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HEALTH SYSTEMS: Optimum economy of scale $3-$5 billion+

The July issue of the Catholic Health Association’s journal, Health Progress, is largely devoted to articles about the changing role of Catholic health providers.  What does sponsorship mean today?  How can Catholic providers partner with secular and for-profit entities?  The Morrissey article contains an interesting factoid, which is a quote from an executive at Catholic Healthcare Partners, speaking about the advantages of health systems:

  • “We do believe in economies of scale; we think the optimum economy of scale is at least $3 to $5 billion in assets or annual revenues, and it might be larger than that.”  (page 8)

Source: Morrissey, J.  New partnerships for stronger mission.  Health Progress;94(4):7-13, July-Aug. 2013.  Click here: http://www.chausa.org/publications/health-progress/article/july-august-2013/new-partnerships-for-stronger-mission  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

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