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MCLAREN GROWTH: CEO Philip Incarnati Projects Future Expansion

More Rapid Expansion Foreseen by Visionary Health Care Chief

March 30, 2013       1 Comments
By: Dave Rogers

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Seeking new hospital fields to conquer is Philip Incarnati of McLaren.
 

"Seize the opportunity," says Philip Incarnati, 57, president and CEO of McLaren Health Care, the Flint-based hospital giant.

Although McLaren already is in two-thirds of Michigan, he sees the firm doubling in size in 6-10 years. The firm is seizing opportunities to acquire new hospitals wherever it can.

Just in the last few years, McLaren has added hospitals in Mt. Pleasant, Petoskey, Cheboygan, Macomb, Clarkston and Lansing.

A $65 million proton therapy center recently built in Flint is seen drawing patients from neighboring Midwest states and Canada, adding jobs and putting the firm in the forefront of therapeutic radiation technology.

In an interview last fall with Rachel Brougham of the Petoskey News, Incarnati was candid about the health system's aims to grow, perhaps into Indiana and Ohio, and to have 20 hospitals instead of the present 10.

Mr. Incarnati has been the President and Chief Executive Officer of McLaren Health Care Corporation since June 1989. He served as an Executive Vice President and Chief Operating Officer of Horizon Health System.

In presenting him with its highest award, the Michigan State University College of Osteopathic Medicine in 2009 said he headed "one of the nation's largest health care systems."

In 2002, when McLaren acquired Bay Regional Medical Center in Bay City, the firm had only 4 hospitals.

McLaren also has its own insurance company, McLaren Health Plan, an HMO (health maintenance organization. Since enrolling its first member in August 1998, McLaren Health Plan has expanded to provide health care benefits to Medicaid recipients and group employers through HMO, POS, and PPO products. The Health Plan currently serves Michigan residents throughout 30 counties.

McLaren has been named in Modern Healthcare Magazine as #10 in the "Top 100 Integrated Health Care Systems in America."

McLaren Health Care is an owner of Premier, Inc., the largest alliance of hospitals and health systems throughout the country. Premier leverages purchasing power and contracts as well as provides benchmarking and redesigning of processes among participating owners.

He began his health care career in 1977 and has held top-level executive positions with the Wayne State University School of Medicine, Detroit Receiving Hospital and University Health Center.

He served as the Chairman of the Eastern Michigan University Board of Regents 1995-2005. According to Business Week, Mr. Incarnati has been a Director of King Pharmaceuticals Inc. since November 7, 2006 and Mckesson Provider Technologies, LLC (formerly McKesson Information Solutions, LLC and HBO & Company) since 1995.

He serves as a Director of Anthelio Healthcare Solutions Inc. He serves as a Director of Reliant Renal Care, Inc. He serves as a Director of Oakland Physicians Medical Center, L.L.C, Provider HealthNet Services Inc. (PHNS), Michigan Health & Hospital Association and Flint Cultural Center Corporation.

Mr. Incarnati served as a Member of Board of Regents at Eastern Michigan University since 1992. He served as a Director of Theragenics Corporation from 2001 to May 2006. He served as a Director of Medical Staffing Network Healthcare, LLC (also known as Medical Staffing Network, Inc.). He served as a Director of Medical Staffing Network Holdings Inc., since October 2002. Mr. Incarnati received a bachelor's degree in 1976 and an MBA in management and finance from Eastern Michigan University in 1982.

McLaren Health Care currently has 10 hospitals, ambulatory surgery centers, imaging centers, freestanding dialysis centers, a regional network of cancer centers and providers, an employed primary care physician network, assisted living facilities, commercial and Medicaid HMOs, home health care and hospice, durable medical equipment, retail pharmacy services and a wholly-owned medical malpractice insurance company.

McLaren has more than 16,000 employees and more than 10,000 network physicians. It serves 54 counties in Michigan.

In addition, McLaren Health Care has been ranked in the top 25 integrated health care systems in the United States for the last 10 years. It had $4.2 billion in annual revenue in 2011, and has sustained a revenue growth rate of 20 percent per year for nearly 20 years.

"I would be surprised if in six to 10 years from now we don't have 20 hospitals. Not just in Michigan, but in Ohio and Indiana. I don't see us moving into Florida for example, but to be more of a Midwest based organization," Incarnati said.

"I don't see our growth slowing down," he said. "You have to seize the opportunity when it presents itself. Look at Cheboygan, you have to be ready."

Last spring, McLaren Health Care purchased the former Cheboygan Memorial Hospital after the hospital suddenly closed due to financial issues. Many services reopened in May and June, including outpatient surgery, emergency room care, laboratory and imaging services. The facility is now known as McLaren Northern Michigan, Cheboygan Campus. It is functionally a department of McLaren Northern Michigan. "I think we have services slated for what's best in that community," Incarnati said.



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Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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