Within the last decade, the healthcare industry has certainly transformed. Hospitals and health systems have innovated new organizational strategies to thrive in the ever-changing landscape.
During a panel titled "How to Develop and Execute Strategy in Times of Changing Reimbursement," at the Becker's Hospital Review 5th Annual CEO + CFO Roundtable in Chicago on Nov. 8, 2016, three seasoned healthcare professionals discussed implementing key strategies to get ahead in today's complex industry.
Although the industry didn't present an easy circumstance 10 years ago, it offered a lot more stability.
"Ten years ago, we sort of had a sense of normalcy, less massive change, transformational change," said David Dyke, vice president of product management at RelayHealth Financial in Atlanta. "There is this pressure of the magnitude of the cumulative uncertain things that are going on now."
This uncertainty flooding through the industry today is driving organizational big bets and strategic attacks.
Tim Heinrich, CFO of Thorek Memorial Hospital in Chicago, jumped in, noting hospitals are more cost-conscious and strategic in decision making. "We have to think of every possible scenario," he said.
And long-term strategic planning now includes multiple variables, with a focus on population growth, increased access, cost pressures and outcomes.
"When you counter that strategic planning with 'you've got to change,' and every variable is pushing you in a direction that is not easy to pull off, so the focus on [strategy] is a lot more than it was 10 years ago," said Mike Minette, vice president of global strategy, respiratory and monitoring solutions at Dublin, Ireland-based Medtronic.
The same people that headed strategy a decade ago still have a seat at the table today, with the addition of physicians.
"The physicians are even more important than ever. They are always going to be important; they're the life blood," said Mr. Heinrich.
Traditionally, strategic planning occurred in the board room, but the market has permeated the process. Organizations now must consider how they will market to differentiate themselves in a competitive landscape, added Mr. Dyke. "I have to have volume to live long enough to make it to value," he said.
Partnerships are evolving, as well. Mr. Heinrich recommended organizations leverage partners instead of attempting to do everything in-house. That way, you write a one-time check, as opposed to putting someone on the payroll.
"There are a lot of vendors who say they can do it, so be wary of that," he cautioned.
Transformational leadership
The coined term, "transformational leadership," is not necessarily new to the healthcare industry. Immersed in a flood of change, organizations are seeking leaders that will adapt as opposed to sticking steadfast to consistency. Transformation requires both a changed mindset and changed capability, Mr. Minette said.
"Transformational leadership is going back to this question of what's our strategy? How much risk are we going to take? How are we going to be different in five years?" said Mr. Dyke.
Mr. Minette agreed, noting transformation is on the forefront of every healthcare stakeholder's mind right now.
"Transformational from my perspective is, you've got to have the reason and rationale to go there, and the hard part is, the dollars and cents have to work right away," he said.
HIT
Many organizations bought EMRs with the notion that the systems would perform all necessary tasks. The realization that organizations required more specialization in their technology has come to fruition, however.
"As we're transforming in the industry and moving to things more quickly, those big core systems are not as nimble as they ever were," said Mr. Dyke. These systems simply can't keep up with changes in reimbursement modeling or population health. "We still see significant opportunity in the vendor, to find those niches, where those changes need to be met with tools."
As long as organizations leverage IT for the right reasons, such as to drive better outcomes or enhance decision-making with the data, Mr. Heinrich supports purchasing the technology.
The next 10 years
The future will center on the patient, with patients becoming more empowered.
"I think we're going to see connected patients who understand their options," said Mr. Dyke. "We've shifted a significant amount of costs to patients through enormous deductibles and haven't necessarily given them the tools to make market-driven decisions."
Mr. Minette also predicts the industry will see more sophistication in analysis of data.
"I also think there's going to be this [movement from] East to West — emerging markets have an efficiency perspective that we can't fully comprehend yet," said Mr. Minette. "Lower costs of procedure or different models might actually apply [in our healthcare system] and wash up on our shores here."
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