Four Keys to Competition Under Bundling
3. Take the savings and invest. Now reallocate the resources you were going to spend on the closed program—salaries, equipment and the like—to the service lines in which you do have a competitive advantage. You might have a top cardiology program that desperately needs more resources to compete with competitors who are nipping at your heels or you might want to spend some of the cash on developing a strategy to buy or build complementary services, such as wellness centers and rehab centers. Part of your reimbursement under bundling will depend much more on how the patient progresses over a longer period of time, with penalties for rehospitalization.
4. Develop alliances and sub out parts of the healthcare continuum. Of course an alternative acquisition or organic growth into support services like rehab, imaging or wellness is building strong contractual relationships with providers who will take care of your patients once they leave your high-acuity facility. Even Geisinger, held up as a model of effective bundling of healthcare services, doesn't own its rehab facilities. They're owned by HealthSouth, but since the facility depends on Geisinger for about 80% of its patient census, it has a vested interest in keeping those patients, and Geisinger, happy with the care outcomes.
Granted, this is only a column and is not a substitute for your own due diligence in these matters, but I sense a feeling of helplessness among many of the leaders I talk to about being held hostage to a constantly moving target that is healthcare reform. By preparing in broad strokes for a future that is less procedure-based and more holistically based, you're doing the right work, even though you're not sure how the reimbursement landscape might ultimately change.
I'd love to hear from those of you who have retooled in the face of growing pressure to achieve value in healthcare. I'm sure there are lots of great ideas out there, and I'm excited to see how hospital leaders plan to transform their organizations strategically.
Note: You can sign up to receive HealthLeaders Media Corner Office, a free weekly e-newsletter that reports on key management trends and strategies that affect healthcare CEOs and senior leaders.
Philip Betbeze is senior leadership editor with HealthLeaders Media.
- Interventional Radiology No Longer a Sub-Specialty
- NFP Hospitals' Revenue Growth at 'All-Time Low'
- Acute Kidney Injury Gets New Focus
- Transforming Cancer Care
- Half of All Primary Care, Internal Medicine Jobs Unfilled in 2013
- mHealth Tackles Readmissions
- Evidence-Based Practice and Nursing Research: Avoiding Confusion
- CNO Leads $1M Charge for New Scrubs, Uniforms
- Sharp HealthCare Leaves Pioneer ACO Program
- MA an Insurance Proving Ground for Providers