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Dignity Health, CHI Merging to Form New Catholic Health System

December 8, 2017
by Heather Landi
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Catholic Health Initiatives (CHI), based in Englewood, Colorado, and San Francisco-based Dignity Health officially announced they are merging and have signed a definitive agreement to combine ministries and create a new, nonprofit Catholic health system.

The deal, expected to close in the second half of 2018 and subject to federal, state and church approvals, will create a new health system that includes more than 700 care sites and 139 hospitals across 28 states. The two health systems announced merger talks back in October.

In a press release about the merger, the health systems said the combination of the two organizations will build a “stronger operational and financial foundation to expand access to quality care, build upon complementary resources and capabilities, and reinvest in critical areas to accelerate improvements in care delivery.”

CHI operates in 17 states and comprises 100 hospitals, including three academic health centers and major teaching hospitals as well as 30 critical-access facilities and other facilities and services. CHI reports $15.5 billion in revenue. The two health systems are geographically complementary with no overlap across hospital service areas. Dignity Health is a 22-state network with more than 400 care centers including hospitals, urgent and occupational care, imaging centers, home health and primary care clinics and reported FY2017 revenue of $12.9 billion.

Key strategic and reinvestment priorities for the new system will include:

  • The expansion of community-based care, offering access to services in a variety of outpatient and virtual care settings closer to home;
  • Clinical programs focused on special populations and those suffering from chronic illnesses to keep people and communities healthier for longer; and
  • Further advancement of digital technologies and innovations like stroke robots and Google Glass, which create a more personalized and efficient care experience

“We are joining together to create a new Catholic health system, one that is positioned to accelerate the change from sick-care to well-care across the United States,” Kevin E. Lofton, chief executive officer of CHI, said in a statement. “Our new organization will have the talent, depth, breadth, and passion to improve the health of every person and community we serve."

“By combining our ministries and building upon our shared mission, we will expand our commitment to meeting the needs of all people with compassion, regardless of income, ethnicity, or language,” Lloyd Dean, president and chief executive officer of Dignity Health, said in a prepared statement. "We foresee an incredible opportunity to expand each organization's best practices to respond to the evolving healthcare environment and deliver high-quality, cost-effective care

The new organization will be led by an office of the CEO. Dean and Lofton will both serve as CEOs, each with specific and independent responsibilities and decision-making authority. Together, the CEOs will jointly oversee strategy and integration planning. Lofton will have authority for mission, advocacy, sponsorship and governance, system partnerships, and information technology. Dean will have authority for all of operations, including clinical, financial, and human resources. They will work side-by-side with the executive team to plan a successful integration.

The new organization plans to establish its corporate headquarters in Chicago and operate under a new name that will be chosen in the second half of 2018.

In September 2016, the two systems formed Precision Medicine Alliance LLC (PMA), which will create the largest community-based precision medicine program in the country. A precision oncology program is being implemented in three service areas, and four-to-six more service area launches are planned across the country in the next 12 months. The program’s objective is to be available at nearly 150 CHI and Dignity Health and care centers across the U.S., serving approximately 12 million patients annually.

 

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Why A.I. Will Never Replace Recruiters

September 12, 2018
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AI can be a great tool, but recruiters aren’t going away

I remember fear settling in like a big dark cloud when I opened my search practice in 2005 with all the dire predictions of how the Internet and all the online hiring websites were going to put recruiters out of business. Many articles were written on the demise of the recruiter as Monster.com would literally scare us out of business.

Then came other job opening aggregators like Indeed.com, ZipRecruiter and a whole host of other websites chasing HR gold as if there was a switch they could simply flip to eliminate the human touch that recruiters bring to the table with engaging candidates, only to be replaced by a text message alert or an email notification of all the new jobs that were now open. The only thing they were missing were qualified applicants.

These predictions never came true and all the prognosticators simply forgot what recruiters actually do every day that their technologies will never replace. CIOs need to remember the critical nature of hiring leaders and team members for key roles in their organization. Candidates need to be vetted and coached to listen to an opportunity to join your team when we call the candidates. You have to remember:

  • We talk with people. Yes, we use a cell phone, or now a VOIP phone, and actually engage in a dialogue with candidates about opportunities. It’s a novel approach—I get it.
  • We engage with people that will never look on those job posting sites because they are not looking for a new job. Period.
  • We contact passive candidates that up until our call were never going to leave their job because they are so focused on the now that they don’t even think about looking on a website for a job they are not even interested in.
  • We help clients and candidates come together on the right offer and provide two-way communication during the hiring process, so each party has a deep understanding of the other party’s point of view. Online sites—well you get the picture…
  • We hammer out the details of relocation packages with our clients and the candidates and their families to make sure the move is done smoothly to allow the family to begin their transition to a new city. It’s the personal touch that matters here because we are dealing with people’s lives.

Fast forward: The next wave of artificial intelligence (AI) products for hiring are cropping up everywhere and we are hearing similar calls for recruiters to give up and retreat as the latest algorithm and data analytics tools are able to speed up the hiring process supplanting recruiters. Within seconds, these tools are touting they can determine who the perfect candidates are based on the analytics and machine learning tools designed for hiring. Guess what? It won’t happen.

AI can be a great tool, but it falls dreadfully short of meeting hiring managers' expectations. It won’t wave a magic wand suddenly making hiring enjoyable and much quicker with the same quality as the work performed by most search firms. I’ve been in technology in some form or fashion for a very long time. I love technology and what technology can do to speed up productivity and actionable data I can use every day in the work we do. It’s awesome!

But to be clear, I’m not going away. I have seen this movie before and I am fairly certain I can tell you how it ends. The work recruiters do to find and recruit great talent is something humans must do.

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Cerner President Zane Burke to Step Down This Fall

September 10, 2018
by Heather Landi, Associate Editor
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Cerner president Zane Burke, who first joined the company in 1996, will step down November2, the Kansas City, Mo-based electronic health record (EHR) company announced today.

“Cerner has been a disruptive force of positive change across health care throughout its history, and I’m pleased with the accomplishments we’ve achieved together with our clients and the broader industry community,” Burke said in a statement. “Complex and evolving challenges remain, and Cerner is uniquely positioned to continue innovating for the good of consumers and health care providers.”

 “We thank Zane for his contributions to Cerner across more than two decades,” Cerner Chairman and CEO Brent Shafer said in a statement. “Zane leaves the company with a strong client focus and commitment to continued innovation, partnership and sustainable growth deeply engrained in our culture and leadership philosophy. I am very confident in the capabilities of Cerner’s strong and experienced leadership team.”

John Peterzalek, executive vice president of worldwide client relationships, will assume Burke’s responsibilities and the title of Chief Client Officer.

Since joining Cerner in 1996, Burke had a range of executive positions across sales, implementation, support and finance. He was named President in 2013 after leading Cerner’s client organization. Burke came to Cerner in 1996 from the consultant KPMG, and has held a number of positions in the company, including president of Cerner west from 2003 to 2011, and, more recently, executive vice president of Cerner's client organization.

During his five years as president, Burke has been involved in a number of significant deals, including playing an instrumental role in Cerner winning two massive EHR modernization contracts, first with the U.S. Department of Defense (DoD) in 2015, a $4.3 billion contract, and then just this past May, with the U.S. Department of Veterans Affairs (VA) in a $10 billion contract.

During Burke’s tenure, Cerner also completed one of the biggest deals in healthcare IT history with the acquisition of Siemens healthcare IT business for $1.3 billion in 2014.

The Kansas City Business Journal reported on September 4 that Burke had exercised option to sell nearly $10 million in stock.

 

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Leadership Changes at HHS as CIO Transferred to New Role

August 21, 2018
by Heather Landi, Associate Editor
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Beth Killoran is stepping out of the role of CIO at the U.S. Department of Health and Human Services (HHS) and is moving over to a new role at the Office of the Surgeon General, within HHS.

The news was first reported by Federal News Radio. In an email, a HHS official confirmed that Killoran, who stepped up to the HHS CIO role in July 2016, has joined the Office of the Surgeon General at HHS to develop a "comprehensive information systems strategic plan for the U.S. Public Health Service Commissioned Corps.”

The HHS official also confirmed that Ed Simcox, the HHS Chief Technology Officer, will take on the added role of serving as the HHS Acting CIO, until a permanent selection is made. “Simcox has led multiple, large IT transformation efforts, both as an industry executive and consultant. As HHS’s CTO, he leads HHS’s efforts on enterprise data management, data sharing, technology-related healthcare innovation, and public-private partnerships,” the official said via email.

Simcox started as the HHS CTO in July after serving as acting CTO starting in May and deputy CTO since July 2017, according to Federal News Radio.

Killoran began working at HHS in October 2014, moving over from the Department of Homeland Security. At HHS, she has served as the acting Deputy Chief Information Officer and as the Executive Director for the Office of IT Strategy, Policy and Governance. The HHS official stated that Killoran has served in a number of high-level information technology positions at HHS, “providing leadership on a number of high priority projects.” Killoran also worked for the Department of the Treasury, where she provided IT infrastructure support and operations for over 20,000 employees across 1,500 locations.  During her tenure, she provided IT operational support in response to the 9/11 and Oklahoma City bombing events, the HHS official said.

Federal News Radio reporter Jason Miller reported that, during her time as HHS CIO, Killoran tried to move the agency forward in a number of areas through an updated strategic plan and a more aggressive approach to cloud adoption. “Recently, Killoran led a reorganization of the CIO’s office, naming Todd Simpson as the first chief product officer and promoting innovation,” Miller wrote.

Killoran becomes the fourth major agency CIO to be reassigned during the Trump administration, joining former Treasury Department CIO Sonny Bhagowalia, former Agriculture Department CIO Jonathan Alboum and FEMA CIO Adrian Gardner, according to Federal News Radio’s reporting.

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