Hospital leaders strategize on competing in a retail market
Even though hospitals are getting some balance-sheet relief from an improving economy and insurance coverage expansion, they’re struggling to adapt to high-deductible health plans, capitated contracts and valuebased payment models.
This new reality will be the focus of the American Hospital Association’s 23rd annual Leadership Summit, running July 23-25 in San Francisco.
Consumerism and price transparency were major topics last month at the Healthcare Financial Management Association’s Annual National Institute.
“Cost, convenience and access are integral to the patient experience,” said Lisa Goldstein, an analyst at Moody’s Investors Service, who spoke at the HFMA conference. Nontradi- tional providers such as CVS Health Corp. and Walgreen Co. now are competing directly with health systems for patients, particularly healthy young people who want fast access to providers.
Goldstein cited a system in the Midwest that’s specifically targeting millennials as part of its population-health management strategy. On the other end of the spectrum, health systems are gaining more patient volume from an aging population. The risk is that Medicare may squeeze payment rates to deal with those growing numbers of beneficiaries, she said.
The AHA conference sessions will address challenges such as competing in a retail environment, boosting labor productivity and implementing valuebased programs such as accountable care. Dr. Atul Gawande, author of Being Mortal, and Michael Lewis, author of Moneyball, are scheduled as keynote speakers.