Richard “Chip” Davis

CEO
Rochester Regional Health

Years in current role: 2 yrs. 6 mo.

What accomplishments from the past year are you most proud of?

The impact of COVID-19 was devastating for all health systems, and RRH was no exception. When I arrived in 2022, we were losing $1 million a day, which was unsustainable. However, in 2023, we achieved a remarkable turnaround by closing a $150 million budget gap and greatly enhancing operational efficiency, team engagement and patient safety.  Although the health care sector has improved, 40% of hospitals anticipate financial losses in 2024. Despite this, RRH is on track for a projected break-even performance by the end of the year and profitability in 2025. The organization is now considerably stronger and well positioned for future growth.

What do you think will be the biggest changes in the healthcare industry over the next year?

The big shift in health care is already underway — transitioning from traditional facilities to virtual care. At RRH, we’ve embraced this trend by introducing virtual urgent care, which saw a 113% increase in visits this year. We have extended our virtual offerings to include Virtual Care at the Bedside and ICU Virtual Consult programs. These innovations use bi-directional cameras and microphones to remotely connect care teams with patients. This is particularly beneficial to our patients in rural communities. Additionally, the industry, including RRH, is moving toward value-based care, prioritizing health management, and emphasizing preventative care and post-discharge coordination. This shifts incentives by focusing on the population’s health, delivering a better patient experience, improving health outcomes, and driving down costs.

What change would you make to the healthcare industry if you could?

I would highlight payment reform for hospitals and health systems as a critical improvement area. Despite efforts by the New York State Department of Health to address reimbursement rates for Medicaid Managed Care, Critical Access Hospitals, Sole Community Hospitals, and financially distressed facilities, overall hospital reimbursements in New York still fall short of covering care costs. This gap has led to hospital closures, particularly in rural areas, exacerbating health inequities and limiting access to care in vulnerable communities. RRH is focused on innovation of the care delivery model to reduce waste and inefficiencies amid these constraints. Achieving real change requires transforming our care delivery model and implementing state and federal payment reforms to ensure universal access to care.

This profile is part of our Power List for Health Care for 2024. Information used in this profile was sourced from the honoree. View the full list at rbj.net.