Thomas Scott, President & CEO, CentraState Healthcare System
The biggest challenge for a healthcare service operation is sustaining a strong, high-quality workforce, according to Thomas Scott, president and CEO of CentraState. “Coming out of COVID, it was tough, to say the least,” he told Invest:. “We’ve doubled down on both recruitment and retention efforts because bringing in new talent is only effective if we can keep them long-term.”
What have been your organization’s most significant milestones and achievements in the last couple of years?
Centrally located in the state whether you look north, south, east, or west, we sit at the heart of it. Our system has several key components, beginning with our flagship hospital, which is licensed for 284 beds and employs approximately 2,600 staff members. Additionally, we have a Senior Services division that now operates two facilities: The Manor, a skilled nursing and sub-acute care facility, and Monmouth Crossing, an assisted living community, both conveniently located near the hospital.
A lot has changed over the past few years. We established a unique partnership with Atlantic Health System, structured as a co-membership rather than a traditional asset merger or joint venture. In this arrangement, Atlantic Health acquired a 51% stake in CentraState, while CentraState retained 49%. What makes this partnership different is our governance structure. Our 20-member board, which has historically overseen CentraState, now consists of 17 CentraState trustees and three Atlantic trustees. This setup ensures that local autonomy remains central to decision-making. Atlantic Health does hold four key reserve powers within this partnership: approval of our strategic plan, annual budget, additional debt, and the sale of any assets. Beyond these areas, the majority of decisions continue to be made at the local level. Our relationship with Atlantic Health initially began through our joint participation in the Health Care Transformation Consortium (HTC), a collaboration of six healthcare organizations across the state. Over time, that partnership evolved, ultimately leading to our co-membership agreement in January 2022. Since then, this collaboration has provided significant benefits and opportunities for growth, including adding providers and access points.
What have been the results of that partnership?
Over the past few years, we’ve experienced significant growth across multiple areas. One of the most notable achievements has been a 6.4% increase in inpatient admissions this past year, an impressive feat, especially considering that many healthcare providers are seeing declines as the field shifts toward outpatient care. Our outpatient services have also expanded, growing by 5.2% and continuing on an upward trajectory. Surgical procedures have seen year-over-year increases as well, supported by the addition of new surgeons to our medical staff. In fact, we’ve granted more medical staff privileges in each of the last two years than at any other time in our history. In 2023 alone, there was a remarkable 52% increase in the number of medical staff privileges granted, demonstrating that more physicians are choosing to practice at CentraState .
One of our standout areas of growth has been cardiovascular care. New Jersey was one of only two states in the country that previously restricted basic cardiac catheterizations due to regulatory constraints. We played a role in advocating for changes to those regulations, allowing us to perform these procedures on-site. As a result, our cardiac catheterization cases skyrocketed from 128 to over 840 — a tremendous milestone that has strengthened our cardiovascular services and expanded patient access to critical care.
What are the biggest challenges your business is facing now?
Our biggest challenge continues to be workforce related. Coming out of COVID, recruitment was extremely difficult, and even now, it remains a struggle. To address this, we’ve doubled down on both recruitment and retention efforts because bringing in new talent is only effective if we can keep them long-term. One of our primary goals was to reduce our reliance on agency staffing, which had become a necessity during the pandemic. Over the past year, we’ve made significant progress in this area. We successfully cut agency nursing expenses by $18 million, directly improving our bottom line. Additionally, we’ve made great strides in retaining our nursing staff. Our RN turnover rate has dropped to 12%, marking a 16-year low, which is an incredible achievement. This success is a testament to the hard work of our human resources team, whose efforts have played a critical role in stabilizing our workforce.
How is technology changing the way you do business?
Having the right tools is just as essential as having a strong workforce. While recruiting and retaining staff is a key focus, investing in advanced technology is equally important for providing top-quality patient care. Recently, we’ve made significant investments in new technology, particularly in cardiology. We opened a state-of-the-art cardiology suite just a few years ago, which includes three procedure rooms, two of which are currently in use. Due to increasing demand, we’re now planning to build out the third room to expand our capacity. In addition to cardiology, we’ve also seen a rise in vascular procedures, driven by newly recruited surgeons who have enhanced our capabilities in this area.
Another major advancement is our recent purchase of the Ion robot, a cutting-edge tool for cancer diagnosis and treatment. This robotic system allows us to navigate deep into the lungs, reaching nodules that were previously difficult to access. By detecting cancer at much earlier stages, we can diagnose and treat it more effectively, potentially improving patient outcomes significantly. We’re also incorporating AI into various aspects of patient care. In our laboratory, AI helps identify infections and other health concerns at an earlier stage, allowing for faster intervention. Additionally, AI-powered technology is enhancing our ability to detect and diagnose conditions, including cancer, with greater accuracy. By leveraging these innovations, we’re ensuring that we can deliver high-quality care more efficiently, helping patients receive faster diagnoses, more precise treatments and better overall outcomes.
What are you looking for in the next two to three years?
We’re constantly exploring ways to invest not only in our workforce but also in the tools and resources needed to support them. This includes offering additional training and educational opportunities to help our staff grow and progress. We’re also committed to continuing our investments in technology. While having cutting-edge tools is essential, they can be expensive, and we must ensure we have the necessary funding to sustain these investments moving forward.
From a business standpoint, the challenge is finding the right balance between our inpatient and outpatient services. Historically, there has been a heavy focus on inpatient care, but we’re shifting our attention to enhance our outpatient and wellness offerings. By expanding in these areas, we can better meet the evolving needs of our patients and stay ahead of trends in the healthcare field.
