InfographicBeyond the Tipping Point: Hospital Resilience Revisited
Challenges have intensified for U.S. hospitals. Rising costs, talent shortages and an unclear legislative agenda, along with increased partnerships, continue to roil the sector.
Tipping Point: Hospital Resilience in a Perfect Storm
U.S. hospitals are at a tipping point. Fallout from the Affordable Care Act, a shift from fee-based to value-based business models, talent shortages and the need to put data to work to improve care are significant challenges.
- Business model innovation
- Putting data to work
- Focus on talent
Business model innovation
[In healthcare] to change the business model, everything has to change in unison.-- Clayton Christensen, Kim B. Clark Professor of Business Administration, Harvard Business School
- The most critical challenge is the shift from fee-based to value-based payments, say 71% of EIU survey respondents.
- 61% say the shift has exacerbated pressures on the hospital value proposition.
- 54% agree that cuts in reimbursements/fees have made it more important than ever to find efficiencies to optimize every dollar.
- Only one in five of respondents expect their business model to remain the same in the next three years.
- Only one-half say they are well prepared to address the challenges facing hospitals.
- It took 10-13 years to embed the cultural changes needed for Montefiore Hospital System’s shift from fee-based to value-based healthcare.
(Source: EIU in-depth interview with Steven Safyer, CEO, Montefiore Medical Center.)
Putting data to work
By 2020, the hope is that a doctor can take your personal attributes—age, co-morbidity, biomarkers—and combine that with what we know about management at scale to figure out exactly how to take care of you in a completely customized, instantaneous fashion.--Amy Abernethy, Chief Medical Officer, Flatiron Health
- 60% say Big Data is transforming patient-related opportunities.
- 57% call it a potential game changer for operational performance.
- 63% say the value of data which hospitals hold remains largely untapped.
- 46% in long-term individual patient disease prevention and care
- 41% finding and demonstrating value added from processes and procedures
- 41% monitoring performance of individual medical personnel
Focus on talent
"High pay alone is a short-lived strategy. You have to get beyond that: what kind of culture do you have? How do you value employees? How do you get employees engaged in helping chart what they do?" --Lloyd Dean, CEO, Dignity Health
- 69% say strategic talent management will be key to staying competitive.
- 74% say their organization needs to pay more attention to retaining and attracting the best talent.
- Two-thirds (65%) see an aging workforce presenting a problem in the long term, driven by talent costs and the need for newer areas of expertise.
- Leading strategies for talent management:
- 51% linking performance/quality-of-care metrics with retention decisions
- 48% improved pay
- 46% ensuring that the organization has market-leading total compensation packages
- One in 3 practicing U.S. physicians is over the age of 65. By 2025, the shortfall in medical, surgical and other healthcare specialists could reach between 28,200 and 63,700.
Source: American Association of Medical Colleges.
This article was written by The Economist Intelligence Unit and sponsored by Prudential. For more information call Prudential Retirement at 800-353-2847
This article was written by The Economist Intelligence Unit and sponsored by Prudential. For more information call Prudential Retirement® at 800-353-2847 or visit Healthcare.PrudentialRetirement.com.
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