
byย Carol J. Bova
When Mountain States Health Alliance and Wellmont Health System merged to create Ballad Health in 2018, the healthcare companies justified the consolidation with the argument that the ability to cut costs and rationalize delivery of health services would yield tangible benefits to patients in Southwest Virginia and Northeastern Tennessee.
The previous article in this series, โCuts and Consolidations,โ detailed howย Ballad Health bolstered finances through shared value-based payment savings, bond refinancing, staff reductions and closures of off-site facilities. This article, Part III, shows how the company acted to lower costs and enhance revenue by consolidating medical services, repurposing hospitals, introducing telemedicine, and implementing a new IT system.
The Virginia Cooperative Agreement, which outlined the requirements of Virginia regulators, allowed repurposing as long as certain โessential servicesโ were retained. Deploying telemedicine and rotating specialty clinics in rural hospitals would help it meet the requirement. (more…)














