U.S. Healthcare System Mired in Maximizing Reimbursement, Not Patient Outcomes, Reveals Analysis by Alvarez & Marsal

System In Need Of Disruptive Transformation, Says A&M Healthcare Research Director

NEW YORK--(BUSINESS WIRE)-- Healthcare delivery in the U.S. is more focused on revenue maximization and reimbursement with insufficient attention being paid to patient outcomes, according to an analysis conducted by the Healthcare Industry Group of global professional services firm Alvarez & Marsal. The analysis takes a convergent view across the spectrum of the healthcare sector to better understand the potential impact of the Patient Protection & Affordable Care Act (PPACA).

“In looking at the healthcare industry holistically across multiple vantage points, the system is fragmented and requires disruptive transformation,” said David Gruber, director of research in A&M’s Healthcare Industry Group. “We have a population in which 84 percent of all healthcare costs occur in patients with chronic conditions, but the current system is focused on acute care, not chronic disease management. Misaligned stakeholders, excluding patients and payers, profit due to oligopolistic competition, limited price transparency and a focus on volume-based reimbursement rather than on value-based outcomes.”

The full report is available for download at http://www.alvarezandmarsal.com/healthcare/A&M_HC_CostPrecipice_Report.pdf

About Alvarez & Marsal: Changing the Business of Healthcare

With nearly three decades of experience providing hands-on support and results to organizations navigating times of change and challenge, Alvarez & Marsal is a global professional services firm that specializes in turnaround management, operational performance improvement and business advisory services. With a distinctive combination of experienced healthcare industry practitioners and world-class activist consultants, A&M works with management, boards of directors and stakeholders of not-for-profit and investor-owned healthcare providers, biopharmaceutical companies, payors, suppliers and others to improve operational, financial and clinical performance. A&M professionals bring a proven execution-oriented approach focused on delivering results through strategic advisory; financial, operational and clinical performance improvement; interim, crisis and contract management; turnaround and restructuring, mergers and acquisitions transaction and financial advisory; and compliance, governance and investigations.

To learn more about A&M, visit www.alvarezandmarsal.com.

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KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Health  Public Policy/Government  Healthcare Reform  Other Policy Issues  White House/Federal Government  General Health

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