A health system that is scaled can support services and initiatives that individual organizations cannot. Economies of scale enable systems to spread overhead across a larger revenue base, strategically utilize resources and deploy capital, and succeed in more dynamic contracting models.
Healthcare executives and hospital boards across the country are realizing that they must build greater scale within their organizations if they want to remain competitive. Yet many healthcare leaders are still trying to determine how exactly to achieve the desired scale.
Kevin Forster is the leader of ECG’s Healthcare – San Francisco practice, and his 15-plus-year consulting career has emphasized hospital strategic planning and business development, physician/hospital relationships, and detailed financial and operational assessments of medical groups/physician networks. As healthcare organizations attempt to position themselves to deliver care in a value-based environment, their leaders engage Kevin to address key issues related to scale and strategic positioning, with matters ranging from acquisitions/partnerships to geographic expansion.
As part of our ongoing series of conversations about the value-based enterprise, Kevin shares his insights on the advantages of scale and the challenges that health systems encounter as they strive to achieve it. Continue reading