When I was growing up in the suburbs of Western Chicago the McNeilly family lived in a red brick house at the end of our street.  They were church going people with four children, all of whom excelled in sports and consistently ranked at the top of their class.  The McNeilly’s were the quintessential mid-west, honest-as-the-day-is-long, hardworking family.

In addition to being the “administrator” of the local hospital, Mr. McNeilly was the head of the Arlington Height’s Chamber of Commerce, a deacon in the Methodist Church and among the first to hoist the flag on the Fourth of July.  Today, he would be called the hospital’s “CEO”, and today’s health system CEOs can learn a thing or two from Mr. McNeilly.

Long before the days when “payor mix” was critical to a hospital’s success, Administrator McNeilly understood that the business community was an important constituency to the wellbeing of the hospital.  Contributions to the foundation, the donation of equipment and supplies, sponsorship of fundraising campaigns, and outright gifts were largely due to the generosity of local employers and because Mr. McNeilly spent much of his time shaking hands and making phone calls.

Today, when employers represent a revenue source that defines a hospital’s financial success, CEOs can learn from Mr. McNeilly by viewing employers as the critical constituent they are.  Maintaining a strong presence at local Chambers of Commerce, Rotary Clubs, SHRM Chapters, spending time with brokers and benefit consultants, should be the routine of hospital CEOs.  As one of the largest employers in the community, hospital CEOs share many of the same issues faced by local companies including rising health benefit expense, an increasingly unhealthy workforce, and the desire to retain employees in the face of increased competition for talent.  The CEO’s message is a simple one; “I understand, and I can help.”

No other organization is better suited to bring to market population health management services than the local health system.  Armed with the right data and technology, hospitals have all the assets necessary to effectively identify and mitigate employee health risks to drive down utilization and lower costs.  For employers, the hospital represents an alignment of solutions that solves a problem that has challenged P&L statements for decades.  Mitigating risks, closing care gaps, providing preventative and early detection services are all hospital centric capabilities that should be deployed within the commercial market.  Doing so is a win/win for payor and provider; employers have a reduction in expense, and the provider increases commercial market share to enhance payor mix.

The health system CEO is a community leader on a mission.  Though 30 years have passed, Mr. McNeilly’s presence remains.  His name is engraved on Rotary and Chamber plaques, his image is on the wall outside the administrative suite and the hospital he served has grown from 1,200 to 8,800 employees.  Knowing one’s community and how it interacts with health system success is the purview of the CEO, and understanding the needs of your customer, the one who pays your bills, is its imperative.  Or, as Mr. McNeilly was fond of saying, “No margin, no mission.”

~Robert Chamberlain, Applied Health Analytics Chairman & CEO