Issue link: https://beckershealthcare.uberflip.com/i/170070
ory 48 Executive Briefing: Partnership Opportunities to Meet Reform's Demands Resources and risk sharing. In order for partnerships to flourish, each organization has to be committed to its success and able to devote sufficient staff and resources to leverage the full value of the collaboration. This requires transparent information-sharing and a clear understanding of the risks. Deeper integration holds the promise of greater potential cost sav- A history of innovation. The first ambulatory strategy. The first relocation of an entire AMC campus. The first hospital developments applying U.S. health care expertise in the Middle East What will we do for you? » Strategy » Facility and Capital Assets » Operations and Performance Improvement » Information Technology www.kurtsalmon.com ings and patient care management, but it also increases the level of risk in the partnership. Capturing created value. It is one thing to create patient value through improved clinical outcomes and reduced costs. It is quite another to capture that created value. Hospitals and health systems forging relationships with insurers will need to ensure the risk they assume in a newly formed relationship is commensurate with the financial benefits when they meet their agreed-upon targets. Providers must take caution that they do not enter into a relationship that leaves them overly vulnerable to downside risks and provides little upside benefit. Market response. Organizations seeking a partnership have to anticipate the likely responses from the community and from competitors left out of an arrangement. In highly consolidated markets, collaboration between two large players risks raising accusations of anti-competitive behavior. Even if no legal action is taken, which is rare, this can still be a distraction from achieving cost savings and improving patient care coordination. Conclusion It is our belief that market forces and federal and state policies will continue to push provider organizations to make deals and forge alliances with health insurers and physicians as they strive to make cost-containment efforts viable for their bottom line. In this environment of rapid change, health executives need to be nimble and prepared to act quickly and decisively as they consider new partnerships with insurers and physicians lest they risk erosion of their position along with their bottom line. n Rob Langheim and Anne Vars advise the nation's leading hospitals and health systems on their strategic challenges. Rob Langheim and Anne Vars can be reached at robert.langheim@kurtsalmon.com and anne.vars@ kurtsalmon.com. Subscribe Today! Becker's Hospital Review CEO Report E-Weekly To subscribe to the FREE E-Weekly, visit www.BeckersHospitalReview.com and click on the "E-Weekly" tab or call (800) 417-2035 Kurt Salmon is the consulting firm for healthcare organizations that refuse to compromise between mission and business success. We partner with clients to create uniquely relevant health care organizations that transform care delivery for the 21st century. Learn more at www.kurtsalmon.com.