What Drives Your Success? Maybe Not What You Think

Philip Betbeze, August 17, 2012

If you lead a healthcare organization that's constantly touted as one of the highest quality or most innovative health systems in the nation, congratulations. Just make sure you're not fooling yourself about why that's the case, says Nate Kaufman, managing director of Kaufman Strategic Advisors, in San Diego.

Kaufman, who provides tactical and strategic advice to many of those very same systems, is counseling his clients about misattributing the underlying reason for their success to patient care or innovation. Rather, he suggests, success comes directly from the fact that they are currently able, through their market dominance, to leverage much higher rates of reimbursement than other institutions.

"The reason they're better is they're able to charge more than others," he says.

And that can't continue, he argues.

"It's funny when politicians hold out certain health systems as the model of the future only to find out later that they're getting reimbursed at level that's 60% more than the average hospital," he says. "I don't think that's universally known."

Philip Betbeze

Philip Betbeze is the senior leadership editor at HealthLeaders Media.

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