Ballad CEO: Scale key to surviving 'volatile' rural healthcare environment

The past year was a record one for rural hospital closures. But Ballad Health, a Johnson City, Tenn.-based 21-hospital system serving mostly rural communities, has taken a different approach that its leader said has allowed Ballad to continue serving rural patients.

"While many nonurban and rural health systems across the nation struggle to survive in a volatile healthcare environment, Ballad Health has sought a different path by partnering with state officials to improve our population's health, retain local healthcare governance and uphold the fiduciary responsibility that comes with managing such important community assets," Alan Levine, CEO of Ballad, said in a letter released with the health system's inaugural report to its community. The March 17 report details the health system's strategy and performance since its creation in 2018.

Mr. Levine wrote in his letter that what sets Ballad apart from struggling rural hospitals — which, like Ballad, face little population growth and declining inpatient services — is its scale. Scale "permits a realignment of resources to enhance quality, reduce cost and be responsive to the evolving needs of the communities it serves," he said. Scale has also helped the system reduce duplicative services and reduce costs so it can make investments, Mr. Levine said, like its recent $60 million investment in children's healthcare services.

Read his full letter here.

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