CHE Trinity marked its first full fiscal year as a merged organization with an earnings report that its chief financial officer said reflects its success in finding synergies and moving toward a value-based payment model.
“We had a tremendously successful first year as a merged organization,” said Benjamin Carter, the system's CFO. “Our focus is really on transitioning to population health, making the investment in ACOs.”
Livonia, Mich.-based Trinity Health completed its merger with Catholic Health East in May 2013, bringing together more than 70 hospitals in 21 states. Five months later, the system found a new CEO in Dr. Richard Gilfillan, who was most recently director of the CMS Innovation Center. Gilfillan's arrival suggested that the system had an ambitious plan to move toward a payment-for-value healthcare delivery approach.
Only a small percentage of revenue is currently coming from value-based contracts, Carter acknowledged. But the system is laying the groundwork.