Issue link: https://beckershealthcare.uberflip.com/i/144064
Executive Briefing: Hospital & Health System Strategy • trategic: Organizational focus specifiS cally on the current market realities and inability to anticipate future market trends. H umana is in the process of reinventing itself and its role in the future. They are moving from pure insurance company to a company invested in the well-being and health of the population. This is not without pain. Layoffs in 2010 have led to growth in 2012-2013 with new acquisitions in primary care and wellness services (not just insurance products). This organization seems focused to take the populations on a new path in improving their well-being (not just providing sick care).25 organizations and transforming the healthcare industry. Contact us to be a part of this effort. n Footnotes: 1 • reate care teams to effectively communiC cate and manage chronic disease through outreach and active care prevention and education • oordinate community outreach and ecoC nomic development activities to increase the overall health of the population and decrease cost of care • reate clinically integrated networks with C physician and non-physician providers Success for health systems over the next decade will depend on their ability to balance strategies in the four groupings of Growth, Effectiveness, Relevance and Capabilities. The market is in a period of dramatic upheaval. Ensuring an organization has well thought out strategies in each area requires thinking that is difficult to complete with the operational pressures facing health systems today. Health System Advisors was founded out of the desire of its people to dedicate their professional energies to advising leaders, advancing G raham, J. "Health Spending Slows, While Premium Growth Accelerates." National Center for Policy Analysis. Filed under New Health Care Law on February 1, 2012 2 L ee, J. "Dawdling Rebound: Analysts blame economy for elective surgery slump." Modern Healthcare. Posted: January 28, 2012 - 12:01 am ET 3 " Aging and the Healthcare Workforce." Population Reference Bureau. Today's Research on Aging | N o . 1 8 | December 2009 4 I n 2012, merger and acquisition activity for hospitals totaled $1.9 billion dollars not including sponsorship transfers and other non-asset transfer mergers. This is down from the high of $8.4 billion in 2011, although the number of deals increased. Irving Lewin Associates. The Healthcare M&A Report, January 2013. Some examples of capability strategies that health systems might pursue include: • evelop data analysis and population segD mentation models to predict disease and health needs 49 5 h ttp://www.fiercehealthfinance.com/story/ hospital-mergers-dont-guarantee-financial-benefits/2012-10-23 6 " Getting Return on Quality: Revenue Expansion, Cost Reduction, or Both?". Rust, Moorman, and Dickson. The American Marketing Association. 2002 8 h ttp://www.beckershospitalreview.com/hospitalphysician-relationships/unitedhealth-group-buys2300-physicians-in-california.html 17 H umana now owns Concentra, the largest urgent care provider in the US with reported plans to grow the sites by 10% this year 18 B urns, J. "Narrow Networks Found To Yield Substantial Savings." Managed Care February, 2012. 19 M oore. R. "Large Firms Drive Self-Insured Plan Growth." PlanSponsor.com. Posted on November 28, 2012 20 I bid. 21 S antilli, J. "Employer Direct Contracting." Knowledge Source. Posted on August 2012. 22 h ttp://money.usnews.com/money/blogs/ flowchart/2010/08/19/10-great-companies-thatlost-their-edge 23 h ttp://business.time.com/2011/07/19/5-reasonsborders-went-out-of-business-and-what-will-takeits-place/ 24 h ttp://www.cbsnews.com/8301-505143_16257363629/why-kodak-failed-and-how-to-avoid-thesame-fate/ 25 h ttp://ihealthtran.com/pdf/Mike%20McCallister%20Keynote%20Presentation.pdf I BID. 9 16 " You Can't Cut Your Way to Growth". Stark and Stewart. Inc.com. February 2012 7 Performing Hospitals". Edwards, Silow-Carroll, Lashbrook. The Commonwealth Fund Synthesis Report. July 2011 " The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value." Frederick Reicheld. 2001 10 " Differential Market Reactions to Revenue and Expense Surprises". Ertimur, Livnat, and Martikainen. Review of Accounting Studies. 2003 11 I BID. It's what we do: Advise Leaders, Advance Organizations, in order to Transform the Industry. 12 2 012 Health System Advisors' study of ambulatory imaging center rates in a major metro area We are strategy consultants. 13 h ttp://my.clevelandclinic.org/media_relations/ library/2012/2012-10-11-cleveland-clinic-addswalmart-to-bundled-payment-program-for-employees.aspx 14 " Medical Tourism: Consumers in Search of Value". Keckley, Underwood. Deloitte. 2010 15 " Achieving Efficiency: Lessons from Four Top- Health System Advisors is a strategy consultancy whose mission is to advise leaders, advance organizations and transform the healthcare industry. For more information contact HSA at (877) 776-3639, or email Kate.Lovrien@HealthSystemAdvisors.com or Luke.Peterson@HealthSystemAdvisors.com. HEALTH SYSTEM ADVISORS