The economy of the United States Healthcare System has recently edged out Germany as the fourth-largest economy in the world. Like most significant economies, the US Healthcare System is replete with politics, complexities, and special interests, that prevent rapid change.

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The healthcare industry has always been quick to embrace new theories and policies for delivering and financing care, such as ‘population health’ and the ‘move to value.’ Unfortunately, while most of these ideas sounded good in concept, they failed in practice, and many early adopters paid a heavy price. This presentation provides a factual framework for current and future market conditions.

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Today, health systems, physicians, and other healthcare providers face unprecedented headwinds, including hyperinflation in employment and supply expenses, economic pressures from powerful commercial payers, and grossly underfunded government reimbursement. To be successful, an organization must focus on strategies that can be impactful. That is:

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        To accept the things I cannot change and the courage to change the things I can.

 

 Clearly, the nation’s health system is on an unsustainable economic course and disruption is inevitable. There will be winners and losers in the post-disruption healthcare world much like there were after the housing bubble. Those health systems that focus on the fundamentals of smart revenue growth, development of critical service lines, thoughtful expense management, asset rationalization, physician collaboration, etc. with a culture focused on measurement, urgency, and results will position themselves to be one of the winners.

 

​Most health systems have invested hundreds of millions (if not billions) of dollars in facilities, equipment, and highly specialized workforce to meet the needs of their community. They must ensure that their strategic focus optimizes the financial performance of their capital-intensive inpatient and outpatient services. Health systems cannot abandon their capital structure and emulate Amazon or Google, as many industry pundits imply. The content provided is based on decades of experience in the field working with physicians, negotiating managed care contracts, developing co-management structures, etc. The presentation provides practical recommendations to ensure an organization's short and long-term success during these turbulent times.