Skip to main content

Booz & Company's 2010 Health Industry Perspective

Consultants at Booz & Company offer their 2010 Health Industry Perspective. According to the report, providers have the luxury of some time to change but need to get with it;
"A new era characterized by bundled payments and value for money is rapidly approaching; subsequent waves of healthcare reform will move providers aggressively in that direction. Already, the sector has been pursuing mostly appropriate strategies that will be in harmony with those goals. The biggest challenge for providers, though, may be envisioning the end game and defining their overarching strategies. A broader and more aggressive vision is needed.

"Although demand-side controls are off the table for this wave of reform, the fact remains that both the provision of healthcare services and lifestyle choices by consumers, not insurance, drive the vast majority of healthcare expenditures. Providers are well-positioned to improve both of these leading factors but have yet to commit to the sort of change that could accomplish it. (Providers) must advance an agenda of radically cutting cost, primarily through
prevention and by reducing variability in treatments and outcomes.

"The good news is (the) billions of dollars (supercharging) the nation’s development of EHRs and (promoting) seamless sharing of critical clinical information among providers, insurers, and patients. The reform package is also likely to further promote comparative effectiveness research programs to evaluate and recommend preferred prevention and treatment protocols for specific diseases. These two sets of tools are potentially powerful, but only if used as a means to an end. Ultimately, it’s the meaningful interchange of information among healthcare stakeholders, potentially through HIEs, that will make the difference. And while government funding may jump-start HIEs, no one has yet articulated a sustainable business model that would support their long-term survival and
Providers are encouraged to develop what the report calls "strong form" products, emphasizing "best care" pathways, outstanding clinical talent and solid oversight of patient care and cost. This approach fits well with value-based bundled payments and begins to position the organization for the possible return of capitated payment methodologies.

What's old is new and what's new is, well, likely to have been tried before.


Popular posts from this blog

Being Disrupted Ain't Fun. Deal With It.

Articles about disrupting healthcare, particularly those analogizing, say, Tesla's example with healthcare's current state, are frequently met with a chorus of (paraphrasing here) "Irrelevant! Cars are easy, healthcare is hard." You know, patients and doctors as examples of "information asymmetry" and all that. Well, let me ask you this: assuming you drive a car with a traditional internal combustion engine, how much do you know about the metallurgy in your car's engine block? I'll bet the answer is: virtually nothing. In fact it's probably less than you know about your own body's GI tract. Yet somehow, every day, us (allegedly) ignorant people buy and drive cars without help from a cadre of experts. Most of us do so and live happily ever after (at least until the warranty expires. Warranties...another thing healthcare could learn from Tesla.) Now, us free range dummies - impatient with information asymmetry - are storming healthcar…

Becoming Consumer Friendly In Five Easy Steps...Or Not

An article at offers hospitals 5 steps to becoming more consumer friendly.

If you still think there's a secret sauce to your hospital becoming more "consumer friendly," these 5 steps are as good a place to start as any.  Unfortunately, it's a little like that old Steve Martin comedy bit where he says he'll teach you how to be rich. The first step is to go find a million dollars.

Step 1 from the article is realizing that "...a Medicare beneficiary with chronic conditions is different from a young mom who brings her kids in for an annual check-up." This is market segmentation for beginners, and, yes, one size decidedly does not fit all. I'm sure your marketing team's been saying this for a while.

Steps 2-5: have a strategy, metrics, a champion and resources. OK. Hard to argue with any of those.

But those things, alone or together, won't overcome culture. They're important components to be sure, but insufficient without a …

My Take On Anthem-Cigna, Big Dumb Companies and the Executives Who Run Them

After last Friday's Appeals Court decision, Anthem's hostile takeover of, er, merger with Cigna has but a faint pulse. Good. Unplug the respirator. Cigna's figured it out but Anthem is like that late-late horror show where the corpse refuses to die. Meanwhile, 150 McKinsey consultants are on standby for post-merger "integration" support. I guess "no deal, no paycheck..." is powerfully motivating to keep the patient alive a while longer.

In court, Anthem argued that assembling a $54 billion behemoth is a necessary precondition to sparking all manner of wondrous innovations and delivering $2.4 billion in efficiencies. The basic argument appears to be "We need to double in size to grow a brain. And just imagine all those savings translating directly into lower premiums for employers and consumers." 

Stop. Read that paragraph again. Ignore the dubious "lower premiums" argument and focus on the deal's savings.

$2.4 billion saved from a p…