Leader upbeat in busy times for ProMedica

July 01--It's been a busy few months for ProMedica's new President and Chief Executive Officer Randy Oostra.

The head of the health-care provider has overseen a merger with St. Luke's Hospital in Maumee and the establishment of an academic partnership between ProMedica and the University of Toledo Medical School, the former Medical College of Ohio.

In addition, Mr. Oostra has been helping plan for the effects of the

U.S. health-care overhaul and coping with the economic pressures of the recession.

"It's not been a dull eight months," the CEO said recently.

Amidst all the current activity, Mr. Oostra is keeping an ambitious eye on the future, in which he sees a considerably expanded ProMedica.

Over the next five years, the CEO expects the system will incorporate three or four more hospitals into its network (the St. Luke's merger is still pending) and increase the number of employed physicians from 300 to 500.

"We have a number of hospitals we're talking to," Mr. Oostra said. The institutions are in the southeast Michigan and northwest Ohio counties covered by ProMedica, he said. "The more folks we have working together, I think it makes everyone much more effective and efficient."

Forming partnerships and streamlining operations to keep costs down are key parts of his strategy for coping with national health-care reforms.

Mr. Oostra said the reforms will bring many more Americans into the health-care system, an expansion that he applauds. However, he is concerned that cuts in Medicare reimbursements, in addition to more people entering the government system, will put a financial strain on health providers. He also would like to have seen greater emphasis on access to primary care in the health-care legislation and more done to address the costs of medical liability.

"It's kind of a mixed feeling in that some things, if we were president, we would have done a little differently," he said. "The wrong attitude is to say this is horrible, it's not that. I think it's a framework that we need to work with."

How the reforms will impact the health-care industry has yet to be seen, but Mr. Oostra said regional systems like ProMedica are in a strong position to weather any difficulties. Bringing health facilities, hospitals, doctors, and insurance under a single umbrella helps avoid duplication, streamline treatment, and reduce costs, he said. That's why he expects more hospitals and physicians to join ProMedica in the coming years.

The economic downturn also has affected ProMedica. More people have been unable to pay their bills and others have stopped going to the doctor altogether because they can't afford their co-pays. Charity care has also increased, Mr. Oostra said.

As a result, ProMedica has tried to keep staffing costs down through attrition and has cut its travel and advertising budgets.

Economic woes have prompted ProMedica to address basic needs in the region such as poverty, obesity, and hunger. That has been done by introducing education, health, and nutrition programs since 2008, including fitness programs in schools and a course to teach children and parents about healthy eating.

ProMedica also plans to help fund and coordinate local anti-hunger initiatives, although the details have yet to be finalized, Mr. Oostra said. He said addressing hunger is one of his big concerns.

"Let's start with some of the most basic things in life. If I don't have food and shelter, the basics, health-care becomes a secondary issue," Mr. Oostra said. "So as a system we've kind of said we also need to think a little more about those issues than we have."

Above all, Mr. Oostra said he is excited about the partnership with UT, under which UT's medical school will manage residency programs at Toledo Hospital and other ProMedica operations. He believes it will help the area attract and retain good medical staff.

"We believe this is going to be a great partnership," he said. "It's going to be great for the university, it's going to be great for ProMedica ... but most importantly it's going to be great for patients."

Contact Claudia Boyd-Barrett at: cbarrett@theblade.com or 419-724-6272.

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