CHICAGO--(BUSINESS WIRE)--Huron Consulting Group, a leading provider of business consulting services, today released a new Huron Healthcare report entitled, “Innovation In Action: Insights On Achieving Healthcare Transformation” that provides insights from a recent meeting with Huron Healthcare executives and Huron Healthcare’s Advisory Council.
“The healthcare industry is facing unprecedented levels of change and complexity. Significant shifts in national and local economics, mounting requirements and expectations concerning the cost and quality of care, and major shifts in payment models are creating new pressures and imperatives”
“The healthcare industry is facing unprecedented levels of change and complexity. Significant shifts in national and local economics, mounting requirements and expectations concerning the cost and quality of care, and major shifts in payment models are creating new pressures and imperatives,” said Gordon J. Mountford, executive vice president, Huron Healthcare. “To address these major trends, hospitals and health systems need to achieve healthcare transformation—a top-to-bottom re-thinking of the healthcare enterprise. This rethinking must result in a 20-40 percent improvement in cost structure, as well as completely reimagining how to deliver high-quality, affordable care that improves the health of individuals and communities. This report provides practical ideas and insights executives can use to achieve true healthcare transformation.”
The report highlights three key areas around healthcare transformation, focusing in particular on revenue transition, clinical transformation, and the underlying strategic changes necessary to put innovation into action.
Integrating Value-Based Payment Models: New payment models—both government and commercial—are fundamental drivers of transformation. Volume and fee-for-service-based payment models are still a key component of revenue strategy for healthcare providers. However, as organizations continue to draw revenue from fee-for-service models, they must simultaneously be preparing for a larger percentage of their bottom line to be impacted by their ability to deliver value-based care.
“I advise clients to build value-based products only after they have a payer in place to buy them. And even then, they have to have a very clear sense of what their margin is going to be on a specific product.” - Dr. Jacque Sokolov, chairman and CEO, SSB Solutions, Inc.
Evolving Revenue Streams: To make decisions about pursuing new sources of top-line revenue and anticipate how value-based care and its attendant utilization decreases will impact bottom-line revenue, providers will need to understand both current and potential revenue sources with an exceptional level of specificity.
“I’m hearing two core questions from executives: how big do we need to get, and how many new initiatives do we need to take on? On the size issue, people are wondering whether they’re big enough to achieve economies of scale and get to a lower cost structure—and how that may buffer them if they want to assume risk. On new initiatives, they’re trying to figure out how much revenue they can generate from shared savings or risk assumption—and the answers are currently far from clear.” - William Dwyer, president, Dwyer HC Strategist, LLC
Achieving and Leveraging Clinical Integration: Creating a health system that can provide all the elements required to seamlessly deliver care across the care continuum is imperative for improving care quality, improving patients’ experience of care, and enhancing care coordination. It is also imperative for creating significant cost structure improvements—including utilization reduction, which will be required for success in accountable care organizations, bundled payment products, and other fixed-fee models.
“Everyone is looking for the answer to how to redesign inpatient care delivery. They are dying to figure out how to take 10 percent of the costs out of their system without having their doctors go crazy, and without having to lay off nurses.” - Nathan Kaufman, managing director, Kaufman Strategic Advisors, LLC
Defining the Role of the Physician in New Models: New business models require new ways of thinking about the part physicians play in the continuum of care, and in leadership roles. While physicians will remain a vital cornerstone of successful integration and value-based delivery, executives need to answer a new set of questions related to physician employment, aligning incentives, the role of other caregivers, and the definition of success in alternative payment models in order to fully engage physicians and leverage their contributions.
“Doctors are now and will still be at the heart of the clinical model. But to achieve true clinical transformation, all of the care team members—nurses, doctors, other healthcare professionals such as social workers, and even post-acute care providers—have to be working in a synchronized, coordinated, mutually accountable way.” - Dr. Andrew Ziskind, managing director and Clinical solutions leader, Huron Healthcare
Creating Alignment Between Mission, Strategy, and Market Demand: In an environment that requires the magnitude of change facing the industry today, a visionary strategy rooted in a clear understanding of market opportunities, organizational mission and capabilities is crucial. Success will require keeping that vision in front of all stakeholders and bringing them along the transformation journey.
“Even a CEO who has a very strong relationship with his or her board is taking a career risk in suggesting a major change or reduction in programs or facilities. But the reality is that asset optimization—aligning assets with mission and market demand—is essential for survival.” - James Orlikoff, president, Orlikoff & Associates, Inc.
Huron Healthcare’s Advisory Council members have decades of experience in the healthcare industry as hospital executives, physicians, and strategists. The full “Innovation In Action: Insights On Achieving Healthcare Transformation” report is available at http://www.huronconsultinggroup.com/Insights/Perspective/Healthcare/Innovation_In_Action.aspx.
Earlier this year, Huron Healthcare released the newest edition of the CEO Forum report. The report, which shares insights from hospital, health system and academic medical center CEOs about issues facing the healthcare industry, can be accessed at www.HealthcareCEOForum.com.
To speak with one of Huron Healthcare’s experts about issues affecting hospital leaders, please contact:
Jennifer Frost Hennagir
About Huron Healthcare
Huron Healthcare is the premier provider of performance improvement and clinical transformation solutions for hospitals and health systems. By partnering with clients, Huron delivers solutions that improve quality, increase revenue, reduce expenses, and enhance physician, patient, and employee satisfaction across the healthcare enterprise. Clients include leading national and regional integrated healthcare systems, academic medical centers, community hospitals and physician practices. Modern Healthcare ranked Huron Healthcare third on its 2012 list of the largest healthcare management consulting firms. Learn more at www.huronconsultinggroup.com/healthcare or follow us on Twitter: @Huron.
About Huron Consulting Group
Huron Consulting Group helps clients in diverse industries improve performance, reduce costs, leverage technology, process and review large amounts of complex data, address regulatory changes, recover from distress and stimulate growth. Our professionals employ their expertise in administration, management, finance, operations, strategy and technology to provide our clients with specialized analyses and customized advice and solutions that are tailored to address each client's particular challenges and opportunities to deliver sustainable and measurable results. The Company provides consulting services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, leading academic institutions, Fortune 500 companies, governmental entities and law firms. Huron has worked with more than 95 of the top 100 research universities, more than 400 corporate general counsel, and more than 385 hospitals and academic medical centers. Learn more at www.huronconsultinggroup.com.