Have you ever heard of Progressive Healthcare? No one else had either until the press release today announcing the achievement of a joint operating agreement between Columbia St. Mary's and Froedtert & Community Health. Progressive Health will "financially integrate, govern and lead" Columbia St. Mary's and Froedtert & Community Health.
The new entity will have co-Presidents, Leo Brideau of Columbia St. Mary's and Bill Petasnick of Froedtert & Community Health. (I don't recall too many co-Presidencies working out for any length of time. Maybe this is simply part of the transition plan.) The agreement is to be finalized in 2008. (This provides a lengthy window which might indicate that there are some nitty-gritty issues yet to be handled.)
This will create a large, multi-faceted organization. The combination will include Columbia St. Mary's Hospitals in Milwaukee, Ozaukee County, the Sacred Heart Rehabilitation Institute, 30 primary care clinics, the Columbia School of Nursing and a partnership with the Orthopaedic Hospital of Wisconsin on the one side, and Froedtert Hospital, Community Memorial Hospital in Menomonee Falls, and the relationship with the Medical College of Wisconsin on the other.
It is only reasonable to expect that consolidation will cost some jobs since duplication has to exist, add other jobs due to new skill sets required and generally shake up what has been the status quo.
The chairman of Progressive Health, James Wigdale, chairman emeritus of the Marshall and Ilsley Corporation stated, "I firmly believe Progressive Health will offer consumers a better choice, providing the highest quality care at the lowest cost while fulfilling our commitment to be good stewards of the community's resources." (That is a pretty heavy goal. Highest quality and lowest cost are seldom seen together.)
Are we done with puzzle pieces so far as our healthcare community? Hardly likely. Remember that Synergy still has its decision to announce in the next couple of weeks. Only time will tell the story of consolidation's benefit to the community. Healthcare consolidation and building booms have almost always caused overall costs to rise as competition stiffens. If Progressive Health has found the formula to cause that to be reversed, then this may prove to have been a most significant announcement.
Consider, also, the many subordinate relationships that will now be impacted. Vendors to one group may win over vendors to the other group. Network relationships with insurers and administrators may be impacted, too. Software issues will abound. The shadow cast by this announcement is large even though invisible to most of us.
The footprint of healthcare continues to be changed throughout Southeast Wisconsin. For the better or the worse is yet to be determined.
