New York State Health Foundation

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Northeast Health

  • Project Title: Merger of Northeast Health, St. Peter’s Health Care Services, and Seton Health
  • Priority Area: Other
  • Grant Amount: $200,000
  • Date Awarded: October 23, 2009
  • Region: Capital Region
  • Website: http://www.nehealth.com
  • Grant Status: Complete

Overview

The outset of the recession forced Northeast Health, Inc. (NEH)—a regional, comprehensive, nonprofit network that serves 22 counties in upstate New York—to merge with two other health systems in the area: St. Peter’s Health Care Services (St. Peter’s) and Seton Health (Seton). This merger would create the Capital Region’s largest and most comprehensive nonprofit network of high-quality, advanced medical care, primary care rehabilitation, and senior services. It would also increase access to affordable, efficient, high-quality health care services for people in the region. In November 2009, NYSHealth awarded NEH a grant to support efforts to merge the three health care systems into St. Peter’s Health Partners. This grant was funded under the 2009 Economic Recovery RFP.

On October 1, 2011, NEH, St. Peter’s, and Seton merged into St. Peter’s Health Partners; it now employs more than 12,000 people at 125 locations in seven counties of northeastern New York. St. Peter’s Health Partners is the region’s largest private employer, and has an annual budget of nearly $1.1 billion.

Grantee Name: Northeast Health, Inc.

Dates: November 1, 2009–December 31, 2010

Grant Amount: $200,000

Grantee Website: http://www.nehealth.com/

Grant ID: 3281728
 



Grant Goals

NEH set out to accomplish the following goals:

  • Establish a seamless continuum of care and advance the quality of care for acute and non-acute services;
  • Improve access to care for the indigent and underserved;
  • Improve cost-effectiveness through economies of scale;
  • Share best practices, develop common policies, and draw from the quality of achievements of each other;
  • Centralize key administrative and support services; and
  • Reduce the unit cost of services through operating and future capital expenditure efficiencies.


Grant Outcomes

NEH’s merger into St. Peter’s Health Partners achieved the following outcomes:

  • In January 2013, St. Peter’s Health Partners and five independent regional physician practices joined together to form St. Peter’s Health Partners Medical Associates, P.C., a nonprofit, physician-governed, multispecialty group.
  • The Troy Master Facilities Plan was created, which includes a $150 million, three-phased strategic development project. When completed in the mid-2020s, the project will include construction, renovation, and modernization of inpatient facilities on Samaritan Hospital’s campus and outpatient facilities on St Mary’s Hospital campus. The plan will reduce duplication of services between the two hospitals; increase outpatient services with a focus on expanded primary and ambulatory care; and better manage operating costs.
  • St. Peter’s Health Partners is working with Care Logistics, a leading provider of hospital operating system solutions, to develop a new, integrated patient care delivery model that includes incorporating clinical care coordinators as part of the patient care team.
  • St. Peter’s Health Partners continues to work on implementing best practices across the entire system, including a pharmacy and therapeutics committee with a single formulary, sepsis standard, and list of protocols; educational programs for four hospitals; systemwide standardized pressure ulcer prevention and care protocols; a standardized surgical site identification process in order to reduce wrong site/side/procedure surgeries; and standardized prevention of falls protocols.
  • By June 2013, St. Peter’s Health Partners saved $12 million as a result of the merger. Efforts to reduce administration and duplicative services, as well as to consolidate support services and supply contracts, have resulted in savings and a more efficient organization.