Making the Most of Current Market Environments
The biannual Deloitte Health Care CEO Perspectives Study interviewed 31 healthcare CEOs to gain a better understanding of the successes, challenges, and responsibilities faced by health systems and payors. It is through the information they shared that we can better understand the current healthcare landscape for the United States.
Innovista Health Solutions thought leaders reviewed the study and provided the following analysis on the importance of understanding your organization’s position in the healthcare sphere and the factors that can drive future success if properly addressed.
One of the greatest drivers of change is the desire to keep up with the competition. A comprehensive understanding of the present market conditions, as well as an awareness of the geographic market that they operate in, is crucial to the continued success of healthcare organizations. The geographic presence of a healthcare organization can be viewed as either national or local and its market structure as either concentrated or fragmented. Determining your organization’s current position in the market as well as the position you would like to ultimately be in is critical to determine a growth strategy moving forward.
Below this text is a graphic from Deloitte’s 2019 study, which serves as a valuable tool for healthcare organizations to understand where they operate at present and where they would ultimately like to see their organizations.
Knowing the position a health system occupies is important, but simply knowing is not enough. Action is required to advance growth, and it is the responsibility of an organization’s leadership to drive these actions. Today’s leaders possess not only the drive but also the vision and knowledge required to avoid common pitfalls such as confirmation bias and tunnel vision.
In a world where innovation is critical to ensuring relevance and growth, health systems cannot afford to utilize antiquated planning techniques. Organizational leaders can use tools such as scenario analysis and simulation-based planning to combat potential barriers to growth. Previous strategies would suggest a streamlined approach to decision-making, where only individuals directly involved with the areas where changes were being implemented would have a voice. Engaging all decision-makers in these projection exercises ensures that individuals at all levels of an organization, including leadership team members and board members, are well informed regarding the implications of strategic decisions that are made. Understanding the impact of a decision at every level of a health system, from clinical operations to financial outcomes, allows leadership to build a more robust roadmap of an organization’s future where all outcomes and implications are accounted for.
Understanding the strategic roadmap as well as all potential results allows organizations to balance stable access to operational cash flow and investing in new growth opportunities. Again, agility is key in maintaining this balance, and the health systems that will ultimately succeed are those that employ teams that can conduct swift analyses of investment opportunities unhindered by incumbent strategies. Making the most of organizational scale, both present and projected, allows for a stable and scale-appropriate operational cash flow that can comfortably support these investment prospects. Formally embracing these new transformation processes protects a health system’s stability while still allowing for significant growth and innovation.
Successful management of more abstract factors, such as confirmation bias, and concrete factors, like cash flow, is essential for the continued success of incumbent health systems in this time of great flux. Dynamic planning and visionary leadership will ensure the continued evolution and ultimate success of health systems of all sizes.
Innovista Health Solutions is a population health management company that offers management and support services to guide independent physician networks, medical groups, and health systems through the ever-changing landscape of value-based care. With services and toolsets including network development, population health management, delegated services, data reporting, and strategic capital investments, Innovista is structured to help its clients succeed in their Commercial, Medicare, and Medicaid value programs. Innovista is a single resource for physician integrated models to gain access to innovative technology, expert programs, actionable data insights, financial resources, and growth opportunities, to navigate and succeed in value-based and/or risk-based contracts.
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