muscatine’s Mulberry Clinic project, and robotic surgery advancements. We wish Bob the best going forward and appreciate his support as we launch a search to fill the open Market President role.
Next Steps: Transitions, Design Planning, and Integration Overview
We intend to prioritize filling the open Market President roles, supporting overall transitions, and onboarding new roles in coming weeks and months. In addition, we will be designing the Market senior teams with immediate focus on operations, physician, nursing, and finance leadership. More specific details related to processes and timelines will be shared with leadership soon, but our goal is to move quickly and thoughtfully to preserve stability, maximize internal talent and help our teams stay focused on what matters most.
UnityPoint Health Board Chair: Sally Gray
Additionally, we are excited to share that Sally Gray, RN, has been selected to serve as the next Board Chair for the UnityPoint Health Board of Directors. Sally’s experience with UnityPoint Health is extensive, given her integral leadership on our system board for the past seven years, including her success in leading our Quality and Experience Committee. Sally also served on our Cedar Rapids board from 2001 to 2016, where she was Board Chair and held numerous board leadership positions. As a registered nurse with a Bachelor of Science degree in nursing, we look forward to Sally’s continued expertise and advocacy on behalf of our caregivers, clinicians, team members and patients.
New Company: Leadership Team (see below organizational chart)
We continue to make good progress on our transaction with Presbyterian Healthcare Services. While this transaction is not yet final, it is common practice to establish key leadership roles in advance of a formal close date, which we anticipate occurring later this summer. The new company’s leadership team will focus on improving the business of healthcare and identifying key opportunities to drive efficiencies that will allow local health systems like UPH to reinvest in their people and communities. More information about the new company will be shared once the transaction has formally closed.
Finally, attached are extensive FAQs for reference, and your leaders are available to help answer additional questions. Even though these announcements represent change for the organization, UnityPoint Health is a strong organization with a bright future, and we are energized by the path ahead.
Thank you for all you do for our patients, families, communities, and one another.
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UPH Organizational Restructure and Growth – FAQs
UPH ORGANIZATIONAL RESTRUCTURE
OPERATING STRUCTURE
What is happening?
UPH is going through an organizational restructure, which will shift the organization to an “East/West” division operating structure intended to create administrative efficiencies and preserve operational, clinical, and nursing strength. The East and West divisions, which are similarly sized in terms of operating revenue, will include multiple markets (previously known as “regions”). This means that our markets will begin to work together more closely to deliver services, align processes, streamline decision-making and find opportunities to better deliver on our mission. It represents a change in how we are operationally “set up” with adjustments to affiliate governance and leadership.
What is included in the new operating structure?
We’ve been referring to the new operating structure as “East/West,” which is shorthand language for an “East” division and “West” division. See below for details.
• East Division: Cedar Rapids, Dubuque, Madison, Quad Cities/Muscatine, Waterloo
o Although Madison is included in the East division to create operational and leadership alignment for UPH, the JOA with Meriter and UW Health remains intact.
• West Division: Des Moines, Fort Dodge, Sioux City
• UnityPoint Clinic and UnityPoint at Home represent separate, existing operational units for the UPH health system. They are not included as part of the East or West divisions and will continue to serve patients in all markets.
What do all these new terms mean: health system, division and markets?
• Health system: This term refers to the full UPH enterprise, including hospitals, clinics and home care. In the new parent company, as part of our growth model, there will be two initial health systems – UPH and PHS, who will each maintain their name, brand, values and focus on local healthcare.
• Division: This term represents our newly formed East/West operational model with multiple markets in each division. Divisions represent the consolidation of existing affiliate markets. Division COOs will collaborate across markets to develop synergies and efficiencies in the delivery of care as well as monitor the execution of established standards, maintain accountability over markets, and promote leadership development.
o UnityPoint Clinic and UnityPoint at Home also represent operational units for the enterprise. They are not included as part of the East or West divisions but will collaborate closely with the divisions and markets to provide the best possible care to our patients in the most effective and efficient manner.
• Markets: This term represents what we’ve previously called “regions” and includes Cedar Rapids, Des Moines, Dubuque, Fort Dodge, Madison, Quad Cities/Muscatine, Sioux City and Waterloo. Markets will execute upon established clinical standards and ensure strong community and local presence as well as optimal access and consistent quality of care.
What does the restructure work mean for UnityPoint Clinic and UnityPoint at Home?
UnityPoint Clinic and UnityPoint at Home represent separate, existing operational units for the UPH health system. They are not included as part of the East or West divisions because they serve patients in all markets but will collaborate closely with the divisions and markets to provide the best possible care to our patients in the most effective and efficient manner.
What does the restructure work mean for Meriter, as well as its relationship with UW Health?
These changes do not impact the relationship between Meriter and UW Health, and the Joint Operating Agreement (JOA) remains intact. It’s important that Madison be considered a market within the UPH East
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division so that it can align with the new leadership reporting structure and participate in decision-making and best-practice sharing within the UPH health system.
What does the restructure work mean for our colleges, foundations, or local partnerships?
There are no immediate changes to these areas. Local oversight of colleges and foundations will stay in each market, but as part of our ongoing governance restructure transition, we’ll continue to look for ways to create efficiency, reduce duplication and outline clear accountabilities as we serve a vital role in our communities.
How will the East/West divisions and markets work together in away that benefits UPH?
In this operating structure, our goal is focused on collaboration. We will work together to coordinate care delivery and business services to benefit our patients and communities, with continued emphasis on quality improvements, access to care, and reduction of duplication and cost where possible. Streamlined leadership structures will help drive smooth implementation of health system initiatives, leverage talent, drive best practices and create continuity across all sites of care.
UPH LEADERSHIP
Who will lead UnityPoint Health going forward?
Scott Kizer will serve as the next President of UPH. Scott joined UnityPoint Health as SVP, Chief Legal Officer in 2021 from BayCare health system in Florida. He is a trustworthy, compassionate, and openminded leader with the utmost integrity, who will drive a culture of collaboration rooted in our FOCUS Values and brand promise. Over the past two years, Scott has been instrumental in the launch of our Onward strategy, financial recovery efforts and bold growth initiatives. He is passionate about quality and safety as core tenets of our care delivery, with proven experience in improved physician alignment and ambulatory expansion as well as success in value-based care. As an attorney with over 25 years of experience in the health care industry, Scott has worked across all sectors, including: inpatient, outpatient, insurance, population health, and technology.
What will the new UPH senior team look like under Scott’s leadership?
Scott will lead UPH in partnership with his senior team, which will be focused on clinical and operational excellence as well as team member and provider engagement. Scott and his team also remain committed to finding opportunities to strengthen our culture of belonging through the lens of our brand promise and FOCUS Values. This team includes the addition of two new Division Chief Operating Officers, who will serve as strategic, operationally focused team-builders, driving quality, patient experience, market share and financial performance. Within and across our divisions, they will lead collaborative efforts to coordinate care delivery, improve quality and strengthen access to care, as well reduce duplication and expense, to benefit the communities we serve.
Who will serve as division COOs going forward?
• West Division Chief Operating Officer: Pamela Delagardelle, RN, MSN, has accepted the role of Chief Operating Officer for our West Division, which includes Des Moines, Fort Dodge and Sioux City.
• East Division Chief Operating Officer: Michelle Niermann, MHA, FACHE, has accepted the role of Chief Operating Officer for our East Division, which includes Cedar Rapids, Waterloo, Dubuque, Quad Cities and Madison.
What is the role of a Market President?
Our Market Presidents will be responsible for the effective management of operations within each market (formerly known as “regions”) to ensure we achieve financial, operational, and quality metrics. These leaders will be responsible for building and maintaining strong relationships with key stakeholders in their markets, including their Board of Directors, medical staff, community partners and team members, as well as role modeling our FOCUS values and fostering a healthy culture.
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Who will serve as Market Presidents going forward?
• Des Moines
o David Stark has accepted a new system role focused on government affairs, foundations, grants, sponsorships, and other philanthropy efforts, with direct reporting to Scott. As part of this transition, David has graciously agreed to serve as Market President while we launch an external search to fill the open Market President role.
• Fort Dodge and Sioux City
o Leah Glasgo has accepted the role of Market President for Fort Dodge. In Sioux City, we will have an open Market President role, and Leah will continue to serve as Market President until that position is filled, at which point she will return full-time to Fort Dodge.
• Waterloo and Cedar Rapids
o Due to the transition of Pam and Michelle into their Division COO positions, these two Markets will have open Market President roles. Pam and Michelle will serve as Market Presidents as we seek to fill both positions.
• Madison
o In Madison, James Arnett has accepted the role of Market President. He will continue to play a key role in ensuring the success of the Joint Operating Agreement with UW Health.
• Dubuque
o Chad Wolbers has decided to depart UnityPoint Health, effective late August, to pursue new opportunities, both personally and professionally. We are grateful to Chad for his years of dedicated service and wish him the absolute best going forward. As a result, we will launch a search to fill the open Market President role.
• Quad Cities
o Bob Erickson has decided to depart UnityPoint Health, effective late August, to pursue new opportunities, both personally and professionally. We are grateful to Bob for his years of dedicated service and wish him the absolute best going forward. As a result, we will launch a search to fill the open Market President role.
What will eachMarket leadership team look like?
The East and West Division COOs and Market Presidents will help design the market leadership teams with representation in operations, physician, nursing, and finance. This work will occur in coming months.
Are the UnityPoint Clinic and UnityPoint at Home executive leadership roles changing?
Dr. Patricia Newland will continue to lead UnityPoint Clinic and Jenn Ofelt will continue to lead UnityPoint at Home. These roles will partner with the new Chief Ambulatory Officer, once selected.
Is anything changing with the system Chief Operating Officer role held by Sue Erickson?
Given the scope of change with our operating structure, Sue will continue to work closely with Pam and Michelle in their new roles as Division Chief Operating Officers, as well as support Market President transitions. However, she plans to retire at the end of 2023, and we look forward to sharing more soon.
Does anythingchangewith reporting structure immediately?
Not right away. Transition periods, hiring processes, onboarding efforts, and leadership team design will take time. Please know our goal is to move quickly and thoughtfully to preserve stability, maximize internal talent and help our teams stay focused on what matters most.
How are the open leadership positions being filled?
Our intent is to prioritize next steps related to the open Market President roles, overall transition periods and onboarding efforts in the next few weeks. In addition, we will be designing the market-level senior teams with an immediate focus on operations, physician, nursing, and finance leadership. More specific details related to processes and general timelines will be shared with leadership soon, but our goal is to move quickly and thoughtfully to preserve stability, maximize internal talent and help our teams stay focused.
Are these leadership decisions being made to cut costs or save money?
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These leadership adjustments are intended to help serve our organization in the best possible way and support a longer-term move toward financial sustainability. They allow us to operate from a position of strength in our communities, but remain equally focused on creating efficiency, reducing duplication, and outlining clear accountabilities, so we can provide higher quality, more coordinated care.
What is changing with UPH governance right now?
In May, we received unanimous approval and support for our proposed governance restructure, which will reduce the complexity and duplication of board services but maintain important regulatory requirements and local involvement in care delivery and community representation. There will still be a UPH Board of Directors with equal representation from our markets as well as market-level community boards. As we move forward, these changes will help support our future state operating structure. These changes also enable us to standardize how we approach governance at UPH for clearer decision-making and more aligned approaches around board composition, scope, and processes. Overall, we appreciate the diligent approach taken by our UPH leaders, affiliate CEOs, Board Chairs, and all board members to do what’s best for our organization.
Who will lead the UPH Board of Directors?
Sally Gray, RN, has been selected to serve as the next Board Chair for the UnityPoint Health Board of Directors. Sally’s experience with UnityPoint Health is extensive, given her integral leadership on our system board for the past seven years, including her success in leading our Quality and Experience Committee. Sally also served on our Cedar Rapids board from 2001-2016, where she was Board Chair and held numerous board leadership positions. As a registered nurse with a Bachelor of Science degree in nursing, we look forward to Sally’s continued expertise and advocacy on behalf of our those we serve.
Will there still be Market-level Boards of Directors?
Yes, each Market (formerly region) will have its own market-level community board and have equal representation on the UPH Board of Directors.
Will there be staffing cuts as part of restructure?
Our goal is to preserve talented team members and operate as efficiently as possible while remaining committed to our mission to improve the health of the people and communities we serve.
Why is UPH going through a restructure right now?
Even though we’ve seen performance improvements at UPH, we still face significant financial challenges. Together, growth and restructure initiatives help us secure a more sustainable future, and a new operating structure puts UPH in the best possible position to deliver on our mission and serve our communities for years to come. It also helps us work in new ways to improve quality outcomes, leverage talent and achieve operational efficiencies. Most importantly, these changes elevate us to a position of strength, so we can more confidently and fully invest in our communities.
When will we learn more about next steps with restructure?
We will communicate tangible and timely updates as we make continued progress with restructure. Any potential changes will include thoughtful transitions through the lens of our FOCUS Values, so we can deliver on our mission to improve the health of the people and communities we serve.
What work should we focus on right now?
Stay focused on what matters most: keeping patients and communities at the very center of everything you do. Continue to focus on day-to-day priorities related to quality, safety, patient experience, financial and operational rigor and Onward. Use our strong culture and FOCUS Values as a guide, as we work together through a period of change and transformation.
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SYSTEM SERVICES
Does anything change with System Services immediately? Will System Services and other business support areas move to the new parent company?
At this time, we continue to plan for thoughtful integration work leading up to a formal close date, which is anticipated to occur later this summer. At that time, even though leadership roles for the new parent company will be established, a period of intentional design will begin in partnership with PHS.
When will System Services and other business support areas begin potential integration planning with counterparts at Presbyterian Healthcare Services?
In recent months, we’ve partnered with select leaders from across critical business areas such as IT, finance, supply chain, revenue cycle, human resources, and analytics at each health system to assess opportunities to improve performance and help lower costs. That work is not complete and will continue until a final close date. After a formal close date, a period of intentional design will begin in partnership with PHS.
Where will HR or IT leadership report into in the new company?
HR and IT remain critical to our success and long-term sustainability. At closing, we can begin our work to determine a model design for business support services like HR and IT within the new company. These planning sessions will include select HR and IT leaders from PHS and UPH. Once the model is finalized, we will determine the appropriate leadership reporting structure.
How will we know when our area is beginning integration planning?
We will keep everyone informed with tangible and timely updates as we make continued progress with integration planning.
UNITYPOINT CLINIC AND UNITYPOINT AT HOME
Where do UnityPoint Clinic and UnityPoint at Home fall within the East/West divisions?
UnityPoint Clinic and UnityPoint at Home represent separate, existing operational units for the UPH health system. They are not included as part of the East or West divisions but will continue to support and collaborate closely with the divisions and markets to provide the best possible care to our patients in the most effective and efficient manner.
What is the impact of our growth partnership to our clinicians?
With this type of parent company, healthcare delivery stays local. Each organization’s medical group (e.g., UnityPoint Clinic) remains with each legacy organization. Decisions related to clinician alignment and employment will remain local.
PHYSICIANS AND PROVIDERS
How do these changes benefit physicians and providers?
With our organizational restructure efforts, our intent is to redesign executive and senior teams in a more streamlined, efficient way to better serve our workforce, patients, and communities. This allows us to move forward in a sustainable way as part of our new operating structure. Physicians and providers will continue to benefit from leadership representation at multiple levels of UPH, as well as within the new parent company.
With the intended partnership with Presbyterian Healthcare Services, healthcare delivery stays local. Each organization’s medical group (e.g. UnityPoint Clinic) remains with each legacy organization. Decisions related to clinician alignment and employment will remain local. Our intent is for the new company to realize business services synergies, efficiencies, and savings on behalf of UPH and PHS. This creates a more sustainable path forward for both health systems, which means UPH can focus on doing what it does best in
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service of its mission as well as reinvest in its workforce and communities. Over time, the new company will aim to invest in additional capabilities around clinical excellence, workforce development and innovation with consultation and input from clinicians, leaders, and subject matter experts within both health systems. Clinical leadership (physicians and/or providers) will continue to be included at the health system and market levels of the new leadership structures to ensure the best care is delivered to patients and communities.
What clinical decisions will be made at the new parent company versus UPH or UPC?
Day-to-day healthcare delivery stays local, as well as decisions related to clinician alignment and employment. Work to advance and invest in clinical excellence, workforce development and innovation will be made within the new parent company with consultation and input from clinicians, leaders, and subject matter experts within both health systems.
GROWTH PARTNERSHIP WITH PRESBYTERIAN HEALTHCARE SERVICES
What is happening?
UnityPoint Health (UPH) and Presbyterian Healthcare Services (PHS) are exploring the creation of a new parent company, which will focus on lowering administrative costs, so we can make greater investments in clinical excellence, workforce development and innovation. We have moved through due diligence and anticipate a final close date later this summer, which is subject to regulatory approvals.
What is the name of the new company?
The new company will have its own name and brand, which will be shared upon a final closing date. The name of UnityPoint Health, along with our FOCUS Values, brand promise, mission, and vision, will not change.
Who will lead the new company?
As we approach the close of our proposed transaction with PHS, key leadership roles for the new company have been established. Clay Holderman will serve as President and lead operations and innovation on behalf of the new company. Dale Maxwell, President and CEO of PHS, will serve as CEO of the new company, with focus on future integration efforts and financial strength. The leadership team for the new company is comprised of leaders from UPH and PHS who will lead their respective areas to support initial formation of the new company, planning and implementation of business services synergies on behalf of both health systems and drive clinical excellence, workforce development and innovation. This is effective upon a formal close date.
Why was Denver selected as a business location for the new company?
Denver, Colorado, will serve as a neutral business location for a small group of leaders at the new company to meet, with travel back to respective markets. Both the CEO and President roles of the new organization will be based in Denver. Denver does not represent an expansion of services to a new market, or a significant change to our workforce, as UPH and PHS will continue to be based in their current footprints for local care delivery.
Is this a traditional merger or acquisition?
In a traditional merger, two companies come together and fuse all parts of their business or services. In a traditional acquisition, one company takes over the other. In our growth model, a new parent company will be formed to serve UPH and PHS, as well as other nonprofit health systems in the future. Our approach offers a more sustainable path forward, but preserves the legacy, name, brand, and clinical enterprise of each health system, so we can continue to deliver easier, more personal care.
What does “lowering administrative costs” mean?
With the new parent company, our intent is to help reduce business services costs related to non-clinical, “back-office” functions, as well as supply chain and drug expenses. Over time, this helps elevate UPH to a position of organizational and financial strength, so we can reinvest in our communities.
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Why are we adding another level of executive leadership to the new company?
Every company needs a strong leadership team, and our partnership with PHS is no different. Additionally, the President and CEO of the new company will have different responsibilities and accountabilities than leadership at UPH and PHS. We remain focused on finding ways to reduce costs that will then allow us to reinvest in our workforce, clinicians, and communities.
What is the benefit of a new parent company to UnityPoint Health?
The new company will realize business services synergies and identify and implement best practices on behalf of UPH and PHS. This creates a more sustainable path forward, which means UPH can focus on doing what it does best in service of its mission. Over time, the new company will aim to invest in additional capabilities around clinical excellence, workforce development and innovation.
What happens upon a final closing date?
The final closing date marks the end of a formal transaction and, for us, the beginning of building a new company. We are prioritizing key “Day 1” items that need to be in place immediately, but for the most part, the closing represents the start of further integration planning and intentional design with PHS.
What areas will be part of the new company?
Upon a formal close, we will look to integrate key business areas to the new parent company that present opportunities to improve performance, streamline operations and help lower costs for the benefits of both systems. All decisions will be part of a thorough design process.
What does “integration” refer to?
Integration means we have been, and will continue to, bring select leaders from UPH and PHS to identify where we can come together for the benefit of each health system. It represents an intentional effort to assess systems, platforms, services and much more in key business areas for cost savings and efficiencies.
How do our growth efforts align with UPH organizational restructure efforts?
Growth and restructure work represent two separate, proactive strategic levers that will put UPH in the best possible long-term position. However, there are areas where we’re intentionally aligning efforts across both tracks, so we can avoid duplication and continue to deliver on our mission.
What happens to our Onward strategy?
Our Onward work continues to make great progress, and we remain fully committed to our five-year strategy. The work in progress will not slow or stop as it continues to advance our focus on talent, culture, quality, and safety. All the Onward work helps to create a more sustainable future for UPH.
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