A certain level of competition is healthy in hospitals and health systems, as it can lead to improved outcomes, lower costs and spark innovation. But unchecked competition can cross a line, according to healthcare leaders.

Becker’s connected with three executives about where that line is — and how organizations can stay mission driven amid industry pressures and achieve growth.

Competition is a necessity in healthcare, according to Timothy Pehrson, president and CEO of Oklahoma City-based Integris Health.

“It pushes healthcare providers to strive to provide more value and better outcomes for patients,” Mr. Pehrson said. “Lack of competition risks complacency.”

It motivates organizations to improve patient experience and outcomes, innovate with respect to care delivery and establish better care models, control costs and invest in workforce and community health, he said.

“Healthy” competition can spur innovation, and keeps organizations focused on what matters most, according to Warren Moore, executive vice president and COO of Mullica Hill, N.J.-based Inspira Health.

“It can help us make sure we’re dialing into our communities and providing the services they need; otherwise, our competition can step in and do that for us,” Mr. Moore said.

When does it go too far?

Healthy competition is the kind that ultimately benefits patients, according to Brian Sponseller, MD, CEO of Carolina Pines Regional Medical Center in Hartsville, S.C.

“But competition crosses the line when it becomes about market share instead of mission,” Dr. Sponseller said. “If it starts pulling resources away from where they’re needed or disrupting the continuity of care, then we’ve lost sight of what really matters.”

In healthcare — especially in the nonprofit sector — it is important not to make decisions based solely on economics, Mr. Moore said.

“We all know that healthcare dollars are scarce, and it’s a huge part of our economy,” he said. “We need to make sure that we’re not just creating competition and bringing up a rise in costs on consumers. If we’re looking purely at the business standpoint, that’s where we start to potentially slip.”

Mr. Pehrson said that as a nonprofit health system, Integris Health’s mission of partnering with people to live healthier lives drives its decisions.

“Growth is first and foremost focused on community and patient needs,” he said. “However, with the ever-growing dynamics in healthcare, especially in consideration of the negative impacts we expect from the OBBB, health systems must balance their strategies to ensure smart growth in service lines that payments can cover our costs.”

Overly aggressive competition can also erode relationships between providers, Mr. Moore said.

“No matter whether someone is in the world from a for-profit standpoint or a nonprofit standpoint, we’re all in healthcare for the same reason at the end of the day, and that’s to make sure that the communities we serve have access to the best possible care,” he said. “Those relationships are important, because we all need each other, and, more importantly, our patients need all of us in order to have the best access.”

The best safeguard against unhealthy competition is keeping patient focus at the center, Dr. Sponseller said.

“As leaders, it’s our responsibility to make every decision with integrity, transparency and collaboration at the center,” he said. “That means working closely with our staff, partnering with local providers and keeping open communication across the community. When we stay focused on our mission and the people we serve, trust grows and collaboration naturally rises above competition.”

Balancing growth with community mission

At Carolina Pines, growth must have purpose.

“We don’t expand just to get bigger, we grow when it fills a gap for our community,” Dr. Sponseller said. “That might mean adding a specialist so patients can receive the care they need close to home, or investing in technology that ensures our community has access to the highest quality care. Every decision we make starts with the same question: Does this improve care for our patients? If it doesn’t, we don’t do it.”

Inspira Health benefits from having a board that is highly focused on ensuring resources are allocated to better communities, Mr. Moore said.

“Open and honest communication between leadership and your trustees is critically important,” he said. “As a leadership team, we start every meeting with our mission and our vision, and we take that seriously, because that’s our true north.”

Balancing market expansion with the mission to serve is an area where partnerships can thrive, Mr. Moore said.

He cited examples such as Inspira’s neurosciences partnership with Camden, N.J.-based Cooper University Health Care, which brings cognitive therapy services closer to its communities, and a joint venture with Atlantic Medical Imaging. The latter has allowed both organizations to function more efficiently, avoid direct competition and expand access by more than 25% over the past two years, Mr. Moore said.

Integris Health’s values — integrity, compassion, accountability, respect and excellence — shape its interactions with patients, caregivers, communities and competitors.

There are several ways systems can collaborate with competitors, such as policy issues that bring competitors together to work toward solutions in federal and state hospital and medical associations, Mr. Pehrson said.

“We work together on community issues such as schools, roads, public safety, economic and workforce development through our chambers and organizations such as the United Way,” he said. “I also have personal relationships with each competitor leader and have regular interactions with them. I genuinely like and respect each of them.”

The post How much competition does healthcare need? appeared first on Becker’s Hospital Review | Healthcare News & Analysis.