It's not surprising that an American College of Healthcare Executive survey found financial challenges are the top concerns for hospital CEOs.
After all the industry faces financial pressures from government funding cuts, Medicare and Medicaid reimbursement issues, declining inpatient volume and competition from other providers.
And then there is that little matter of shifting from fee-for-service payments to value-based payment models.
It's a delicate balance, as most organizations are firmly entrenched in the current payment system, yet may have some fee-for-service-contracts with insurers. How do they manage both models while coming up with a long-term plan and systems to support value-based purchasing?
Three simple words. Evolve. Integrate. Lead.
Well the words are simple but the action plan for achieving is slightly more complicated than that. But a new reseource outlines the steps CEOs can take to navigate these new waters. And it's a resource CEOs actually developed themslves.
For four years hospital executives at Huron Healthcare's CEO Forum have talked about the coming volume-to-value-shift. And this year the company compiled the insights from more than 100 health systems, hospitals, academic medical centers and physician practices in a new report, "Achieving Healthcare Transformation: Insights from the Huron Healthcare CEO Forum."
The CEOs who participated in the forum came up with a three-prong approach for success in the coming year, according to the report.
1. Evolve and transition revenue streams. Hospitals can no longer rely on the inpatient side of the business to bring in revenue. CEOs must take a strategic look at revenue, including alternative revenue streams, such as retail and employer-based clinics, nutrition and exercise centers, retail-clinic partnerships, telemedicine, and mail order pharmaceuticals.
2. Integrate to achieve clinical integration. Leaders widely agreed that clinical integration is essential to delivering high-quality, affordable care and achieving success in the post-reform environment. To achieve integration, CEOs must aggressively pursue physician alignment strategies, create new governance structures, and manage care beyond the hospital building.
3. Develop talent for the future. To hold on to top talent, the report says CEOs must develop long-term strategies for senior leaders. Leadership succession plans are vital to avoid a crisis three or four years down the road. While some organizations seek leaders with no healthcare experience, others want clincians to lead their organizations. Consider providing senior leaders with opportunities to invest in the organization financially, maintain close relations with these leaders and develop new approaches tfor retention plans.
Do you agree with this approach? As always, I welcome your thoughts in the comment sections below. - Ilene (@FierceHealth)