Latest / Becker’s Healthcare Podcast / Zachary Yoder on Expanding Rural Care, Financial Sustainability and Health System Growth
Transcript
- 0:02- The strategic agenda facing hospital and health system
- 0:04- leaders right now is not a short list.
- 0:07- Growth in a consolidating market, sustainable margins in
- 0:09- a reimbursement environment that rarely moves in your
- 0:12- favor,
- 0:12- a tech investment cycle that demands both urgency
- 0:15- and discipline,
- 0:16- and a workforce story that is still being
- 0:19- written.
- 0:20- Eker's fourteenth annual CEO CFO roundtable brings together
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- 0:27- 400 speakers across four days of sessions that
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- 0:35- Not in the abstract, but against the real
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- 0:58- This is Laura Dierda with the Becker's Healthcare
- 1:00- podcast.
- 1:01- I'm thrilled today to be joined by Zachary
- 1:02- Yoder, president of Saint Mary Medical Center, Holy
- 1:05- Family Medical Center, and Saint Luke Medical Center,
- 1:07- all part of OSF Health Care. Zachary, it's
- 1:09- a pleasure to have you on the podcast
- 1:11- today. It's a pleasure to be here. I
- 1:13- appreciate the opportunity.
- 1:14- Absolutely. Now I'm excited for our conversation. I
- 1:17- know we're gonna talk a lot about how
- 1:19- things are going today, some of the cool
- 1:21- things that you're doing at the hospitals, as
- 1:22- well as how you're looking at the future.
- 1:24- But before we dive in, can you tell
- 1:26- us a little bit more about yourself and
- 1:27- your background?
- 1:29- Yeah. So, I've been at OSF for a
- 1:31- little over a year and a half now.
- 1:32- I started my career at Orange Jewish Hospital,
- 1:35- almost twenty years ago now, as a patient
- 1:38- care tech, was in nursing school and went
- 1:41- to nursing school and and got out in,
- 1:43- about four or five years into my, staff
- 1:46- nurse position. So started some,
- 1:49- charge nurse leadership positions and supervisor positions and
- 1:52- then just kind of
- 1:53- took off from there and and got more
- 1:56- involved into,
- 1:57- leadership across the hospital and then into executive
- 2:00- leadership,
- 2:01- as a chief nursing officer.
- 2:03- And then from there,
- 2:05- got into more operations as a COO, and
- 2:07- I've been a president now for,
- 2:09- almost two years. So
- 2:12- Wow. That's amazing. And, you know, what a
- 2:14- a great career journey in terms of being
- 2:16- able to,
- 2:17- you know, start in health care and and
- 2:19- experience so many different aspects of it before
- 2:22- becoming a a top leader at the hospitals
- 2:24- today. And and, you know, when you think
- 2:26- about that position, what is the state of
- 2:28- the union for you?
- 2:30- Could you tell us how things are going
- 2:31- right now and what you're focused on for
- 2:33- the rest of 2026?
- 2:35- Yeah. So this this year's really been about,
- 2:37- building momentum,
- 2:39- and investing in our communities and our people.
- 2:41- We've really continued to grow,
- 2:44- a lot when it comes to
- 2:45- our capacity,
- 2:47- both on the outpatient and the inpatient side.
- 2:50- We've grown in robotics this year, so Saint
- 2:52- Mary Medical Center, here in Galesburg, Illinois, which
- 2:55- is about about two hours south of Chicago,
- 2:58- in between Peoria, Illinois and, Iowa, the Quad
- 3:01- Cities area. We've we've done robotic surgeries here.
- 3:04- So we have a da Vinci, and we
- 3:06- just got our ion bronchoscopy
- 3:07- robot this year as well, which we've kind
- 3:10- of exceeded expectations so far on that too.
- 3:12- So,
- 3:13- we've really grown in the robotic space, which
- 3:16- I think is
- 3:17- not necessarily rare in rural medicine, but it's,
- 3:19- you know, it's not exactly common either to
- 3:22- have
- 3:23- multiple robots in a rural space and so
- 3:25- keeping that care local, close to home is
- 3:27- really important for us.
- 3:29- We've also invested in our capacity through the
- 3:32- ED.
- 3:33- We've expanded,
- 3:34- six more beds here at Saint Mary, which
- 3:36- they were full the day we got them,
- 3:39- because we are just overran with, patients in
- 3:41- the area. We we take care of, between
- 3:44- these three hospitals, roughly a 100,000 patients,
- 3:47- with a little over a 100 bed capacity.
- 3:49- So, you know, that that's quite a bit
- 3:51- of,
- 3:52- of geography and and patients to take care
- 3:55- of, and our our ED is frequently overran.
- 3:58- And so we're always looking for ways to
- 3:59- kinda take the steam off the ED and
- 4:01- make sure we're getting our patients through,
- 4:03- the continuum of care appropriately.
- 4:06- But we've done a lot around expansion, a
- 4:08- lot around, you know, just building momentum, growth.
- 4:11- Our biggest thing is keeping care local.
- 4:14- If it can be done as close to
- 4:16- home as possible, we want to do that
- 4:18- and then as we get, you know, a
- 4:20- little higher complexity in our patients, we will
- 4:23- get them to the next level of care,
- 4:24- typically to our flagship hospital, Saint Francis in
- 4:27- Peoria,
- 4:28- which is our, tertiary quaternary center.
- 4:31- Got it. That you know, it it's helpful
- 4:33- to understand, and I think the success that
- 4:35- you mentioned in terms of making sure you've
- 4:38- got the right capacity and,
- 4:40- moving patients through quickly is is certainly
- 4:43- so important. I know many hospitals and and
- 4:45- organizations,
- 4:47- struggle with that and and we're trying to
- 4:49- find ways to optimize
- 4:51- the way their patient journey through the hospital
- 4:54- and those kinds of things. And so, you
- 4:55- know, what has led to the success that
- 4:57- you have? How do you really
- 5:00- structure the teams in in data and information
- 5:03- and technology to all work together to achieve
- 5:05- these results?
- 5:07- So OSF in general is really big on
- 5:10- technology and innovation.
- 5:12- You know, we've we've done a a lot
- 5:14- around our on call center with our telehealth
- 5:16- components and,
- 5:18- sharing resources with our system as far as
- 5:21- referrals, and, we have a care hub that,
- 5:24- we funnel patients through so that way, we
- 5:27- can make sure that they're getting to the
- 5:29- right
- 5:29- resources in a in a timely manner. But
- 5:32- I think more importantly in our area, we've
- 5:35- really focused on
- 5:36- optimizing what we have,
- 5:39- and working on our culture of our team
- 5:41- to to continue taking care of patients locally.
- 5:44- And so we have, increased our leadership
- 5:47- across all three hospitals,
- 5:49- to be shared.
- 5:51- And so I think that's a big thing,
- 5:52- where our leaders and staff are are being
- 5:55- shared across all three hospitals, and so that's
- 5:57- providing some continuity.
- 5:59- We've set the three hospitals up in kind
- 6:01- of a hub and spoke pattern over here
- 6:03- in the West Central,
- 6:05- region. And so our hub being Saint Mary,
- 6:08- but a lot of our patients don't necessarily
- 6:10- need the
- 6:11- complexity that comes with the larger hospital, and
- 6:15- so we can send them to our critical
- 6:16- access hospitals to receive the appropriate care there,
- 6:20- which takes the steam off of the larger
- 6:22- hospital that's
- 6:23- frequently at capacity for beds. And so, we've
- 6:27- also put our surgeries in some of those
- 6:29- locations.
- 6:30- We've increased,
- 6:32- some of our abilities to to do radiology
- 6:34- and scans, and and we've put, specialty providers
- 6:37- in each location more frequently so
- 6:40- our patients can seek this care closer to
- 6:42- home and not have to come to one
- 6:44- location.
- 6:44- And we've really just focused on trying to
- 6:47- push and pull our resources that we have
- 6:49- to the appropriate
- 6:50- spot.
- 6:51- And I think that really has set us
- 6:53- up for a much better year this year.
- 6:56- And we're really excited for what 2027 is
- 6:58- gonna bring as well because we have,
- 7:01- you know, more outpatient services coming.
- 7:04- We're continuing to grow in robotics.
- 7:06- We'll be growing in cancer care as well.
- 7:09- And then across the market, you know, our
- 7:10- focus is really,
- 7:12- to continue to bring those access points as
- 7:14- needed, to to where the patients are.
- 7:18- That's fascinating to hear. Thank you so much
- 7:20- for digging a bit deeper and sharing the
- 7:22- strategy behind how you're looking at the different
- 7:24- hospitals and the ways that they can truly
- 7:27- work together in order to benefit community and
- 7:29- provide care close to home.
- 7:31- Now in looking at the future too, I
- 7:33- wanted to ask,
- 7:35- about some of the headwinds. What are some
- 7:37- of the big things that you've got your
- 7:38- eye on and that you're preparing for for
- 7:40- the next year or so?
- 7:42- So I think, you know, very similar to
- 7:44- what others are dealing with with Medicaid and
- 7:46- reimbursement pressure. I mean, that that's definitely a
- 7:48- big one. I think when I think about
- 7:50- our our biggest external headwind,
- 7:53- especially in the state of Illinois, it comes
- 7:55- in two categories. I think in one, it's
- 7:57- it's the,
- 7:59- the Medicaid and reimbursement pressures, like I mentioned,
- 8:01- but then another is the,
- 8:03- the trial lawyers and the and the things
- 8:06- that come with that.
- 8:07- There's a lot of, liability and litigation that
- 8:10- happens in the state too, which is very
- 8:12- costly and very expensive,
- 8:14- for everybody involved. And I think that, you
- 8:16- know, that that can be a major issue
- 8:18- when it comes to cost of care.
- 8:20- It it's harder to recruit physicians to those
- 8:23- areas as well because of the known liability
- 8:25- cost associated with it. And so when we
- 8:27- look at a couple of those different things,
- 8:29- they're they're two or three buckets, but they're
- 8:31- very, very expensive buckets.
- 8:34- And, you know, OSF, we take care of
- 8:36- the majority of the Medicaid patients, in the
- 8:38- state of Illinois. So when you look at
- 8:40- outpatient and inpatient combined,
- 8:43- Medicaid patients,
- 8:45- seek OSF at a higher rate. And so,
- 8:48- you know, this this headwind specifically is going
- 8:50- to impact us
- 8:51- disproportionately,
- 8:53- and I think that that's something that we
- 8:55- really need to,
- 8:56- to continue to pursue.
- 8:59- Another piece is specialty recruitment. You know, most
- 9:01- of our hospitals are in rural markets or
- 9:03- in, you know, smaller cities.
- 9:05- And so specialty recruitment and keeping
- 9:08- those physicians there is is difficult,
- 9:11- especially when we have specialists that are traveling
- 9:14- to multiple sites.
- 9:15- Sometimes you only need one or two of
- 9:17- a specialty provider, which comes with an increased
- 9:20- call burden and other kinds of things. And
- 9:22- so, you know, that's very difficult model to
- 9:25- recruit to as well. And so we have
- 9:27- a handful of specialty,
- 9:29- positions right now we've been recruiting for for
- 9:31- a while, and it's a very difficult space
- 9:33- to be in, I think, when it comes
- 9:34- to those,
- 9:36- specifically around, like, GI, urology, and some cardiology
- 9:38- services that we're focused on.
- 9:41- And then I think the other real big
- 9:42- one is kind of the cost pressure.
- 9:44- I think when we talk about what are
- 9:46- we doing for cost of not only labor
- 9:49- but supplies and everything else, you know,
- 9:51- A really large portion of our cost obviously
- 9:54- goes to to our labor force,
- 9:56- which, you know,
- 9:58- it continues to go up every year. And
- 10:00- as we,
- 10:01- focus on retention efforts and things like that
- 10:04- to keep our
- 10:05- employees happy,
- 10:06- and keep them here at our locations, it
- 10:09- it does become increasingly more difficult as,
- 10:12- staff are pushed and pulled to different,
- 10:14- areas and seeking higher reimbursement and things like
- 10:17- that too. So there's a lot of different
- 10:19- areas, but I think a lot of it
- 10:20- stems around the financial viability of the organizations
- 10:23- and the ability to get,
- 10:26- reimbursement dollars for the work that we're doing.
- 10:29- Absolutely. That makes a ton of sense. And
- 10:32- I think, you know, when you talk about
- 10:33- that financial viability, being able
- 10:36- to find a sustainable strategy going forward knowing
- 10:40- some of the Medicaid cuts and reimbursement,
- 10:44- policies that are upcoming
- 10:46- and taking effect next year.
- 10:49- So when you look at that, how are
- 10:50- you
- 10:51- really
- 10:52- what are the conversations like, I guess, with
- 10:54- your executive team about what you need to
- 10:56- do in order to keep that financial viability
- 11:00- and and, plan for,
- 11:02- the next couple of years knowing that those
- 11:04- cups cuts are coming? Are there other places
- 11:06- that you're looking to bring in additional revenue,
- 11:09- or how do you think about that?
- 11:11- Yeah. So our growth in our our certain
- 11:14- areas around, you know, surgery,
- 11:16- cancer care,
- 11:18- outpatient services, we have a lot of initiative
- 11:20- to to continue to bring more outpatient services
- 11:22- when it comes to,
- 11:24- scans and different testing in the area. We
- 11:26- have, you know, low dose CTU testing and
- 11:28- rapid diagnostic clinics. We have, a new CTA
- 11:31- coming, which is gonna help us with some
- 11:33- of our,
- 11:34- patients that are,
- 11:36- needing, scans when it comes to their cardiac
- 11:39- issues or,
- 11:40- potential stroke diagnoses.
- 11:42- There's a lot of things we can be
- 11:44- doing in that space, which we're going to
- 11:46- continue to push,
- 11:47- but then a lot of it comes with
- 11:49- the pieces that we can control,
- 11:52- making sure we're controlling our,
- 11:54- efficiencies when it comes to the cost of
- 11:57- our
- 11:58- teams, what it costs to do business every
- 12:00- day,
- 12:01- making sure that we're being good stewards of
- 12:03- our resources. We're growing in the right areas,
- 12:06- that our that our community needs.
- 12:08- You know, we're not an organization that's going
- 12:11- to to chase the almighty dollar. We're we're
- 12:13- going to really focus on our mission, and
- 12:15- our mission is to take care of of
- 12:17- those that are that are vulnerable in the
- 12:19- communities that we're in. And so, you know,
- 12:22- that comes with a high cost. And so
- 12:23- we have to be very careful with how
- 12:25- we structure things to make sure that it's
- 12:27- a service we can continue into the future.
- 12:30- But I think the biggest thing that we're
- 12:32- focused on over the next ten years is
- 12:33- what we're calling destination OSF.
- 12:36- And destination OSF is an opportunity for us
- 12:39- to
- 12:39- to grow,
- 12:41- across our,
- 12:42- markets. It's an umbrella opportunity, essentially.
- 12:45- We're identifying those services where we can truly
- 12:48- be differentiated.
- 12:49- We're investing in our physicians, technology, our infrastructure,
- 12:54- and then we're making OSF a destination for
- 12:56- those services.
- 12:58- And so when you look at our services
- 12:59- across our markets that we
- 13:02- are focused on, we have a wonderful children's
- 13:05- hospital in Peoria that's,
- 13:07- doing amazing things,
- 13:09- and we have a cancer care institute, a
- 13:11- neurological
- 13:13- institute,
- 13:14- a cardiovascular
- 13:15- institute. And so when you look at all
- 13:17- of these things that we have in our
- 13:18- market,
- 13:19- we really can be a destination center for
- 13:22- those folks in the Central Illinois region,
- 13:25- and we're hoping to continue to provide those
- 13:27- services for years to come. But we want
- 13:30- to be the destination center that people come
- 13:32- to, and so, you know, offering those services
- 13:34- and making sure we're the very best quality
- 13:37- safe care, and provide the best experiences where
- 13:40- is where we're heading.
- 13:41- That's great to hear. And I think when
- 13:43- you talk about having that destination OS, bringing
- 13:46- patients in and, focusing on that patient experience,
- 13:50- what have you noticed about how things have
- 13:53- changed over the last few years? I know
- 13:54- technology obviously makes a lot more,
- 13:57- possible within the health care space when you
- 13:59- think about the patient experience. But how are
- 14:01- you seeing, you know, some of those trends
- 14:04- evolve, and and,
- 14:05- what do patients expect when they're coming in
- 14:07- these days?
- 14:09- Yeah. I think expectations themselves always change and
- 14:12- get get,
- 14:13- a little more difficult, I think, to attain
- 14:15- sometimes when, you know, health care can be
- 14:18- clunky and it can take time to do
- 14:20- things, whereas people are used to instantaneous
- 14:23- gratification,
- 14:24- with their phones and and being on social
- 14:26- media and things like that. And so, you
- 14:28- know, we're always,
- 14:29- you know, a little behind the eight ball
- 14:31- when it comes to to that in health
- 14:33- care.
- 14:34- And so I think what we can really
- 14:36- focus on is providing a good experience for
- 14:39- people, providing the right culture at our organization
- 14:42- where our patients feel valued and respected when
- 14:44- they come in.
- 14:46- We often say this on our team, but
- 14:47- if we we need to treat every single
- 14:50- patient as if it is our loved one.
- 14:52- Is it you know, if it's your child
- 14:53- or your mother or your husband or wife
- 14:55- or whoever you you really,
- 14:58- find to be the most important person to
- 15:00- you,
- 15:01- treat that patient in front of you like
- 15:03- that person. If everybody is doing that all
- 15:05- of the time and is here for the
- 15:07- right reason, mission focused,
- 15:10- we unite under the same values,
- 15:12- that will be a great experience for all
- 15:15- of our patients.
- 15:16- You know, nobody wants to seek health care
- 15:18- services. Nobody wants to come to the hospital,
- 15:20- right? It's something that you're in a vulnerable
- 15:23- position. You're,
- 15:24- might be having the worst day of your
- 15:26- life, right? And so you're met with people
- 15:28- at the organization,
- 15:30- that are going to treat you,
- 15:32- with the dignity that you deserve. And so
- 15:35- I think that ultimately
- 15:36- having that experience,
- 15:38- communicating with people, involving their families,
- 15:41- having our providers, you know, sit on the
- 15:43- edge of the bed and talk to people
- 15:44- to take a moment to really treat them,
- 15:47- like the person they deserve to be treated,
- 15:49- that's really important. And then as leaders, we
- 15:51- have to be treating our employees the same
- 15:54- way. Right? So we have to be coming
- 15:56- to work,
- 15:58- to to be the best version of ourselves
- 16:00- for our teams. And so when we model
- 16:02- that behavior and our teams model that behavior,
- 16:05- then our patients feel that. And so, you
- 16:07- know, I I think we make it a
- 16:09- little difficult at times when we chase patient
- 16:11- experience scores and we talk about all of
- 16:13- these things. Because at the end of the
- 16:14- day, people want to feel special. They wanna
- 16:17- feel heard. They wanna be communicated to, and
- 16:20- they wanna feel safe. And I think at
- 16:22- the end of the day, that's really what
- 16:24- it is, is what would you want if
- 16:26- you were in that situation?
- 16:27- What would you want for your loved ones?
- 16:29- And so that is our culture that we
- 16:31- have been,
- 16:32- creating, and we're gonna continue to create until
- 16:35- probably forever. Right? It's a constant refinement.
- 16:38- Absolutely. That you know, thinking about culture, thinking
- 16:41- about the ways that, you know, you can
- 16:43- really make a difference, for folks coming into
- 16:46- the health system and that human to human
- 16:47- connection is so critical within the health care
- 16:50- space. I I really appreciate that. Now before
- 16:53- we wrap up here, I wanted to ask
- 16:55- you about leadership as well. Who's a leader
- 16:58- that you really admire from any industry and
- 17:01- why?
- 17:02- That's a good question. I've been, you know,
- 17:03- I've been coming to Becker's for,
- 17:06- five or six years now to the conferences,
- 17:08- and
- 17:09- I like them
- 17:10- because I I really enjoy spending time, like,
- 17:14- finding some of those leaders
- 17:16- to listen to,
- 17:17- and kind of listen to every year and
- 17:19- hear their story and progression
- 17:23- And one of the one of the guys
- 17:24- I've really come to like,
- 17:26- through my time at Becker's has been John
- 17:28- Koras.
- 17:29- He's the CEO at Tampa General.
- 17:32- I I really like how he puts culture
- 17:35- with execution
- 17:37- and also with the health system transformation that
- 17:40- he's been undergoing over the last few years
- 17:42- because I find that the way that he
- 17:45- approaches his work with not only be being
- 17:47- transformative,
- 17:49- but the way he really focuses on people
- 17:51- and creating the culture
- 17:53- and then and then getting everybody to a
- 17:55- point of ownership where they can execute,
- 17:57- and breaking down those barriers for people.
- 18:00- He said a lot of really great things
- 18:02- that I've come to admire over the years.
- 18:04- And so, you know, that's one individual I
- 18:07- think that I've I've really come to respect,
- 18:10- and somebody that I've I've really learned a
- 18:12- lot from just listening to, over the years
- 18:15- of coming to Becker's.
- 18:17- I 100%
- 18:18- agree. It's just fascinating and inspiring to hear
- 18:20- what John has to say every year and,
- 18:22- you know, thinking through what it takes to
- 18:24- have that type of transformation.
- 18:25- So I appreciate having your thoughts there, and,
- 18:28- you know, I'll be excited to see you
- 18:29- as well at our CEO CFO round table.
- 18:31- I know you'll be speaking on a panel
- 18:33- and I'm sure inspiring many folks who are
- 18:35- in the audience as well.
- 18:37- Absolutely. I'm always honored to to be involved
- 18:39- in that. I think,
- 18:41- any opportunity I can to to share,
- 18:44- my thoughts and insights and also just, learn
- 18:46- and be around other folks that are lifelong
- 18:49- learners is always a wonderful opportunity. So thank
- 18:51- you.