With hospital consolidation on the rise, 43 percent of C-Suite executives thought that having a quality clinically integrated organization is the most successful growth strategy to healthcare transformation, according to to recent polling conducted by MedAssets at its annual Healthcare Executive Forum.
Results from the event polling show more than 75 percent of attendees indicated that their healthcare organization is engaged in transformational initiatives in the face of healthcare reform economic pressures. Nearly 60 percent of respondents cited they are experiencing declining Medicare reimbursements, managing the impacts of Medicaid expansion and state exchange enrollment, experiencing increased pressure from private payors and more regional competition. (Marketwatch, 2/11/14)
Clarity of Strategy and Execution Critical to Successful Healthcare Transformation
71 percent of attendees stated that clarity of strategy and execution was critical for success. Additional key takeaways from the event include:
- Eighty-nine percent of attendees reported their health systems will acquire and engage in non-hospital growth strategies over the next two years, up from 63 percent in 2013
- Over the past three to five years, 59 percent of attendees indicated that physician groups have been the most important partner, and 48 percent of attendees are confident this will remain the same in the next five years. Thirty-four percent of attendees, however, indicated insurance companies will emerge as the most important partner.
- Fifty-five percent of the 150 attendees reported a decline in operating margins year over year in fiscal year 2013 as opposed to 26 percent in fiscal year 2012. The top reasons for the dramatic dip are attributed to shift in payor mix and reimbursement reduction.
“Our industry is experiencing dynamic change, requiring providers to prepare for a new market where reimbursement is based on value vs. volume,” said John Bardis, chairman, president and chief executive officer, MedAssets. “As the Affordable Care Act takes shape, providers need to transform their organizations into more cost effective, clinically aligned and efficient health systems.”
