Frequently Asked Questions

What does SRHO mean?
SRHO is an acronym for Strategic Regional Healthcare Organizations. The meaning of the acronym simply defines the characteristics that each of these organizations share. They are strategic with respect to both aspirations in population health and radical cost reductions working across corporate lines. They are regional with respect to occupying geography broader than any individual member. For the membership the region may be a portion of the State, the whole State or multiple States. They are all formal healthcare organizations structured with a purpose for work among their membership.

What is SRHO’s purpose?
Virtually all of the members work on population health and on radical cost reduction. A basic purpose of SRHO is to share experience among the members to advance each of these agendas. Additionally, SRHO, The National Association creates an opportunity to pursue collective efforts in payor contracting, national initiatives and the development of new businesses.

Are SRHO member hospitals in national group purchasing organizations like Vizient and Premier?
Many members participate in well-known national GPO organizations. Some have pursued regional purchasing activities either to supplement those national agendas or to replace them.

Alliances in healthcare over the years have not proved to be resilient. Why do the SRHO members believe that will not be true for them?
Two primary variables will drive the resilience of SRHOs. As more of these organizations assume responsibilities for large populations of patients they will be increasingly reliant on each other for their revenue base and their profitability. In the cost improvement space, SRHOs are increasingly engaging in very substantial activities which build economic interdependence primarily focused in non-core business activities. In that regard, SRHOs are, we believe, better positioned innovative than the largest healthcare systems with substantial hierarchical structures.

Multiple organizations working together can be cumbersome. How do SRHO members address this?
It is true that multiple organizations working together is a challenge. All of our members recognize that and work together on it daily. The method to overcome the cumbersomeness includes these variables:

  • When great value is produced from the relationships the cumbersomeness of working together is moderated or eliminated.
  • The focus on population health and aggregating loss populations is recognized to be an essential agreement to perform in the future.
  • In organizing regions bringing multiple provider entities together is easier than the pathway of merger integration. The work together among the members is also more legally permissible.

How many SRHOs exist in America?
We have documented more than 100 organizations in more than 40 States. New SRHOs are being formed each month.

What major healthcare systems are part of the membership of SRHO?
Each organization detail in their geography who participates.

What are the priorities for the work of SRHO?
In the first year the Board of SRHO has established their priorities.

  • Conduct national surveys of members
  • Develop affinity groups
  • Organize and conduct an annual meeting
  • Establish strategic dialogue among interested members
  • Bring the organization to scale
  • Develop a strategy for a national contracting network
  • Select and initiate one or more activities requiring national economies of scale
  • Assess the feasibility of acquiring or building one or more national businesses
  • Seek substantial third party funding