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RWJF Clinical Scholars Video Podcast: Group Health CEO Scott Armstrong on Hospital Closures

May 1, 2014, 9:00 AM

In 1986, Scott Armstrong, MBA, joined Group Health Cooperative to manage the Washington- and Idaho-based health care organization’s hospitals. But as he explains in a new Robert Wood Johnson Foundation (RWJF) Clinical Scholar Policy Podcast, in his role as President and CEO of Group Health, he has led the organization in shuttering those same hospitals. He tells RWJF Clinical Scholar Elizabeth Brown, MD, that the move followed a successful push to reduce per member hospital utilization. Group Health now relies heavily on community hospitals, and focuses its providers’ attention on caring for patients leading up to hospital admission and after discharge. The move, he says, has lowered Group Health’s costs while helping local hospitals put otherwise unused capacity to work. Armstrong believes the Group Health experience foreshadows changes for the health care industry more broadly.

The video podcast is part of a series of RWJF Clinical Scholars Health Policy Podcasts, co-produced with Penn’s Leonard Davis Institute of Health Economics.

The video is republished with permission from the Leonard Davis Institute.

This commentary originally appeared on the RWJF Human Capital Blog. The views and opinions expressed here are those of the authors.