About Kevin Kennedy

As a consultant since 1990, Kevin has assisted dozens of hospitals, health systems, and medical groups with solving their strategic, financial, and operational problems. He has particular expertise in operations improvement, hospital/physician relationships, and physician compensation planning. His most recent client experience includes assisting hospitals with service line and enterprise-wide strategic planning, working with health systems to define the operational relationships with member hospitals, and facilitating multiple transactions, including hospital/hospital and hospital/physician acquisitions. He is a frequent speaker before industry associations and has received the Yerger/Seawell Article of the Year award for outstanding contribution to professional literature from the Healthcare Financial Management Association (HFMA). Kevin holds a bachelor of science degree in business administration from The University of Arizona and a master of business administration degree from The University of Chicago.

Value-Based Enterprise Conversation Series: Rationalized

The trend of consolidation in the healthcare industry has enabled many health systems to expand their regional or national footprint and improve patient access. At the same time, these mergers and acquisitions have resulted in clinical congestion for systems that acquire operations with overlapping markets and services. Such redundancy can blunt the very advantages and efficiencies that health systems hope to gain by expanding their enterprises.

An effective rationalization strategy enables a health system to contain costs, maximize resources, and enhance the efficiency of care delivery. That may mean some tough decisions for health executives and Boards of Directors, but becoming an optimally rationalized system calls for leadership to guide their organizations into a new era of value-based care. Continue reading

Five Attributes of the Thriving Value-Based Enterprise

Since the early 1990s, conversations about healthcare reform have taken place almost entirely in the future tense. Transformational change was desired but distant, interminably stalled by divisive politics and endless disagreements about what a new healthcare model should look like. A reformed system remained a hypothetical scenario; something that might happen someday.

Now it’s 2015, and if you’re still talking about reform in the future tense, you may soon find your organization being referred to in the past tense. Continue reading

Regionalization: Do You Have A Plan?

Service distribution and optimization planning, including the design and execution of regionalization strategies, doesn’t occur through osmosis.  It necessitates a deliberate process that encourages innovative thinking and ensures candid discussion of critical issues and available options.  The numerous challenges of regionalizing health services are more easily conquered when guided by a well-defined framework.  Regardless of how services are or will be redistributed across a system, there are critical elements that should be integrated into any framework for regionalization. Continue reading

Regionalization: Tearing Down Silos Is Hard Work

Consolidation is resulting in service line duplication for health systems operating multiple hospitals within a given market area. In an attempt to remedy redundancy, systems are increasingly facing the need to regionalize services in order to deliver efficient, effective, and cost-conscious care. In this case, less really can be more. Continue reading

The Case for Regionalization

Hospital consolidation is reshaping the healthcare system. For many organizations and systems, merger and acquisition present opportunities for greater geographic reach, enhanced clinical capacity, increased care coordination, economies of scale, and a more robust asset base. But consolidation also creates a congested clinical environment for systems that acquire affiliates with overlapping services.  To clear the crowd, systems must evaluate the distribution of clinical services within given markets and explore alternative service configurations, including closures.

Enter regionalization. Continue reading