Value-based care and hospital expansion: 3 factors for success


Hospital leaders must consider several factors as they seek to expand their market reach and transition to value-based models of care

A number of factors in the changing healthcare market could impact hospital growth, including the move to value-based care, write Michael N. Abrams, managing partner for Numerof & Associates in St. Louis, and Gordon Phillips, a consultant at the same firm, in an article for Hospitals & Health Networks.

They write that much of the future industry growth will likely come from health centers that currently offer value-based care and plan to expand to reach untapped areas.

“It’s never too early, though, for hospital executives with high-performing centers of excellence and start thinking about how to use them beyond their existing market footprint,” they write.

The authors offer hospital leaders several suggestions to ensure success, including:

  • Ensure your brand is credible. Reputations matter. It's much easier for big-name hospitals, like the Cleveland Clinic, to form partnerships to expand geographically. 
  • Find your target audience and define what they need. Bring new services to market that people want, Abrams and Phillips write, and don’t just expand for expansion’s sake. Set a defined price and tie it to the quality of the healthcare service, and make sure all stakeholders--including patients--are made aware of the service.
  • Measure outcomes that matter to patients. Infection rates and mortality rates are important, but so are measures like length of hospital stay and how quickly a patient can return to work after an illness. Hospitals that can provide positive statistics in these areas will attract loyal consumers.