Catholic Health Initiatives, one of the nation's largest health systems, will seek to slash $2 billion from its operating expenses over four years as the Englewood, Colo.-based hospital operator prepares for healthcare reform.
The cost-cutting efforts come as the system seeks to increasingly shift its operations outside the hospital and toward efforts to promote health, Michael Rowan, executive vice president and chief operating officer of Catholic Health Initiatives, told attendees of the American College of Healthcare Executives Congress on Healthcare Leadership.
The system will also seek to increase its ability to take on the functions of a health insurance company, such as controlling the financial risk related to providing healthcare services, he said.
Catholic Health Initiatives is one of several health systems that has moved recently to acquire insurers.
Operations outside the hospital, such as ambulatory-care clinics, outpatient laboratory services and long-term care, account for half the health system's revenue and are expected to increase to two-thirds in coming years, he said.