The economy of the United States Healthcare System has recently edged out Germany as the fourth-largest economy in the world. Like most large economies, the US Healthcare System is replete with politics, complexities, and cycles that impact various publics.
The healthcare industry has always been quick to embrace new concepts 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 theory, they failed in practice, and many early adopters paid a heavy price. This presentation provides a factual framework for current and future market conditions.
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 operate with STRATEGIC RESILIENCE. That is:
To be free of denial, nostalgia, and hubris; successfully anticipate and prepare for and respond to incremental
change and sudden disruptions; avoid the latest fast and strategic and operational mistakes.
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 manpower, and must ensure that their strategic focus optimizes the financial performance of their capital-intensive inpatient and outpatient services. Health systems cannot just abandon their capital structure and emulate Google as many industry pundits suggest. By partnering with clients to produce results (vs. sitting on the sidelines and pontificating theories), I successfully negotiated managed care contracts, lead negotiations on multiple ambulatory joint ventures, structured state-of-the-art orthopedic co-management relationships, and participated in physician group acquisitions, all of which increased market share and improved financial performance and positioned health systems for success. This presentation provides practical recommendations to ensure an organization's short and long-term success during these turbulent times by providing real-life, practical, proven solutions that produce results.