Plaza Environs

[beautyfromashes]

For one thing, both entities are not for profits.

Lol they’re “not for profit” in the loosest sense of the phrase. I really don’t think that’s a factor in the merger equation.

Such a misnomer that “not for profit” means they’re not trying to squeeze every dollar out of every piece of their operation and that CEOs of those companies are working for pennies out of the goodness of their hearts. Every company is for profit.

[FangKC]

Area hospital CEOs see Saint Luke's/BJC HealthCare deal driven by economics

The planned combination of Saint Luke’s Health System and St. Louis-based BJC HealthCare isn’t about chasing major cost savings — the two have been part of a buying collective for a decade. It isn’t about a rapid gain in market share — the two large hospital systems will stick to their respective areas.

A merger, and the increased size that comes with it, will bring one benefit that’s key in today’s health care market, according to the head of one Kansas City health system.

“It’s all about leverage,” University Health CEO Charlie Shields said.

That is, a combined Saint Luke’s/BJC will have a stronger position when negotiating prices for care with payers.
...

https://www.bizjournals.com/kansascity/ ... 2023-06-02

[Cratedigger]

I suppose that makes sense. But isn’t that why St Luke’s joined the collaborative?

https://www.bjc.org/about-us/the-bjc-collaborative

Specific ways which BJC Collaborative members pursue joint work efforts include the following:

Achieving Savings Through Group Purchasing – Through 2022, the BJC Collaborative has achieved $617 million in savings for its members through its purchasing efforts. The Clinical Engineering Operations Committee (CEOC) and Clinical Asset Management (CAM) Shared Services account for $492 million of the savings and have played a crucial role in reducing costs and achieving operational efficiencies. Through a unique and disciplined process, Collaborative members identify clinical asset needs at each organization and work with vendors to secure vital equipment.

[beautyfromashes]

It’s such a tired business fallacy. These companies get bigger but are run bigger too. Agility is what brings cost savings and agility never happens with double the size. They say they’ll get cost savings in buying, but they’ll implement limited supplier lists thinking more bought from each supplier will bring more savings. But, these suppliers know you just cut their competition out of the bidding for them. This is about one, single thing: the CEOs of each entity likely have a big pay kick in with a merger. One will likely retire a much more wealthy person and the other will get a massive pay raise because they will claim it’s more difficult running twice the company. It’s not. The board of Directors will approve it because they get to say they’re on the board of a (higher number) sized company. It’s all ego and frat boy games here really and the community is worse for it.

[atticus23]

Direct from my email (SLHS): "Richard Liekweg, President and CEO of BJC, will serve as CEO of the integrated health system, with the initial Board Chair of the integrated system coming from Saint Luke's."

[taxi]

It’s such a tired business fallacy. These companies get bigger but are run bigger too. Agility is what brings cost savings and agility never happens with double the size. They say they’ll get cost savings in buying, but they’ll implement limited supplier lists thinking more bought from each supplier will bring more savings. But, these suppliers know you just cut their competition out of the bidding for them. This is about one, single thing: the CEOs of each entity likely have a big pay kick in with a merger. One will likely retire a much more wealthy person and the other will get a massive pay raise because they will claim it’s more difficult running twice the company. It’s not. The board of Directors will approve it because they get to say they’re on the board of a (higher number) sized company. It’s all ego and frat boy games here really and the community is worse for it.

Why are you so jaded?
Bigger is never better for the consumer. Make no mistake, this is not about saving payers money. Our health care system is so messed up and the only people who can fix it won't, because they are the ones making more and more money from it. In the meantime, we are the ones who pay more. If civil war does not bring down the American Empire, the healthcare system will.

[beautyfromashes]

Why are you so jaded?

I wouldn't say I'm jaded. I just find the comment from the CEO saying this is about saving money totally laughable. This merger does nothing for the customer, the community or workers. This is a loss for the city.

[GRID]

Why are you so jaded?

This is a loss for the city.

Big time. St Lukes is a pretty big community asset in KC. They will probably lose some of that KC civic pride culture they have always had.

[taxi]

I wouldn't say I'm jaded. I just find the comment from the CEO saying this is about saving money totally laughable. This merger does nothing for the customer, the community or workers. This is a loss for the city.

Sorry, I was being sarcastic. I thought the rest of my reply would make that clear. I have no faith nor trust in healthcare CEOs.

[beautyfromashes]

I wouldn't say I'm jaded. I just find the comment from the CEO saying this is about saving money totally laughable. This merger does nothing for the customer, the community or workers. This is a loss for the city.

Sorry, I was being sarcastic. I thought the rest of my reply would make that clear. I have no faith nor trust in healthcare CEOs.

My bad. I do fight cynicism sometimes so anytime it's suggested, I'll probably take it as serious.