Bracing for Reform Is not a Strategy

Healthcare reform has been a decades-long pursuit; however, participation in past efforts was urged with more of a gentle nudge than a clear decree.  The Patient Protection and Affordable Care Act (PPACA), on the other hand, puts teeth into payment reform by way of financial and legislative mandates that require organizational transformation.  Despite imminent change, a recent survey of hospital and health system executives published by the Healthcare Financial Management Association revealed that just 20% of respondents are “very prepared” and believe they have the necessary mechanisms in place to manage the conversion to value-based payment models.  In other words, far too many provider organizations are hanging onto fading productivity-based systems and have yet to position themselves properly for immediate or long-term changes.

Irrespective of beliefs or expectations regarding the effectiveness of payment reform, resisting change or simply bracing for it is not sustainable – nor is it a strategy.  Quite simply, business as usual will lead to no business at all.  To survive within the evolving healthcare landscape, hospitals and healthcare systems must find a way to anticipate and prepare for immediate changes coming down the pike while strategically positioning for the future.

Positioning strategies that are designed to drive organizations toward a desirable future state must account for critical reform implications, including the following:Key_Implications_14M02D07A comprehensive understanding of these critical implications is not only essential for evolving with the changing healthcare climate but pivotal in designing long-term positioning strategies and achieving an optimal organizational end state.

To learn more about positioning strategies, read the Insight on our Web site.

This entry was posted in Healthcare Reform, Network Formation, Physician Alignment, Strategic Planning and tagged , , , , , , by Steve Messinger. Bookmark the permalink.

About Steve Messinger

Steve, who is Managing Partner of ECG, has extensive experience in strategic and business planning, business development, mergers and acquisitions, and managed care. He assists health systems, academic medical centers, and medical groups with developing and implementing strategies that drive competitive advantage, and he is an effective adviser to boards and executives who are managing the challenges and implications of transformational change. Steve has been a featured speaker on healthcare strategy and hospital/physician relationship issues for a variety of professional associations, trade groups, health systems, and physician groups. He has been published in several healthcare journals, including Modern Healthcare, Modern Physician, hfm (a publication of the Healthcare Financial Management Association), Group Practice Journal, and Health Care Strategic Management. He earned a master of health services administration degree from The George Washington University and a bachelor of science degree in clinical sciences from Cornell University.

3 thoughts on “Bracing for Reform Is not a Strategy

  1. Pingback: The Consolidation Fallacy | ECG Management Consultants, Inc.

  2. Pingback: Five Key Components of an Optimal Organizational End State | ECG Management Consultants, Inc.

  3. Pingback: The Case for Regionalization | ECG Management Consultants, Inc.

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