HSHS COO details turnaround from $100M annual loss to break-even
Hospital Sisters Health System moved from annual losses of more than $100 million to break-even in under two years, senior vice president and chief operating officer Kathy Donovan said in a Becker's Healthcare Podcast interview reported by Becker's Hospital Review on Oct. 2, 2026.
According to the report, Donovan, who joined the Springfield, Ill.-based system in 2023, consolidated oversight into three core markets — Central Illinois, Southern Illinois and Wisconsin — each led by an executive accountable for systemwide performance, replacing hospital-by-hospital management across 13 ministries.
The system also codified operational "playbooks" for emergency departments, inpatient units and operating rooms, and standardized supply chain, pharmacy, lab and radiology functions at the system level. ED left-without-being-seen rates reportedly fell from roughly 10% to below 1% after the consolidation.
Donovan said HSHS is now pushing margin and has a long-range capital plan for each market, advanced strategic partnerships and accelerated a systemwide Magnet designation effort. She said workforce stability has also improved.