What’s Keeping Healthcare CEOs up at Night?

We know that today’s CEOs face unprecedented challenges. New regulations and declining payments are two of the biggest hurdles, but what else keeps healthcare leaders up at night? I recently read a survey from the Deloitte Center for Health Solutions that I found very interesting.

The survey asked that very question of CEOs at large hospitals and health systems (greater than $1 billion in revenue). Unsurprisingly, the CEOs anticipate that value-based care (VBC) will reshape the future of healthcare. As hospitals are paid differently, profitability will be harder to achieve.

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Stretching Outside of the Four Hospital Walls

Not long ago, adding more patient beds was the principle capital expenditure for many health systems and hospitals. But in today’s environment of value-based care, that has changed.

Healthcare leaders are shifting their capital strategies. According to “Reevaluating capital spending strategies”, from Healthcare Finance News, “As healthcare reimbursement shifts from a system that rewards quantity of care to quality of care, the onus is on the CFO to determine where best to allocate financial resources.”

Now, in order to provide care outside of traditional settings, systems focus on outpatient care and deploy capital to acquire physician practices that grow their reach.  Systems are also more prudent about equipment purchases and work to share equipment between facilities.

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Integration: Early in the game of healthcare reform

At the recent annual J.P. Morgan Healthcare Conference in San Francisco—“where Wall Street meets healthcare to talk business,” according to HealthLeaders the themes ranged from preparing for the newly insured to continuing the expansion of clinically integrated networks. The conference included both for-profit and not-for-profit health systems discussing what had helped make them successful in this early stage of healthcare reform.

Clinical integration is a hot topic for any healthcare system, regardless of profit status in this early stage of healthcare reform. And that’s because success is dependent on it. As Chicago-based Advocate Health Care executive vice president Lee B. Sacks MD noted at the conference, “Clinical integration has allowed us to advance in value-based care.”

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