The Quadruple Aim—improving patient experience, advancing population health, lowering the cost of care and supporting provider well-being—continues to guide the evolution of U.S. health care. Realizing all four goals simultaneously has proven elusive, and the headwinds are increasing: U.S. hospital occupancy now averages about 75%, according to a study from the Journal of the American Medical Association, signaling increased pressure on access, cost and care delivery.
Our health system, the nation’s first and largest operator of neighborhood hospitals, demonstrates a clear, measurable way to achieve the Quadruple Aim by redefining how and where care is delivered. Through small-format hospitals, with co-located ambulatory services, located directly in the communities they serve, Emerus and its health system partners are building a model that is more personal, efficient and sustainable.
Improving Patient Experience
Neighborhood hospitals are built on the principle of proximity. By placing fully licensed facilities in locations that need it most, these hospitals eliminate many of the barriers that drive patient dissatisfaction—long travel times, crowded emergency rooms, impersonal care environments and the time it takes to see a clinician.
Smaller-scale facilities allow for shorter wait times, more individualized attention and a more personalized experience. Through partnerships with major health systems across the U.S., neighborhood hospitals maintain seamless care coordination and continuity for patients who require higher levels of treatment. This model of accessible and connected care enhances both patient satisfaction and clinical outcomes.
Advancing Population Health
Neighborhood hospitals extend care into the communities where patients live, work and play, serving as vital touchpoints for broader population health management. Embedded within the neighborhoods they support, these hospitals are uniquely positioned to identify emerging needs, promote preventive care and address health challenges more effectively.
Their close proximity and integration with partner health systems enable faster coordination with primary care providers and more seamless referrals for higher-acuity needs. In addition, neighborhood hospitals are often co-located with ambulatory services—including primary and specialty clinics, pediatric care, imaging centers, outpatient rehabilitation and diagnostic testing—creating a convenient, connected continuum of care. This community-based model strengthens preventive care, enhances continuity, improves quality outcomes and promotes greater health equity.
Reducing the Cost of Care
Neighborhood hospitals achieve significant financial efficiencies without compromising quality. Their value-based, capital-efficient design reduces overhead and addresses capacity issues while enabling health systems to expand their footprint quickly and economically.
By absorbing patient volume that would otherwise overwhelm larger hospitals, these facilities relieve overcrowding, shorten emergency department wait times and keep higher-acuity beds available for the patients who need them most. This distributed- capacity model allows hospitals to balance resources more effectively across their networks, improving patient flow and overall system performance.
By diverting lower-acuity cases from overcrowded larger hospitals, these neighborhood hospitals optimize resource use across partner networks and help reduce unnecessary admissions. This right-sized approach represents a sustainable way to control costs while improving patient outcomes.
Supporting Provider Well-Being
The fourth aim—provider well-being—is integral to the neighborhood hospital philosophy. Smaller teams and a flexible, hybrid staffing model allow physicians and nurses to work at the top of their license with less administrative burden and more patient contact.
The virtually integrated physician and nursing model connects clinicians across locations through advanced telemedicine platforms. This removes friction, improves collaboration and gives providers more autonomy in how they deliver care.
By addressing staffing shortages and burnout head-on, this model enhances satisfaction, retention and work-life balance, ensuring that caregivers can continue to provide exceptional care to patients.
A Scalable Path to the Quadruple Aim
The neighborhood hospital model offers a tangible way to translate the Quadruple Aim from aspiration into execution. By improving patient experience, advancing population health, lowering costs and supporting providers, it creates a framework for sustainable, community-centered care.
As health systems navigate financial pressures, workforce challenges and changing patient expectations, the neighborhood hospital model demonstrates that innovation doesn’t always mean bigger—it often means closer and more connected.
Vic Schmerbeck
Vic Schmerbeck is Chief Executive Officer with Emerus. In this role, his efforts are focused on health system partnerships, market penetration and clinical service lines in existing health system partnered markets. This includes the overall growth and development of Emerus’ business, in partnership with health systems. Vic’s background includes over 20 years of investment and merchant banking experience, particularly in the healthcare services and health system markets. He also has a long background advising and financing growth-oriented healthcare companies. Vic earned a bachelor’s degree in Finance and Real Estate from Southern Methodist University. He has served on several private company boards of directors, and he is active with numerous charitable endeavors involved in healthcare and at-risk children.
