Merger of Northeast Health, St. Peter’s Health Care Services, and Seton Health

Grantee Name

Northeast Health

Funding Area

Other

Publication Date

August 2013

Grant Amount

$200,000

Grant Date:

November 1, 2009–December 31, 2010

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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, NYHealth 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.

Outcomes and Lessons Learned

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.

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