Co-opetition Amongst Hospitals

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1 Co-opetition Amongst Hospitals Cindy Bo Nemours Children s Health System Alfred I. dupont Hospital for Children Chief Strategy & Business Development Officer 1

2 What do these have in common? 2

3 What is co-opetition? Co-opetition is a neologism coined to describe cooperative competition. Coopetition is a portmanteau of cooperation and competition 3

4 A transformational gift... It is the duty of everyone to do what is within his power to alleviate human suffering. 4

5 About Nemours Internationally recognized integrated children s health system Established in 1936 as The Nemours Foundation through the legacy and philanthropy of Alfred I. dupont Owns and operates the Nemours/Alfred I. dupont Hospital for Children in Wilmington, Delaware, and Nemours Children s Hospital in Orlando, Florida both multi-specialty, tertiary, quaternary care hospitals Largest provider of online children s health information through Nemours KidsHealth.org which receives more than 1 billion visits annually Supports research, education, prevention and advocacy programs in the communities it serves Provides care for nearly 300,000 unique patients each year A focus on patient- and family-centered care 5

6 One Nemours: An integrated system of care 2 Hospitals (1 in Wilmington, DE; 1 in Orlando, FL) 16 Partner Hospitals (11 in the DV; 6 in FL) Across the Enterprise: 50 Outpatient primary, urgent and specialty care practices 650+ Physicians 200+ Researchers 25+ PhDs 1,400+ Residents, Fellows and Students 6,000+ Associates 6

7 Access to world-class pediatric subspecialists Adolescent Medicine Allergy, Asthma & Immunology Anesthesiology Audiology Behavioral Health Blood & Marrow Transplant Cardiology/Cardiothoracic Surgery Dentistry Dermatology Developmental Medicine Emergency Medicine Endocrinology Gastroenterology/Hepatology & Nutrition General Pediatrics General Pediatric Surgery Genetics Hematology & Oncology Hepatology Infectious Disease Interventional Radiology Neonatology Nephrology Neurology & Neurosurgery Ophthalmology Orthopedics & Orthopedic Surgery Otolaryngology (ENT) Pain Management Palliative Care Pathology/Lab Services Physician Medicine & Rehabilitation Plastic Surgery Pulmonology Radiology/Medical Imaging Rheumatology Sleep Medicine Solid Organ Transplant Sports Medicine Therapy Services Transition of Care Urology Weight Management 7

8 Nemours in the Delaware Valley Free-standing children s hospital; only children s hospital in DE Fierce competitor Children s Hospital of Philadelphia New payment models with payors Need to keep care local Need to drive volumes to support tertiary/ quaternary children s hospital 8

9 Questions we asked ourselves 01/ 02/ 03/ Who are the players in their network and how can they collaborate to maximize value? Which relationships are complementary in nature -- which companies can they work with that can add value to what they provide? Which players are competitors, and are there mutually beneficial ways to create value? 9

10 01/ Who are the players in their network and how can they collaborate to maximize value? 10

11 01/ Who are the players in their network and how can they collaborate to maximize value? With competing NICUs, Nemours works with Christiana to support their fetal surgery program; build strategic collaboratives together; manage population health (e.g., lowering infant mortality rates); and participate in risksharing models Nemours and Coopers collaborate on a leased specialist model under a professional services agreement Nemours and Union create an innovative joint nursing model 11

12 02/ Which relationships are complementary in nature -- which companies can they work with that can add value to what they provide? Nemours works with Aetna to develop a primary care physician scorecard, driving quality, outcomes and efficiencies for Nemours employed physicians In partnership with Christiana and Highmark, Nemours will enter in a profit-sharing model and take on risk for a sub-set of DE s pediatric Medicaid population 12

13 03/ Which players are competitors, and are there mutually beneficial ways to create value? Nemours and CHOP work on several efforts together including advocacy for telehealth payment parity in PA and NJ Additionally, we are in conversations to better understand how we can better address the needs of the communities we both share Conversations ensue with other pediatric institutions on sharing of best practices 13

14 Co-opetition Desired Results = 3 14

15 Closing Thoughts Collaboration is competition in a different form Focus on building something new; Choose partnerships where you each bring something different to the table Sharing with and learning from partners & competitors are paramount Co-opetition has limits 15

16 Q&A 16

17 Thank You! 17

18 Contact Cindy Bo Nemours Children s Health System Chief Strategy & Business Development Officer Alfred I. dupont Hospital for Children 1600 Rockland Road Wilmington, Delaware Phone cindy.bo@nemours.org 18

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