Becker’s Healthcare Podcast: In-Depth Conversation with Mark Rich, President and Board Member at Steward Health Care System

Release Date: July 2, 2025
Host: Scott Becker
Guest: Mark Rich, President and Member of the Board at Steward Health Care System

Introduction

In this episode of Becker’s Healthcare Podcast, host Scott Becker engages in a comprehensive discussion with Mark Rich, a seasoned leader with over four decades of experience in the U.S. healthcare industry. Mark, currently serving as the President and a Board Member at Steward Health Care System, delves into his extensive career, the evolving landscape of value-based care, critical capacity constraints in healthcare, and offers invaluable advice for emerging leaders in the sector.

Guest Background: Mark Rich

Mark Rich opens the conversation by sharing insights into his illustrious career spanning 40 years in healthcare. He highlights his expertise in leading turnarounds, overseeing significant mergers and acquisitions totaling approximately $6 billion, and his pivotal role in restructuring Steward Health Care System.

“I’ve spent most of my career, 40 years in the healthcare industry, leading turnarounds and doing big deals, about $6 billion of deals and fixing systems in trouble.” [00:47]

Mark emphasizes the success of Steward’s recent restructuring efforts, which involved saving and transitioning 29 to 31 hospitals to new ownerships, preserving 99.8% of jobs, and maintaining consistent quality of care throughout the process.

“During that restructuring, 29 to 31 hospitals were saved and transitioned to new owners... nearly all 99.8% of the jobs have been preserved.” [00:58]

Current Focus and Trends in Healthcare

Value-Based Care (VBC)

Mark passionately discusses the shift towards value-based care as a transformative trend in healthcare. He underscores its importance despite recent negative press and highlights its measurable benefits, particularly in reducing costs and improving patient outcomes.

“Value based care is a passion... Medicare has saved $3,500 per beneficiary since 2019 on MSSP and some of the other and reach.” [02:18]

Mark elaborates on the effectiveness of Accountable Care Organizations (ACOs), citing a significant reduction in average length of stay without compromising quality of care. He notes that ACOs can cut the length of stay by approximately 33%, thereby alleviating some of the capacity constraints faced by healthcare facilities.

“ACOs really have a huge impact on average length of stay without an impact on quality... sometimes 18% of the length of stay.” [04:05]

Capacity Constraints in Healthcare

Addressing the pressing issue of capacity constraints, Mark acknowledges the looming challenges if current trends persist. He points out the inadequacy in expanding capacity due to limited staff and financial resources, emphasizing the necessity for innovative solutions.

“There is a theoretical capacity problem coming. We won’t have the capacity, we can’t build fast enough.” [04:34]

Mark advocates for leveraging value-based care and technological advancements to mitigate these constraints. He asserts that innovations in technology are essential to streamline processes and enhance efficiency, as traditional human-centric approaches are insufficient to meet future demands.

“All the rest has to be solved through technology. Frankly, there's no other way to do it.” [05:00]

Innovation in Healthcare

Mark highlights the critical role of innovation in addressing the evolving challenges within the healthcare system. He emphasizes that value-based care not only improves patient outcomes but also optimizes operational efficiency, thereby addressing capacity issues.

“Innovation trains kind of left the station. I think there is a model out there that does it.” [04:40]

He discusses the importance of integrating technology to enhance care coordination, reduce waste, and improve overall healthcare delivery. Mark also touches upon the need for community hospitals to reassess their strategic positions, whether to align with larger vendors or join ACOs to remain competitive and sustainable.

“Community hospitals have to rethink. Are they going to be vendor like Optum would like them to be or are they going to join ACO?” [06:53]

Furthermore, Mark underscores the emerging significance of behavioral health within the value-based care framework, projecting its growth as an integral component of comprehensive healthcare delivery.

“Behavioral health component adds 10% to the cost of every stay... better inpatient behavioral health setting and partners.” [08:15]

Advice for Emerging Leaders

Drawing from his extensive leadership experience, Mark offers strategic advice for current and aspiring leaders in the healthcare sector:

1. Capital Management:

   • Challenge: Leaders must rethink how they approach capital acquisition and deployment.
   • Insight: Many hospitals are holding substantial cash reserves to maintain financial stability but need to strategically invest these funds to foster innovation and growth.

   “We’re going to have to see some deployment of that cash and people are going to take more risks with capital and they're going to have to reinvent the way that they spend money.” [09:11]

2. Embracing Innovation:

   • Emphasis: Leaders should actively engage with emerging technologies and innovative practices to stay ahead.

   “Jump on this innovation train that's leaving the station and get caught up because you just don't have the capital to invest.” [09:50]

3. Entrepreneurial Mindset:

   • Opportunity: The new generation brings entrepreneurial skills that can revolutionize healthcare operations.

   “The entrepreneurial skills that this generation is bringing... is going to be really game changer.” [10:20]

4. Consumer-Centric Approach:

   • Strategy: View healthcare through a consumer or retail lens, focusing on patient engagement and ease of access rather than solely on traditional metrics.

   “Think about more about patient engagement and... think of it more as a consumer business or a retail business.” [10:55]

Mark warns against the commoditization of healthcare services and stresses the importance of enhancing the patient experience through improved access and quality of care.

“Focus on the fact that the process of choosing care is going to change and... driven by ease of access.” [11:25]

Conclusion

Scott Becker wraps up the episode by expressing gratitude towards Mark Rich for his profound insights and unwavering commitment to innovation and value-based care. Mark’s perspectives offer a roadmap for healthcare organizations striving to navigate the complexities of modern healthcare delivery, emphasizing the critical need for strategic investment, technological integration, and a patient-centric approach.

“You've got a brilliant perspective, unabashed believer in innovation and value based care. Just a pleasure to visit with you again.” [11:50]

Mark reciprocates the appreciation, reinforcing his dedication to advancing healthcare systems for the betterment of communities and the industry at large.

“Thanks, it's been my honor. I appreciate it.” [12:06]

Key Takeaways

• Value-Based Care is pivotal in reducing costs and improving patient outcomes, with ACOs playing a significant role in optimizing hospital operations.
• Capacity Constraints require innovative technological solutions to ensure healthcare systems can meet future demands without compromising quality.
• Leadership Advice emphasizes strategic capital management, embracing innovation, fostering an entrepreneurial mindset, and adopting a consumer-centric approach to healthcare delivery.
• Behavioral Health is becoming increasingly important within the value-based care framework, highlighting the need for integrated mental health services.

Mark Rich’s expertise and forward-thinking approaches provide invaluable guidance for healthcare leaders aiming to drive sustainable growth and excellence in patient care.