BayCare Health System recently finalized its $4 billion disaffiliation from Trinity Health, ushering in what executives are calling “BayCare 2.0” — a new era of local governance, strategic agility and growth in one of the country’s fastest-changing healthcare markets.
The Clearwater, Fla.-based health system — which spans 16 hospitals, over 370 ambulatory facilities and more than 32,000 employees — acquired Livonia, Mich.-based Trinity Health’s 50.4% ownership stake in May 2024, ending a 27-year joint operating agreement that helped establish BayCare as the dominant provider in West Central Florida.
While the $4 billion transaction provided Trinity with a significant liquidity boost, for BayCare, the move was about unlocking long-term independence and flexibility.
“We’re calling it BayCare 2.0,” Janice Polo, executive vice president and CFO, said during an upcoming episode of the Becker’s CFO and Revenue Cycle Podcast. “Now we have a governance structure that’s 100% community. It’s not partially with Trinity on the board. It really sets us up to be more nimble and adjust more quickly as the market changes. It’s a solid foundation for the next 50 years.”
BayCare’s origins date back to 1997, when it was formed through a joint operating agreement between Trinity, Morton Plant Mease Health Care and South Florida Baptist Hospital in Plant City, Fla. Over the years, Trinity’s role expanded through its acquisition of Newtown Square, Pa.-based Catholic Health East, giving it a controlling stake in BayCare’s board and operations.
Under the new structure, effective June 30, 2024, BayCare’s hospitals and facilities are wholly governed and owned by the BayCare board — a move that President and CEO Stephanie Conners said positions the health system to shape its own future and deepen its commitment to the communities it serves.
“This change to our organization’s corporate legal structure, along with our clinical excellence and sound financial standing, places BayCare in the best position to determine its own future,” Ms. Conners said in a recent statement.
With Florida’s population booming and new market entrants — from specialty groups such as Philadelphia-based Rothman Orthopaedics and New York City-based Hospital for Special Surgery to national systems like Rochester, Minn.-based Mayo Clinic — targeting high-growth regions like Tampa Bay, BayCare is positioning itself to scale with precision and flexibility.
“New market entrants are providing care within the community, and our existing competitors are taking bold steps,” said Ms. Polo, who has served as BayCare CFO for the last seven years. “As the landscape evolves, we’re working to maintain a solid long-range capital plan, while also recognizing the need to stay agile and adapt as the market shifts.”
One of the key shifts at BayCare has been the alignment of its capital and strategic planning models. The system has not operated with an annual budget in many years, instead relying on a rolling operating capital plan. Now, it is aligning that model with a more agile, continuous strategic plan that allows for flexibility beyond a fixed three-year cycle.
“I think that will really help us stay agile — identifying where we need to grow and being able to pivot, whether that’s in our capital investments or strategic direction,” Ms. Polo said. “That’s one area I find really exciting. And with increased market competition, it’s more important than ever to stay alert and aware of what’s happening — and to me, that’s exciting.”
BayCare is also continuing to expand its ambulatory footprint, meeting patients where they are — a move designed to both expand access and fend off competition from independent orthopedic groups, private equity-backed providers and out-of-state systems opening satellite facilities in Florida.
“I wouldn’t say we’re looking to do things entirely differently — it’s more about identifying where we can expand. We already have a large ambulatory footprint, but there’s still room to grow,” Ms. Polo said. “It’s about meeting patients where they are, rather than expecting them to come to us. That’s a major focus for us from a growth perspective.”
At the same time, BayCare isn’t losing sight of its existing assets.
“When we look at our different service lines — what we’re calling clinical institutes — we’re focused on improving the patient journey through better care coordination, streamlining services, and continuing to deliver high-quality care,” she said. “So from a growth standpoint, we’re really exploring two paths: expanding access and enhancing what we already have.”
