Case Study
Montrose Regional Health: Rural Colorado Hospital Climbs to Regional Status
SITUATION
As hospitals across the country struggle with issues like rising labor and supply costs, one hospital, Montrose Regional Health (MRH) is blazing a trail of success. After developing a sound strategic growth plan, MRH has expanded through organic growth, regional collaborations and new partnerships.
BACKGROUND
MRH opened as a community hospital in 1950 to provide healthcare services to residents of Montrose County, Colorado. Today the facility serves residents and visitors as a 75-bed, regional health provider that offers a Level III Trauma Center; a four-story, 90,000 sq. ft., Ambulatory Care Center (2024); multiple specialties; and medical technology that rivals many larger hospitals. Because of its comprehensive services, MRH’s service area extends across seven counties.
Leading the recent growth is Jeff Mengenhausen, MRH Chief Executive Officer (CEO) and former Navy SEAL, who came aboard in 2021. With some of the groundwork already in place for the evolution to a regional health care provider, the team recruited Mengenhausen when it became clear that outside expertise was needed to seize the opportunity and meet their community’s demand for more services. “When you have a board that supports your growth vision, take the risk by adding providers and services,” said Mengenhausen.
PLAN
MRH adopted a unique approach to growth that emphasized collaboration and innovation.
Early steps included working with Community Hospital Corporation (CHC) to analyze out-migration trends. Data showed that patients in the seven-county service area were unnecessarily leaving the region for more complex care. Further analysis indicated that many of those patients and providers were not aware of the hospital’s comprehensive service offerings and were traveling farther than necessary for specialty care.
Additionally, the team focused on identifying and developing additional specialty services, ensuring high care quality rankings, recruiting providers, and driving an excellent patient care experience, including the ability to make prompt patient appointments.
Hired for his energy and innovative thinking, Mengenhausen connected with other like-minded hospital CEOs in the region. Together, they identified common challenges, health needs, and opportunities. They collaborated, tested and shared solutions that benefited them all. “At this point, I’d say that we’re 95% collaboration and 5% competition in the region,” he added.
RESULTS
MRH is now receiving patients from smaller, nearby communities and critical access hospitals. Previously, these patients would have traveled longer distances for anappointment, incur long waits, or forgo care, altogether.
The collaboration began to bear fruit In 2022, when MRH’s surgery volume increased by 32% over the previous year. Progress continued when volume grew by 54% in 2023 and 49% in 2024. One unique regional procedure that MRH offers is lung valve implants, made possible in part due to collaboration with CHC and access to specialized resources. A new spine program and addition of the organization’s first gastroenterologists are also adding to the growth and excitement at MRH. Collectively, the higher volumes are driving the need for more operating rooms.
Other Collaborations, Partnerships and Regional Initiatives
- A regional initiative to improve access to behavioral health care throughout the region, as well as improving and enhancing emergency psychiatric services
- An extensive physician recruitment plan resulted in hiring 90+ primary care and specialty physicians to meet community need
- Regional and community education initiatives and caregiver support services affecting the area’s aging population, including a program for Parkinson’s Disease
Beyond Saying ‘Yes’
The rapid growth at MRH has created some internal pain points. “Our ancillary services, Lab and Radiology, and administrative services, have been stretched,” said Mengenhausen. “CHC was instrumental in helping us identify root causes and solutions.” New processes and procedures, and technology solutions, are easing MRH’s issues. Investment in a cloud-based electronic health record (EHR) system is also planned at MRH for additional efficiencies.
The measurable clinical and operational successes are also fueling positivity and energy at MRH. Leaders and associates are saying, “yes,” to new approaches and ideas, and seeing the payoff in improved outcomes. Leadership training in Lean Six Sigma is furthering the progress.
With over 850 employees, MRH is the second largest employer in Montrose, and offers 27 medical specialties with more in the pipeline. Earning a spot on U.S. News & World Report’s “2024-25 Best Hospitals” list, its highest distinction, as a “High Performing Hospital for Heart Attack and Patient Experience,” is proof that MRH’s and their partners’ efforts are working.
The Best Time Is Now
The healthcare industry and landscape are rapidly changing, and “unprecedented” is a routine descriptor. Changing demographics, new technology, medical advancements, government regulations, and insurance belt-tightening all impact consumer healthcare. MRH is positioned to succeed by continuing to collaborate with their regional partners, accessing CHC’s resources when needed, and saying, “yes” to new ideas. “We have to work together during this interesting time in the healthcare industry,” summed up Mengenhausen.