Future of healthcare discussed at Redlands Forum

James Holmes, CEO of Redlands Community Hospital, highlighted the impact of healthcare policy, industry challenges and the hospital plan to expand locally.

Future of healthcare discussed at Redlands Forum
James Holmes speaks at the Redlands Forum on Jan. 22, 2025 at Esri. (Photo: Redlands Community Hospital)

For over a century, Redlands Community Hospital (RCH) has been providing medical care to those in Redlands and across the Inland Empire. James Holmes, president and CEO of the not-for-profit facility since 2005, spoke at the Redlands Forum on the Esri campus on Jan. 22, about the evolution of healthcare and its future trajectory.

Many U.S. presidents have taken an interest in healthcare, from Teddy Roosevelt, who sought to model the system after Germany’s, to Barack Obama, who introduced the Affordable Care Act (ACA) a century later—a “concentrated effort to cover entire populations," Holmes said.

The effects of these changes have been far-reaching. The U.S. government currently funds 67% of the total healthcare budget, while private insurance, charity, and bad debt account for the remaining 33%. Projections indicate that within the next 30 years, healthcare costs could consume 100% of the gross domestic product—“which is unsustainable.”

The ACA was implemented in response to 16% of the U.S. population—approximately 49 million people—being uninsured. This lack of coverage resulted in higher costs for those who were insured, as they effectively subsidized the expenses incurred by the uninsured.

James Holmes, President and CEO of Redlands Community Hospital. (Photo: Redlands Forum)

How U.S. health care compares globally

Compared to other nations, the U.S. spends more on acute medical care rather than preventive and social services, prioritizing physicians over therapies. Holmes also highlighted disparities in hospital bed availability per capita and differences in healthcare delivery models worldwide. “The U.S. spends twice as much but is seven percent below the life expectancy average,” he said, adding that the COVID-19 pandemic set back U.S. life expectancy by two decades.

Current challenges in healthcare include federal funding limitations, while the future is expected to be shaped by mergers and acquisitions. “Venture capital and private equity will continue to invest in healthcare,” Holmes said. The corporatization of healthcare may lead to reduced access and fewer resources, though new players will continue to enter the market. Large corporations such as Amazon and CVS will likely influence the industry’s future. However, Holmes emphasized that RCH remains committed to its mission.

“Healthcare is local. Healthcare doesn’t work with behemoths.”

Looking ahead

Redlands Community Hospital plans to expand its outreach to underserved areas through clinics and health fairs while also upgrading its facilities to meet updated earthquake safety standards.

In June 2022, the hospital opened an 8,000-square-foot Center for Cancer Care, increasing infusion therapy capacity and connecting patients with a network of physicians, social workers, and other care team members.

Now, RCH is preparing to build a new Radiation Oncology Center directly across the street from the main hospital at 245 Terracina Blvd., with an expected opening in early 2026. This project is made possible by a substantial gift from Jack and Laura Dangermond at Esri, a Redlands-based leader in GIS software, the hospital announced in May 2024. Their contribution will provide Inland Empire patients and families with access to cutting-edge cancer radiation treatments close to home.

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