Podcast Summary: Becker’s Healthcare Podcast

Guest: Michele Volpe, Chief Operating Officer of the University of Pennsylvania Health System
Host: Becker's Healthcare / Laura Deardo
Date: October 1, 2025
Episode Theme: Leadership, Growth, and Innovation at Penn Medicine

Overview

This episode features Michele Volpe, Senior Vice President and Chief Operating Officer for the University of Pennsylvania Health System (Penn Medicine), discussing major achievements, operational challenges, workforce strategies, and future growth plans for one of the nation's leading academic health systems. The conversation delves into Penn Medicine’s unique approach to delivering advanced therapies to community hospitals, operational and workforce strategies post-COVID, the focus on expanding ambulatory services, and the ongoing commitment to leadership development and adaptability.

Key Discussion Points and Insights

1. Introduction to Penn Medicine

[01:15]

• Penn Medicine comprises the University of Pennsylvania Health System and the Perelman School of Medicine—the nation’s first medical school.
• Seven hospitals, extensive ambulatory facilities (from Susquehanna River, PA to the NJ shore), robust home care (including in-home chemotherapy), behavioral health, and rehabilitation joint ventures.
• Proud history of medical firsts: CAR T-cell therapy and Nobel-winning mRNA technology.
• FY25: $10.2B net patient revenue, $12B total operating revenue, net margin 2.1% (before transfers to the school), 4,000 licensed beds, 154,000 admissions, 500,000 ER visits annually, 3,500+ employed physicians, 1,300+ Advanced Practice Providers (APPs).

2. Major Success Story: Expanding Advanced Therapies to Rural Facilities

[01:15–06:32]

• Biggest win: The successful expansion of CAR T-cell and proton therapy (developed at the main academic center) to regional hospitals, notably Lancaster General.
  • “We have moved these therapies to Lancaster General...able to bring these therapies to a rural hospital that has a community that no longer needs to seek that level of care in the big city.” – Michele Volpe [05:39]
• This initiative enhances local care accessibility and reduces the need for patients to travel.

3. Current Top Priorities: Operational Efficiency and Workforce

[07:01–12:47]

Operational Efficiency (“Repair, Refocus, Reimagine – The 3 Rs”)

• Addressing financial challenges; aiming for an additional 2–2.5% operating margin improvement to enable future investments (ambulatory facilities, competitive salaries, etc.).
• Systemwide focus on:
  • Revenue cycle management
  • Supply chain optimization
  • Pharmacy operations
  • Length of stay reductions
  • Perioperative efficiency
  • Contract services
  • Organizational design (spans/layers of leadership)
• Four-year target: $1B in improvement; $243M budgeted for FY25/26 (on track).
• “We’re not looking for that money just to drop to our bottom line, but we want to reinvest.” – Michele Volpe [10:11]

Workforce

• Persistent turnover post-COVID due to broader job opportunities (inside and outside healthcare).
• Renewed emphasis on recruitment and retention by providing development and career advancement opportunities across geographic areas and specialties.
  • “Our workforce has choices. They have choices outside of patient care, and I would say choices that, you know, in years past were not as significant as they are today.” – Michele Volpe [10:56]
• Maintaining competitiveness in compensation and supporting career pathways.

4. Growth Opportunities: Regional Focus and Ambulatory Expansion

[13:32–17:39]

• Regional Markets: Bringing high-end academic therapies and services to local hospitals, reducing the need for patients to travel to Philadelphia.

  • Focus on Lancaster General as a model, with plans for tailored service expansion in other communities.
  • “We want to be a differentiator in our community markets...working with the hospital CEOs and physicians...developing and expanding strategies to bring this higher level of care out to the community.” [14:42]

• Ambulatory Network Expansion:

  • Building new, large outpatient centers in regional/suburban markets (e.g., Cherry Hill, NJ; Radnor, PA; and new facilities in Montgomeryville).
  • Adding surgical centers and specialized oncology services in these facilities.
  • “Ambulatory is a strategy that we at Penn Medicine feel we want to double down on and we want to build larger and more facilities over the next several years.” – Michele Volpe [16:14]

5. Balancing Strategic Vision with Financial Realities

[17:39–20:01]

• Active, dynamic reprioritization of initiatives based on market shifts, financial health, and organizational capacity.
  • “Had you spoken to me even two years ago, some of the areas...were not necessarily top on our list, but it is now.” – Michele Volpe [18:44]
• Continuous evaluation and adaptability are essential to sustainability and growth.

6. Leadership Philosophy and Development

[20:28–24:45]

• Strong culture of direct engagement: Senior leaders, including CEO Kevin Mahoney, host regular forums at all sites for direct feedback and connection.
• Shared leadership in strategic initiatives: each COO-aligned workstream is co-sponsored by an operational and physician leader.
  • “My whole purpose behind that was not to have this be top down from myself, but for the CEOs to share the responsibility for driving an important work stream and...organize that across the entire health system, despite the fact that they are only running one of the hospitals.” – Michele Volpe [22:37]
• Focus on developing and retaining strong leaders across the organization via active forums and leadership development initiatives.

Memorable Quotes & Moments

• On expanding rural access:

  • “We have moved these therapies to Lancaster General...able to bring these therapies to a rural hospital that has a community that no longer needs to seek that level of care in the big city.” – Michele Volpe [05:39]

• On investing efficiency gains:

  • “We’re not looking for that money just to drop to our bottom line, but we want to reinvest.” – Michele Volpe [10:11]

• On workforce dynamics:

  • “Our workforce has choices. They have choices outside of patient care, and I would say choices that, you know, in years past were not as significant as they are today.” – Michele Volpe [10:56]

• On strategic agility:

  • “Had you spoken to me even two years ago, some of the areas...were not necessarily top on our list, but it is now.” – Michele Volpe [18:44]

• On collaborative leadership:

  • “My whole purpose behind that was not to have this be top down from myself, but for the CEOs to share the responsibility for driving an important work stream and...organize that across the entire health system, despite the fact that they are only running one of the hospitals.” – Michele Volpe [22:37]

Noteworthy Timestamps

• [01:15] – Penn Medicine’s size, structure, and major achievements
• [05:39] – Expanding advanced therapies to rural communities
• [07:01] – The organization’s top operational focus areas
• [10:11] – Reinvesting efficiency gains, not just margin improvement
• [10:56] – Challenges in workforce recruitment and retention
• [13:32] – Growth strategy: regionalization and ambulatory clinic buildout
• [16:14] – Future of ambulatory facility expansion
• [18:44] – The importance of frequent reprioritization
• [22:37] – Lateral leadership and joint ownership of strategic initiatives

Summary

Michele Volpe shares a comprehensive look at how Penn Medicine leverages its academic expertise and scale to deliver advanced care in community settings, drive operational and workforce efficiency, and prioritize adaptable leadership for enduring growth. The health system’s ongoing commitment to innovation, patient-centered local care, and collaborative leadership positions it as a model for healthcare delivery transformation.