Leading a best-in-class health system integration
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What is the main topic discussed in this episode?
Since recording this episode, there have been some important updates.
What recent leadership changes occurred at BJC Health System?
On June 25th, Rich Leichwig announced that he will retire later this year, following a remarkable 40-year career in healthcare, including the past 16 years at BJC. On the same day, it was announced that Nick Bardo will succeed him as president and CEO of BJC Health System, effective October 1st, 2025. I've had the great privilege of working closely with both Rich and Nick over the years, and I'm excited to see where their next chapters take them. As BJC enters this new phase of leadership, I invite you to listen to our conversation about the integration of BJC and St. Luke's, an effort that exemplifies the strategic vision, cultural focus, and collaborative spirit that will continue to shape the organization's future.
Welcome.
How did BJC Health System and St. Luke's decide to integrate?
You're listening to the McKinsey on Healthcare podcast. If you're looking for insights into the issues that matter most in healthcare right now, you're in the right place. Explore wide-ranging conversations with leaders, changemakers, innovators, and professionals who are at the heart of healthcare today. I'm Drew Ungerman, a senior partner at McKinsey. I also lead McKinsey's global healthcare practice. Today's guests are Rich Leichwig, CEO of BJC Health System, and Nick Bardo, President of BJC Health System. These leaders have recently steered BJC through a significant transformation, completing the combination of St. Luke's Health System of Kansas City and BJC Healthcare of St. Louis in January of 2024.
What challenges did leaders face during the integration process?
This combination has created a single integrated healthcare organization serving patients across Missouri, Illinois, Kansas, and the greater Midwest region. Rich and Nick were at the forefront of this combination. This makes them uniquely positioned to discuss the challenges and opportunities of leading in a best-in-class health system integration, combining academic excellence with expanded patient care capabilities across a broader geographic footprint. So we are here to talk about the exciting combination that you all have helped to shape and lead. And I wanted to start at the beginning, which is what inspired the idea to bring together BJC and St. Luke's together today?
BJC and St. Luke's had a 10 to 12 year relationship prior to us formally joining together at the start of 2024. We had formed an organization called the BJC Collaborative. And so we had worked together for 10 to 12 years. Because of that relationship, because we knew each other so well, Dr. Mindy Estes, the CEO of St. Luke's, and I had conversations about what we both felt we needed to do, given some of the headwinds that were impacting the industry.
How does the integration create value for patients and communities?
And as a result of that, we were able to be very creative. And from that discussion led us to the joining of the two organizations. We quickly shared that with our respective board chairs and had support from both of them as well to proceed. But it really was evolutionary, not revolutionary, given the longstanding relationship that we had with each other.
Just to build on Rich's point, I think we both have long histories and deep leadership within the organizations. And I think both leadership teams, both boards are forward thinking. And really, we'll talk a little bit more about this, but I think we all see change coming in the industry. And I think both boards and both management teams were... Wanting to stay ahead of any changes that were coming at us. And obviously this has proved to be fortuitous as we've now been together for a year and continue to operate in our current environment.
Probably the most significant opportunity we each envisioned at the time was the need to have greater scale. And we could have done that independent of one another. Again, because of the relationship, it led us to say, hey, why don't we join and really create scale immediately that would serve us well going forward.
What role does culture play in the success of health system integration?
You all in particular and BJC as a whole is in the business of taking care of people and your communities. How do you think the combination or how has the combination created value for your patients and your communities that you serve?
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:04–0:08
2
What recent leadership changes occurred at BJC Health System?
0:08–1:00
3
How did BJC Health System and St. Luke's decide to integrate?
1:00–1:44
4
What challenges did leaders face during the integration process?
1:44–3:09
5
How does the integration create value for patients and communities?
3:09–4:36
6
What role does culture play in the success of health system integration?
4:36–9:30
7
What strategies can leaders use to prevent disruption during integration?
9:30–10:41
8
How do you build an effective leadership team during integration?
10:41–33:50
Speakers
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