Letter from Chip Northrup

What Is the Bassett Plan?

Bassett has published its latest Form 990 tax return, and the 2022 loss is staggering: $64,501,658.00. Since Bassett is surrounded by larger healthcare systems, its ongoing losses continue to beg the question whether it can survive as an independent system and, if so, how.

Dr. Tommy Ibrahim was brought in to “turn it around,” but that was Mission Improbable. The challenges may be beyond the control of any turn-around artist. The American healthcare system is notoriously the most expensive in the world—with a second-rate outcome. Longevity and the well-being of the average American is subpar.

Some of Bassett’s peers—regional not-for-profit hospitals—did make money in 2022. For instance, Southwestern Vermont Health Care in Bennington, Nebraska Medicine in Omaha, Greenwich Hospital, and Methodist Hospital in Dallas all made an operating profit in 2022.

There must be a way forward for Bassett, but more-of-the-same may not be an inspired plan.

Chip Northrup
Cooperstown