How Rochester Regional Health Is Healing Itself and the Community

In 2022, Rochester Regional Health was at a crossroads. Like many US health care systems, the nonprofit health provider had been rocked by the ill effects of long-term industry trends and the COVID-19 pandemic. The financial strain was significant—at its lowest point, the business was losing $1 million a day.

Losses weren’t the only issue. The area’s population was aging, leading to a greater need for health care. The population was also shrinking—and the workforce shifting—making it difficult for Rochester Regional to attract and retain sufficient staff to meet demand. The stakes were incredibly high—not just for the health system, but also for the hundreds of thousands of people in Western New York who depend on the health system’s hospitals and clinics for their care needs.

To turn the tide, Rochester Regional brought in a new CEO, Richard “Chip” Davis, a long-time hospital industry executive with a proven track record. Davis assembled an executive committee from existing and new leaders, and partnered with BCG on an enterprise-wide transformation to lead the health system to stability and growth. Starting in late 2022, Rochester Regional and BCG worked shoulder-to-shoulder to identify the most promising opportunities and develop a plan to reach them. The ambition was bold: execute urgent operating and financial priorities while charting a course to innovate and prosper in the future.

Two years in, the transformation and focused efforts from the executive team have played a vital role in reinvigorating the organization. Operations and culture have improved dramatically, employees at all levels are more engaged, and the balance sheet has strengthened. But those haven’t been the only goals—or successes. Positive feedback from patients and a revitalized workforce are testaments to Rochester Regional being back on track to achieve the management team’s ambitious goals.

• The transformation reversed losses, and is providing funds for investments in the future.
• The staff's renewed confidence and satisfaction with their work are boosting morale, leading to a twofold increase in employee engagement.
• Patients have better access to higher quality care.

Headwinds affecting the industry mean the organization’s transformation journey continues—but its future is bright. Everything Rochester Regional has accomplished led Davis to say, “I truly believe we can be one of a handful of systems across the country helping drive that 21st century care delivery model.”