Circling the wagons. A system of regional networks protects its outposts

In the past, individual hospitals had little trouble thriving in their communities. They did not need to link with neighboring hospitals to gain a competitive edge. Today, many hospitals are scrambling for linkages. Catholic healthcare systems with facilities scattered throughout the country are examining the opportunities and advantages of delegating governance and management decision-making powers to regional holding companies established for that purpose. Wheaton Franciscan Services, Inc. (WFSI), Wheaton, IL, has aggressively clustered its services on a regional basis since 1984, when it established its first holding company in Milwaukee. WFSI-Milwaukee shows what can be achieved when hospitals that once competed for the same patient base collaborate and share services. By capitalizing on the human and financial resources of a local system, they developed a new base of strength to more effectively deal with business coalitions, payers, and competing physician organizations. By 1986 the entire Wheaton system was reorganized into a system of regional systems.