Roy Bejarano sits down with Victor Schmerbeck, CEO of Emerus, to discuss the evolution of neighborhood hospitals, how health systems are shifting their care models, and the role of private equity in modernizing healthcare delivery.

In this episode, Victor explains how Emerus has partnered with 12 major health systems, developing 40+ neighborhood hospitals to improve patient access, care coordination, and efficiency. He shares insights on why hospitals are decentralizing, the financial structure of these partnerships, and why smaller hospitals reduce costs while improving outcomes. This discussion is essential for healthcare executives, payers, and investors looking to understand the future of hospital-at-home models, outpatient expansion, and MSO partnerships.

Timestamps:

• [00:02] Introduction to Victor Schmerbeck and his leadership journey at Emerus
• [01:53]  The evolution of Emerus – from emergency care to health system partnerships
• [05:02]  Neighborhood hospitals vs. micro-hospitals – the shift to community-based care
• [12:56]  How neighborhood hospitals act as hubs, improving patient flow and referrals
• [18:17]  Why only 150+ neighborhood hospitals exist today and the case for expansion
• [24:46]  Hospitals are shifting towards performance-focused, cost-effective care
• [33:13]  The role of payers & value-based care in small-format hospital success
• [44:10]  How private equity supports hospital MSO partnerships and future growth

Key Takeaways:

• Health Systems Are Decentralizing – Large hospitals are shifting to smaller, community-based neighborhood hospitals to increase access, lower costs, and improve care coordination.
• MSO-Hospital Partnerships Drive Efficiency – Through white-label partnerships, Emerus helps health systems operate efficient, high-quality neighborhood hospitals, reducing readmissions and length of stay.
• Neighborhood Hospitals Fill a Critical Gap – Positioned between urgent care and tertiary hospitals, these facilities reduce ER overcrowding and streamline specialty referrals.
• Private Equity Is Fueling Healthcare Innovation – Investors like Welsh Carson play a key role in funding operational improvements, driving focus, and expanding care models.

Connect with the Guest:

Website: Emerus



About Victor Schmerbeck:

Victor Schmerbeck is the CEO of Emerus, the nation’s largest operator of neighborhood hospitals. With extensive experience in healthcare investment, operations, and system partnerships, he has led Emerus’ expansion to 40+ hospitals in collaboration with 12 major health systems. Under his leadership, Emerus has helped health systems increase access, reduce costs, and modernize acute care delivery.