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Annual Industry Outlook

News  |  By Jonathan Bees  
   February 01, 2017

The healthcare industry faces an unprecedented number of challenges in 2017, including the move to value-based care, high infrastructure investment costs, and cost containment requirements.

This article first appeared in the January/February 2017 issue of HealthLeaders magazine.

As the healthcare industry continues its steady metamorphosis from a fee-for-service to value-based model, the stakes keep getting higher for those lagging behind. While providers at the forefront of the trend certainly have their own risks to contend with, such as the need to make large investments in both infrastructure and care delivery enhancements that depend on still-evolving payment models for repayment, providers trailing the trend run the risk of falling too far behind to catch up.

Annual Industry Outlook: The Road to Value-Based Care

There are no quiet waters in which to seek refuge—the healthcare industry is facing a multitude of challenges. Along with managing the transition to value-based care, provider organizations must focus on enhancing care coordination, optimizing financial performance, and driving organizational performance in order to remain viable. Aggressive cost containment programs are also critical, as well as initiatives for expanding market share and increasing revenue through outpatient expansion.

Transition to value-based care
While progress is being made, the pace of the transition to value-based care is still slow moving. According to the 2017 HealthLeaders Media Annual Industry Outlook Survey, two-thirds of respondents (66%) say that their organizations are either fully committed and underway with the transition to value-based care (35%) or have experimental or pilot programs underway (31%), indicating that value-based care is a priority for most providers. Another 17% say they will pursue value-based care but have not begun yet. While 13% are not committed and only examining how or whether to pursue, only 2% of respondents say they don't plan to pursue value-based care.


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Jonathan Bees is a research analyst for HealthLeaders.

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