Worcester Business Journal

MacLauchlan retired. Welch has worked for Tenet for 10 years, and previously led three Florida hospitals for the system. Jeffrey Liebman, CEO of MetroWest Medi- cal Center, was also hired last year. Welch said at both MetroWest and Saint Vincent, Tenet has spent millions upgrading robotic surgery equipment and IT infrastructure – evidence, he said, Tenet is commit- ted to Massachusetts. Big profit, smaller cost Meanwhile, Saint Vincent was the most profitable hospital in Central Massachusetts in its fiscal 2016 year, ending with a profit of $47.6 million and a total margin of 10.4 percent. MetroWest Medical eked out only about $800,000 in profit the same year, but other Massachusetts hospitals lost money. Overall, Tenet turned a $181-million profit on its Massachusetts operations, which include the two hospitals and their two affiliated physician organizations. Full-year finan- cial results for 2017 haven't been published yet. Despite its financial success here, Tenet has differ- entiated itself as a lower-cost provider, compared with UMass Memorial Medical Center, a large academic medical center, and Boston area hospitals. "e thing that is really fortunate for this community is we're not the high-cost Boston hospital," Welch said. Eric Dickson, CEO of Worcester-based UMass Memorial Health Care, agreed Saint Vincent's value proposition is a big advantage for Tenet as healthcare payers move toward value-based care and accountable care organizations requiring providers to deliver care on budget. It has positioned Saint Vincent well, Dick- son said, to work cooperatively with Reliant Medical Group, which officially became part of UnitedHealth Group subsidiary OptumCare this month. Reliant and Saint Vincent have historically worked closely together, with Reliant physicians referring patients to Saint Vin- cent, and even renting office space at the hospital. "Optum needs a low-cost center to send patients to, and Saint Vincent is that low cost center in Central Massachusetts," Dickson said. Meanwhile, Dickson mused UMass Memorial is the last major nonprofit healthcare system in Greater Worcester, surrounded by for-profits Tenet, Reliant and Steward Health Care, owner of the Central Massachu- setts Independent Physician Association. Speaking of Steward, Dickson speculated the private equity-backed healthcare system, which is based in Boston but is growing nationally, may be eying Tenet's Massachusetts hospitals for acquisition, given the group's overall profitability. Welch dismissed the possibility. "I really doubt that is in the works," Welch said. "Tenet has supported our hospitals and invested in them." wbjournal.com | April 16, 2018 | Worcester Business Journal 11 W You Need a Partner that Understands Your Business WORCESTER • FRAMINGHAM • MILFORD • HYANNIS S&G is more than a traditional CPA firm. We have industry-specific expertise and offer a range of services to make an impact on your business. Rely on S&G for business process improvement, profit enhancement, regulatory compliance, as well as taking a proactive approach to accounting and tax services. If you are looking to improve the performance of your company, grow profitability and create greater business value, contact us today. S&G is part of a nationwide affiliation of independently owned accounting firms who demonstrate expertise and focus in working with manufacturers. We offer a wide array of innovative financial services and solutions including: • Research & Development Credits • Investment Tax Credits • International Taxation & Transfer Pricing • Federal, State & Local Tax Planning • Manufacturing Audit • Budgeting and Cash Flow Management • Review of Fixed and Variable Expenses Manufacturers and Distributors have unique needs. They must rely on partners that truly understand their business. 508-757-3311 • www.sgllp.com April 2012 2014 2018 Hospitals 49 80 69* Ambulatory care centers 115 210 460 *Will be 68 imminently, after Des Peres Hospital in St. Louis is sold. Source: Tenet Healthcare Tenet's ambulatory shift After initially investing in hospitals, the parent company of Saint Vincent Hospital and MetroWest Medical has shifted to owning more outpatient centers, which typically have higher margins. Jeff Liebman, CEO of MetroWest Medical Center

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