High performers like UC Irvine Medical Center and Providence St. Joseph Health—its local network comprised of seven hospitals—experienced changes on the executive level in the year ended Sept. 30, the former in search of a new chief executive, the latter naming a regional head to oversee Los Angeles, Orange and San Bernardino counties.
We’ve ranked 30 Orange County hospitals this year with at least $9 million in patient revenue.
The list is unchanged from last year, though some hospitals’ rankings shuffled.
Two Roles
Top grosser UC Irvine Medical Center generated over $1 billion in patient revenue in the 12 months ended Sept. 30, up nearly 10% from a year earlier.
The academic hospital continues to expand clinical services and wellness education in the region, including creating “a first-of-its-kind College of Health Sciences focused on interdisciplinary integrative health.” It says the new college, made possible with a $200 million naming gift from Susan and Henry Samueli, “makes use of all appropriate preventatives, therapeutic and lifestyle approaches … to promote optimal health and wellness.”
Henry Samueli is a co-founder of semiconductor company Broadcom.
This month the university announced the resignation of Howard Federoff, vice chancellor of health affairs and chief executive of the UCI Health System. He will remain a faculty member.
UCI is searching for two candidates to fill Federoff’s roles. UCI Health Chief Operating Officer Richard Gannotta will serve as interim chief executive officer overseeing the hospital, medical group and research and specialty centers. Alan Goldin, associate vice chancellor of faculty affairs for the schools of medicine, nursing and pharmaceutical science and public health, will serve as interim vice chancellor for health affairs overseeing the academic and research missions of the schools and programs at the College of Health Sciences.
Federoff joined UCI in 2015 from Georgetown University.
One Region
No. 2, Renton, Wash.-based Providence St. Joseph Health, further consolidated its presence in Southern California, naming Erik Wexler chief executive overseeing 14 hospitals.
The regional entity will continue to be based in Irvine.
In September Wexler succeeded Richard Afable, who previously headed St. Joseph Hoag and was executive vice president of the Southern California region.
Hospitals in the network scored high on our list, including Hoag Memorial Hospital Presbyterian, Mission Hospital, St. Joseph Hospital Orange and St. Jude Medical Center, ranking second, third, fourth and fifth.
Hoag took in $940 million. Mission, which generated $588 million during the year, swapped places with St. Joseph Orange with $559 million. St. Jude Medical Center moved up a place with $556 million.
Mission is scheduled to open an outpatient cancer center at the Shops at Mission Viejo next year. The addition is part of the healthcare provider’s strategy to grow ambulatory care services at locations that are convenient and accessible for patients. The unique partnership involves the hospital and real estate investment trusts Simon Property Group Inc. (NYSE: SPG) and Welltower Inc. (NYSE: HCN).
• Hoag Orthopedic Institute, a new list entrant last year, holds the No. 14 spot with $129 million, up 5.3%.
Outpatient
Hospital executives told the Business Journal that the future of healthcare lies in outpatient sites. The shift to value-based care means hospitals need to find ways to provide better care at lower costs. That will be driven in part by technology (see related story, page 22), in part by moving care to outpatient settings.
Most ranked hospitals accordingly reported decreased inpatient days and increased outpatient visits.
UCI Medical Center had nearly 600,000 outpatient visits during the year, up 16% from a year earlier.
• No. 9, MemorialCare Orange Coast Medical Center, which generated $310 million, reported a 16.5% outpatient visit increase.
MemorialCare Health System Chief Executive Barry Arbuckle has been a big proponent in growing outpatient care sites. Its other hospitals include No. 10, MemorialCare Saddleback Medical Center.
Solid Performance
No. 6, Children’s Hospital of Orange County, dropped one place on the list with $528 million in patient revenue. It took in $589 million, including No. 21, CHOC at Mission Hospital.
• The Business Journal estimates that Kaiser Permanente grossed about $450 million, remaining No. 7 on the list.
