History & Overview of Lee Health’s Business Structure
About Lee Health
Lee Health is proud to have served Lee County – the community we call home – for 107 years. In that time, our health system has grown from a single downtown hospital that opened in 1916 to the integrated health system it is today, expanding to meet the growth and evolving needs of Lee County and beyond.
Lee Health provides essential healthcare services to ensure patients get the right care, at the right time and in the right place through a network of hospitals, physician practices and other community-based services.
At the heart of Lee Health is our safety-net mission – the commitment to treat everyone regardless of their ability to pay. In 2022, Lee Health provided more than $80 million in Charity Care and had an overall Community Benefit of $165 million. Lee Health receives no direct tax support for its operations.
In its first 50 years of operation, Lee Health was a private nonprofit health system. In 1968, Lee Health began operating as an independent special healthcare district created by the Florida Legislature and governed by an elected Board of Directors. This structure has served the health system and the community well over the years.
Today’s Financial Realities
Today, times have changed. Hospitals and health systems across the country are facing historic financial challenges. As expenses grow faster than revenue, many health systems are operating at a loss. While Lee Health has managed to weather the storm in most years and has reinvested funds back into services for our community, we are not immune to the pressures of rising costs, increasing competition and declining reimbursement.
The Impact of the Repeal of Certificate of Need
Additionally, Florida repealed significant portions of its long-standing Certificate of Need (CON) program in 2019. The repeal made it easier for most health systems to expand their services. Subsequently, 65 new hospitals were announced to be built in Florida between 2020 and 2022. However, Lee Health has been largely excluded from this expansion because there are limitations to what geographic region we can operate in (Lee County and as defined in the Enabling Act).
Lee Health’s Unwavering Commitment to the Community
The healthcare environment is rapidly changing, and we must adapt and grow to continue our mission in our community. This means proactively studying what the best path forward for Lee Health would be and being thoughtful in our approach to external changes that shape our future. As leaders and stewards of Lee Health, we must do all we can to evaluate the best way to keep our health system local, strong and focused on delivering exceptional care to the people of Southwest Florida.
One option is to evaluate whether returning to a private nonprofit model from our current structure as a public nonprofit health system would be best for the residents of Lee County. Recent legislative changes allow the Lee Health Board of Directors to engage an independent firm to conduct such an assessment.
Significant work must be done to gather all the facts and analyze the information that will help us determine the optimal structure for Lee Health. We must conduct appropriate due diligence and follow the process set forth by the Florida Legislature.
This will be a thoughtful and lengthy discernment process. Any potential change to our business structure will be based on what we learn and what is best to protect our financial health, independence and community-led structure long term, while ensuring our ability to provide a full array of high-quality care and services to everyone in our region, regardless of their ability to pay.
If you have questions or require further information, email us at [email protected], or simply click the link below to send us an email today.