Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

A hospital invested tens of millions to preserve its community and won

Peter F. Nichol, MD, PhD
Policy
September 27, 2017
304 Shares
Share
Tweet
Share

A dear friend who is many years my senior recently remarked that he has stopped watching television. “I’m tired of seeing all the bad s%&t that’s happening in the world.  I know it’s happening, but I can’t do much about it, and it makes me depressed. I want to hear some good news stories.”

He is correct, of course. we all could use a good news story or two.

To be sure, our news media has evolved into a machine that, as Don Henley’s wrote in his song Dirty Laundry, will “Kick ‘em when they’re up, kick ‘em when they’re down …” to drive up electronic traffic in the never-ending media cycle of talking heads. But even so, one hopes there is one story out there, somewhere, that makes us feel good.

So for my friend and everyone else, let me introduce you to Gundersen Health System, the best health care system you’ve never heard of because it is located in the city of LaCrosse in the western side of the very rural state of Wisconsin.

Over the last 15 years, Gundersen has been a trail-blazing health care organization driven by values and a mission to “enhance the health and well-being of (their) communities while enriching every life (they) touch, including patients, families, and staff.”

Until recently, Gundersen was led by an energetic neonatologist turned visionary health care executive named Jeff Thompson. Jeff took Gundersen from a good organization to a great one. During his tenure, Gundersen Health won every award imaginable.

Not only did they become national leaders in clinical outcomes, they transitioned to renewable energy and dropped their greenhouse gas production by over 90 percent. Today, Gundersen uses nearly all-renewable, locally sourced energy and saves money in the process.

This last feat is so impressive that they were the only health care system invited to speak in the at the Paris Climate Talks in 2015. Jeff, a life-long Wisconsin Badger fan, was there in the capital of haute couture sporting, of all things, a Wisconsin baseball cap.

But there is another story about Gundersen, which virtually no one knows about, and that leaves you with a sense of overwhelming goodness.

There is a company named Logistics Health that was started in Lacrosse in 1999 “to address critical military medical readiness concerns, beginning with mass immunization of servicemembers against anthrax.”  At that time, only 25 percent of our soldiers were getting the necessary vaccinations and exams before being sent overseas. Logistics Health rose to meet this critical and obvious need.

But despite the importance of their work, a crisis struck and new investors planned to relocate Logistics Health out of state. Sensing the regional economic devastation that would ensue, the former governor, who had also served as the Secretary of HSS along with Logistics CEO approached Jeff Thompson and Gundersen’s senior VP for business Jerry Arndt. They asked, “Is there anything Gundersen can do?”

After several months of intense study and due diligence, Jeff took it to Gundersen’s Hospital board.  It was not a unanimous vote. The ask was big: tens of millions of dollars with an uncertain 3-year horizon. After heated debate, a consensus was reached. Gundersen would take a portion of its savings and instead of keeping it in the usual stocks, bonds, T-bills, etc. they would buy a near majority share to keep Logistics Health in LaCrosse.

Things went much better than anticipated. Gundersen sold its shares 16 months laterand eventually made a massive return on its investment. This money was then used to keep prices down and reinvest in the community. Logistics stayed in LaCrosse. It is, to this day, one of Lacrosse’s biggest employers.

So what is the moral of this story?

In hindsight it is obvious. Hospitals and health care organizations are community assets.

There are times when they must step outside their normal business of taking care of patients and lead outside their four walls. In these instances, they must reach out and take care of their communities to achieve their mission. Losing Logistics Health would have added more stress to a shaky economy and the health of Gundersen’s communities. People would have lost jobs. House values would have decreased.

Gundersen’s economic viability and thus their ability to care for its communities would have been lessened. In short, LaCrosse would have been economically damaged and emotionally deflated. And, as Jeff Thompson is fond of pointing out, poverty is the main threat to our health.

Instead, because of Gundersen’s huge investment in the community, LaCrosse’s riverfront and downtown are undergoing revitalization in large part due to the growth and corporate citizenship of Logistics Health and the vision of the Gundersen Board.

We are now in an age of health care acquisitions, mergers, and multi-million dollar executive salaries. Many health care systems are remotely controlled by business people living three states away with no connection to the communities they serve. In this era, the Gundersen-Logistics Health story is refreshing and unfortunately novel.

Because Gundersen is locally grown, locally owned, and locally engaged, it was able to rapidly pivot to protect the health of its community in a way that that most health care organizations would never consider. This is the ultimate expression of accountable care that all health care systems should be striving to achieve and a story we can all feel good about.

Peter F. Nichol is chief medical officer, Medaware Systems.

Image credit: Shutterstock.com

Prev

Physicians and magicians are not as different as you think

September 27, 2017 Kevin 0
…
Next

Why do we keep prescribing heroin for our patients?

September 27, 2017 Kevin 6
…

Tagged as: Hospital-Based Medicine, Public Health & Policy

Post navigation

< Previous Post
Physicians and magicians are not as different as you think
Next Post >
Why do we keep prescribing heroin for our patients?

More by Peter F. Nichol, MD, PhD

  • Rethinking consent in the age of Facebook and Cambridge Analytica

    Peter F. Nichol, MD, PhD
  • A better way of using Lyft and Uber in health care

    Peter F. Nichol, MD, PhD
  • If academic medicine is to avoid becoming academic, it must prioritize patient care

    Peter F. Nichol, MD, PhD

Related Posts

  • Don’t judge when trainees use dating apps in the hospital

    Austin Perlmutter, MD
  • 5 challenges of working in a county hospital

    Pranav Sharma, MD
  • Hospital administrators thinking about no-cost treatment which really helps patients

    John Corsino, DPT
  • What do hospital discounts really mean?

    Robert S. Berry, MD
  • Redefining what a hospital library should be

    Abeer Arain, MD, MPH
  • It’s time to stop being skeptical of hospital chaplains

    Ilaria Simeone

More in Policy

  • Physician well-being: Overcoming administrative hurdles

    Pat Rich
  • Health care’s hidden problem: hospital primary care losses

    Christopher Habig, MBA
  • From fishing licenses to gun control

    Mitch Bruss, MD
  • How the NFL offers a window into health care solutions for our country

    Renee Hsia, MD
  • Unlocking the potential of allied health roles for a thriving health care system

    Eric Stastny, MHA
  • Efficient staffing partners for health systems

    Patrick Dotts
  • Most Popular

  • Past Week

    • Health care’s hidden problem: hospital primary care losses

      Christopher Habig, MBA | Policy
    • The dark role of science, medicine, and tasers

      L. Joseph Parker, MD | Physician
    • From fishing licenses to gun control

      Mitch Bruss, MD | Policy
    • 3 key things to do before year end to reduce taxes

      Amarish Dave, DO | Finance
    • Tips for success as a plastic surgeon [PODCAST]

      The Podcast by KevinMD | Podcast
    • Physicians turn feelings of frustration and powerlessness into purpose and hope

      Kim Downey, PT | Physician
  • Past 6 Months

    • Medicare coverage saves lives. Enrolling shouldn’t be this complicated.

      Catherine L. Chen, MD, MPH | Physician
    • The erosion of compassion in medicine

      Daniel Luger, MD | Education
    • Emergency department burnout: a cry for change

      Anonymous | Conditions
    • Health care’s hidden problem: hospital primary care losses

      Christopher Habig, MBA | Policy
    • Pain medicine realities: beyond the opioid crisis

      Richard A. Lawhern, PhD and Stephen E. Nadeau, MD | Conditions
    • When medical protocol meets family concerns

      Richard Young, MD | Conditions
  • Recent Posts

    • Tips for success as a plastic surgeon [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why write? Physicians share their stories of healing through writing.

      Kim Downey, PT | Physician
    • A complex patient interviews a retired physician

      Ann McColl and James Whitlock, MD | Conditions
    • Navigating life’s crossroads: Change, accept, or leave [PODCAST]

      The Podcast by KevinMD | Podcast
    • A doctor struggles to provide mental health care in Appalachia

      Ryan McCarthy, MD | Physician
    • Burnout on the U.S.S. Enterprise

      Arthur Lazarus, MD, MBA | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 1 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Less-Frequent Surveillance Mammo Feasible in Older Breast Cancer Survivors
  • AI and Breast Cancer Screening; Cancer After Treatment for Sickle Cell
  • Yes, Conversion Therapy Efforts Still Exist in Medical Practice
  • Bilateral Mastectomy Not Tied to Better Survival in BRCA1-Positive Breast Cancer
  • FDA Inspections of Foreign Drug Manufacturers Haven't Bounced Back After Pandemic

Meeting Coverage

  • Less-Frequent Surveillance Mammo Feasible in Older Breast Cancer Survivors
  • Bilateral Mastectomy Not Tied to Better Survival in BRCA1-Positive Breast Cancer
  • Is Omitting Radiation Therapy in Low-Risk Breast Cancer a Good IDEA?
  • Study Supports ADC as a New Option for Endocrine-Resistant Metastatic Breast Cancer
  • Maintenance Pembrolizumab-Olaparib Fails to Boost Survival in TNBC
  • Most Popular

  • Past Week

    • Health care’s hidden problem: hospital primary care losses

      Christopher Habig, MBA | Policy
    • The dark role of science, medicine, and tasers

      L. Joseph Parker, MD | Physician
    • From fishing licenses to gun control

      Mitch Bruss, MD | Policy
    • 3 key things to do before year end to reduce taxes

      Amarish Dave, DO | Finance
    • Tips for success as a plastic surgeon [PODCAST]

      The Podcast by KevinMD | Podcast
    • Physicians turn feelings of frustration and powerlessness into purpose and hope

      Kim Downey, PT | Physician
  • Past 6 Months

    • Medicare coverage saves lives. Enrolling shouldn’t be this complicated.

      Catherine L. Chen, MD, MPH | Physician
    • The erosion of compassion in medicine

      Daniel Luger, MD | Education
    • Emergency department burnout: a cry for change

      Anonymous | Conditions
    • Health care’s hidden problem: hospital primary care losses

      Christopher Habig, MBA | Policy
    • Pain medicine realities: beyond the opioid crisis

      Richard A. Lawhern, PhD and Stephen E. Nadeau, MD | Conditions
    • When medical protocol meets family concerns

      Richard Young, MD | Conditions
  • Recent Posts

    • Tips for success as a plastic surgeon [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why write? Physicians share their stories of healing through writing.

      Kim Downey, PT | Physician
    • A complex patient interviews a retired physician

      Ann McColl and James Whitlock, MD | Conditions
    • Navigating life’s crossroads: Change, accept, or leave [PODCAST]

      The Podcast by KevinMD | Podcast
    • A doctor struggles to provide mental health care in Appalachia

      Ryan McCarthy, MD | Physician
    • Burnout on the U.S.S. Enterprise

      Arthur Lazarus, MD, MBA | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

A hospital invested tens of millions to preserve its community and won
1 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...