Healthcare is in the midst of groundbreaking change, moving from a B2B model to a B2C model, and from physicians and administrators as the boss to patients as the boss.
In every industry where consumers are empowered, there are winners and losers: organizations that adapt and those who, despite demand, do not. Here is my top ten list to get on the winning side.
1. Rapid expansion of community-based care models
The incentives that determine how healthcare providers get paid are changing. Under the current fee-for-service model, doctors get paid for every patient they see, every test they run, and every procedure they perform. The only incentive is to see more patients, run more tests, and do more procedures. We’re starting to see a move to value-based care, where hospitals and physicians are reimbursed for doing a really good job taking care of patients proactively, regardless of how many procedures or tests they run. And, ideally, the design of this business model really is to do less traditional, physical medicine and more community care.
Leaders like Oak Street Health in Chicago, Landmark Health in New York, and Iora Health in Boston are saying, forget the past. Their main business relies on a value-based model and they put their people, processes, and technology behind this concept. They’re showing you can absolutely win in this new model and we expect to see other providers follow suit.