Issue link: https://beckershealthcare.uberflip.com/i/490072
32 Financial Management Dr. Bauer forecasts 45 percent of organizations will continue to exist as they are organized today. They won't have to claim federal bankruptcy protection, but this 45 percent will exist precariously, he says. Just 25 percent will thrive, he says, by fixing the way care is delivered. "It's this theme that leads me to my optimism," he says, "About savvy inves- tors pushing people to do the right things to create the best healthcare de- livery system in the United States — which we know we can do — but we've never done it through government healthcare reform." The industry must fix the way healthcare is delivered because the sector will not continue to grow Due to the complexity of the PPACA and the uncertainty of the law's future, Dr. Bauer believes the best way to see change is through investments, not politics. "I think that the odds of [the PPACA] basically being eviscerated by the Su- preme Court in this session are in excess of 50 percent," Dr. Bauer says. "I think to proceed with the assumption the PPACA will play out is just folly." If the Supreme Court rules in favor of the plaintiffs in the King v. Burwell case, it may signal the possibility that politicians could find other issues with the law, changing how it will play out over the next few years. Even if the PPACA remains intact, resources are not available to implement the law as it was enacted, Dr. Bauer says. At the same time, an increasing number of insured Americans and an aging population is putting increas- ing pressure on the healthcare delivery system. While politicians continue to disagree over the law, Dr. Bauer believes the best way to move forward in healthcare is to focus on making the delivery system more efficient, and to motivate this change through strategic investments. Dr. Bauer suggests several strategies for investing in a future we cannot pre- dict. Investors must examine investment capacity to repay debt, he says, and conduct due diligence for possible misrepresentations in healthcare research. They must understand the unprecedented speed of change, avoid assump- tions and generalizations, expect successes and failures in all areas, and above all, focus on investments that improve the efficiency and effectiveness of healthcare. Healthcare needs to drive waste out of the delivery system, he says, and focus on individual patients and niche markets, expand services, reach consumers in new ways, recognize international market opportunities and remain flexible and open to innovation. n C M Y CM MY CY CMY K Becker's Conference Ad Mock-Up.pdf 1 3/2/2015 1:29:20 PM