The following article is written by Stephen R. Mason, Managing Partner of CSuite Solutions, LLC. This article first appeared in Becker’s Hospital Review and the full article can be read there.
Four strategies that can help health systems succeed now—no matter what happens in Washington, D.C.
Uncertainty is in the air for hospitals and health systems across the U.S., as policymakers grapple with how to make the journey from Obamacare to Trumpcare.
Yet no matter what happens in Washington, D.C., there are four key strategies that health leaders can focus on right now to simplify the decisions in front of them and position their organizations for future success.
Underlying these strategies is the reality that the current system is unsustainable. Regardless of what changes government implements, large employers are on an unstoppable march away from the current employee health benefit system toward one with a defined contribution—in much the same way employers migrated from traditional pensions to contributing a defined amount to an employee’s 401k.
Employers want to write a check, and have certainty about the amount of that check. They will supply the push to keep the healthcare system moving toward a business model that pays for value of care instead of volume of services. Here’s what I believe health system leaders need to concentrate on today to begin gradually shifting their weight toward a value-based care system while the dust settles on Capitol Hill’s reform efforts:
• Begin aligning physician incentives to value. Start at the smallest sub-atomic particle of the healthcare delivery system. That’s the moment when the physician writes the order. Incentives must be aligned to encourage the doctor to make a value decision at that moment instead of a volume decision.
The only way the value model works is some form of premium-based payment. The physician gets paid a set amount to care for a certain population for a year at defined standards of quality. That structure creates the incentive for physicians to make the day-to-day decisions that will achieve the highest quality care at the lowest possible cost.
Read the full article here – http://www.beckershospitalreview.com/hospital-management-administration/four-strategies-that-can-help-health-systems-succeed-now-no-matter-what-happens-in-washington-d-c.html