Becker's Hospital Review

Sign up for the COMPLIMENTARY Becker's Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 6. Need for more physicians. This is the single most important issue facing hospitals, says Mr. Kerns. The huge demand for primary care physicians and the relatively small supply poses a great challenge for systems, particularly those in rural areas that have a harder time recruiting physicians. The Association of American Medical Colleges estimates the U.S. physician shortage will grow to more than 130,600 physicians by 2025. A November 2013 study published in Health Affairs found a distinct need for trained specialists to care for an aging population that is expected to nearly double from 2013 through 2025. Specialists will face higher demand than primary care physicians, according to the study, as the number of cardiology and rheumatology office visits is expected to increase by 18 percent, while urology and neurology will undergo a 17 percent increase in office visits and dermatology 16 percent. The demand for adult primary care office visits is expected to grow by about 14 percent. Brett Hickman, partner with PwC, said the country will not only need more physicians for the increase in chronic conditions, but in other subspecialties, as well. He sees disease patterns, such as those for obesity, cancer and infectious disease, changing. "I think we're moving back to the 1950s and 1960s, where we will see waves of infectious diseases," he said. The recent outbreak of meningitis at Princeton University is an example of the type of case Mr. Hickman described as, "incidences we need to learn, from the public health perspective, how to manage more effectively." Hospitals can make the most of the physician workforce by allowing their providers to practice to the top of their licenses or by exploring relationships with retail health clinics and other consumer-facing primary care services. But the real opportunity is a rich and large one, and Mr. Hickman says he's waiting for a disruptive innovator to grab it, take it large-scale and change physician care delivery for good. "Somebody is going to come in and make a major play that just totally disrupts the physician model. Our grandkids will laugh at us because of [this] fragmented, misaligned and inefficient historical care delivery model versus a more collaborative and connected model of tomorrow," says Mr. Hickman. The disruption will not only make care more accessible, but it will also incorporate the main tenets of population health — preventive care, wellness programs and public health initiatives. 7. Access to care. A November 2013 study from The Commonwealth Fund compared healthcare systems in 11 countries, looking at their affordability and accessibility. While the United States led the way in spending, it came up short for patient access. For instance, only 35 percent of American adults' primary care physician practices had arrangements for patients to see physicians or nurses after hours. In the Netherlands and the United Kingdom, that figure was 95 percent. Retail clinics present a wealth of opportunity for health systems and hospitals, many of which have been eying consumer-facing primary care with great interest, says Mr. Kerns. In 2014, hospitals will have to cater to consumer demands in an unprecedented way as more take on the costs of their care. Retail clinics are meeting an important demand in the healthcare landscape, as they are more convenient than primary care, and urgent care clinics are faster and open much later. "These are all things that appeal to consumers," says Mr. Kerns. "Clinics are not necessarily huge profit centers, but they are great doorways into the system." Retail clinic relationships also present a chance for hospitals and health systems to reinforce their population health networks. By collaborating with a consumer-facing provider, hospitals can better ensure their patients stay in-network — something that is invaluable under population health contracts. 8. Philanthropy. A source of substantial revenue to hospitals, aside from patient care, is philanthropy. Despite the sluggish economy, nonprofit hospitals and healthcare systems raised more than $8.9 billion through philanthropy in 2012, according to a study from the Association for Healthcare Philanthropy. That's steady from 2011 and an increase of more than 7 percent from fundraising revenue in 2010. 9 So, on average, hospitals aren't necessarily finding it more difficult to get charitable donations, but donors' focus is changing. More and more, hospitals and health systems are realizing that a successful fundraising campaign must be centered on more than assets, or specifically, construction projects. Many donors, especially those who are entrepreneurial, want to be seen as progressive when it comes to furthering strategic goals and transforming care delivery. "To make sure philanthropy is firing on all cylinders is pretty important," says Mr. Belokrinitsky of Booz & Co. "To be able to do that, you need to have a compelling story in the market. Donors want to give money for distinction, groundbreaking discoveries, quality of care and the patient experience — not just to keep the hospital lights on." 9. Employee relations. Layoffs are top of mind for many hospital and health system leaders coming off 2013, a year when several prominent and integrated health systems eliminated jobs. Although the reasons for layoffs can vary, from reduced volume to reduced reimbursement to a closed department, Mr. Hickman with PwC says they are sometimes the byproduct of what has become an overbedded, overstaffed industry. "A lot of successful health systems have had the luxury of an overstaffed type of environment," Becker's Hospital Review 5th Annual Meeting May 15-17, 2014 Swissôtel • Chicago, Illinois The Most Business- and Quality-Focused Meeting in the Hospital and Health System Arena 100+ sessions and 190+ speakers Register by April 1 for Early Registration Discounts Keynote speakers include: Barry Arbuckle, PhD Joe Torre Toby Cosgrove, MD Forrest Sawyer For more information visit, www.BeckersHospitalReview.com and click on "Conferences."

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