For hospitals, the million-dollar question is, "How do we adapt to the changing needs of the healthcare industry and remain fiscally stable?" PwC's Health Research Institute articulates four potential answers to that question in a report published Oct. 4.
Here are the four business models identified by PwC's HRI as successful strategies for hospitals over the next decade:
1. The product leader. Under this model, hospitals are focused on delivering top-notch, advanced care. Best-in-class care is the core product. This model will focus on specific healthcare needs, particularly those that may be costly or complex. Whole patient care, low-cost options and a large footprint are not the focus. This model is focused on the product and the brand and will build scale using technology like telehealth. It relies on partnerships with other provider types for referrals and new patients.
2. The experience leader. This model is focused on building the best possible customer experience. It relies on patient retention and loyalty. This is built on offering consistency and convenience. A focus on wellness, patient preferences and cost transparency is key. Offering the lowest cost option isn't a top priority, so long as consumers understand what goes into the pricing and get what they are looking for.
3. The integrator. This business model focuses on offering the best value option to consumers via scale and scope. This is the largest of the business models and will likely require a multiregional or national presence. The top focus isn't the brand, however. Instead, it's about offering low-cost options, which will require working with providers outside of the hospital and aligning economic incentives to keep prices down.
4. The health manager. The last model puts a premium on the health of populations. Its focus is on keeping complex populations out of high-cost settings by addressing social determinants of health. This model requires a broad understanding of populations, a balance of risk and health equity, and partnership with the public sector. It will require hospitals to take on the broadest definition of healthcare to succeed, including mental, social and logistical supports for patients.
Learn more about PwC's analysis here.
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