"The hospital is the people," said Shetty. It bought its five South Florida hospitals for $1.1 billion dollars and quickly sold the real estate to another company for $900 million. That’s one of the strategies for how it paid for expansion. Another key part is what de la Torre calls “asset light.” Steward does not own its hospital buildings and land. The accountable care effort is just one part of Steward’s business model. "Margin can be captured by the provider, but it's important to note that it is captured by the providers, all the physicians, everybody in the whole system," said de la Torre. Widening the difference between what a big payer like Medicare pays and the actual cost of care can lead to savings and profits. It is a little less in Broward and Palm Beach. That’s 40 percent higher than the statewide average. South Florida is an expensive place for health care – almost $17,000 per Medicare patient in Dade County. "We believe that we can continue to contribute to the growth of that value based model within South Florida," said Shetty. The accountable care model brings together doctors, hospitals and other health care providers to work together on patient care with the goal of lowering the overall cost of care through better coordination and reducing necessary services. On its corporate website, Steward actually has a section titled “business model.” No financial details have been disclosed, but in a news release, de la Torre said the sale freed up money for Steward to invest in its accountable care model.
Since completing the deal to come to South Florida, Steward struck a deal to sell all of its hospitals in Utah to HCA Healthcare. "I pretty much predict that we're not going to get a penny out of South Florida for a few years because every penny (the hospitals) make, I'm going to reinvest." I'm not worried about that," de la Torre said. "We will make money from operations day one on them. Steward is much larger now and it is making a big play for South Florida patients. Three months after launching the effort, it ended with no deal. At that time, Jackson was in financial trouble and it would have represented a hybrid business model, considering Jackson’s status as the safety net public hospital in Miami, and Steward is a for-profit company. In 2011, the company offered to buy Jackson Health System for $1.1 billion dollars. Steward tried to get into the regional health care industry 10 years ago. Just from pure demographics, it makes a lot of sense. We know that it's a market that is positioned for continued growth. "We absolutely love the South Florida market. "These facilities have a number of things that make them incredibly appealing to us," said Stewart Health North America Pres. Steward has expanded its hospital and medical center footprint from its traditional base in Massachusetts to 10 states and two countries.
#STEWARD PALMETTO GENERAL HOSPITAL SERIES#
De la Torre put together Steward Health through a series of deals over the past 11 years with the help of a private equity investor. Steward Health Care is the largest physician-owned health network in the country. Together the facilities have more than 2,000 hospital beds. The deal that is personal expands Steward's presence in Florida with North Shore Medical Center, Hialeah Hospital, Palmetto General, Coral Gables Hospital and Florida Medical Center. It was very personal and it is very personal." "It's where I go when I visit my mom, my brother. Thank you.ĭe la Torre grew up in Florida after his parents fled Cuba in 1960. You turn to WLRN for reporting you can trust and stories that move our South Florida community forward. In August, the company closed on a $1.1 billion purchase of five hospitals in Miami-Dade and Broward counties. It is the newest player in the South Florida health care market. Ralph de la Torre ignored that adage.ĭe la Torre is the founder, chairman and CEO of Steward Health Care. There's a saying that business should not be personal.
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