INSIDE THE WALLS

Patient Volume: The Seesaw Effect. Changing dynamics in the healthcare system will have a give-and-take impact on patient volume. While new payment models will decrease acute hospital utilization, the continued expansion of Medicaid and the insured population through the public exchanges will push additional patients through the doors. Additional factors feeding demand across the spectrum include an aging population and the ongoing rise of obesity and chronic disease. Although urgent care, better care management and redesigned primary care models will eventually deflect patients from the emergency department, the ultimate impact of these initiatives will take a while, requiring these areas of hospital to operate at (or over) capacity.


The People Factor. Change cannot occur without effective leadership, leading to an increased demand for clinical leaders who can help drive transformation. Participation in population health management will increase competition, as well as cost, for these capabilities. At the same time, there will be leadership turnover as mergers/consolidations occur and as systems evolve from "holding company" to "operating company" models (and sometimes back again). Finally, be on the lookout for union activity, which may be sparked in some regions due to cost pressures and reductions in force.

The Makeover. As administrators "rationalize" clinical service lines, they will strive to reduce variation in quality and cost across health systems. Physician alignment with these moves will be crucial. Simultaneously, consolidations and mergers will spawn a new wave of facility planning to repurpose or enhance the efficiency of existing structures.

The Rise of IT and Turf Wars. One area where capital will continue to flow: IT tools and resources. The need for new structures for data governance within health systems will be driven by the proliferation of population health tools and analytical systems. And in a related development, watch for a tug-of-war between CIOs and business unit leaders. Turf battles may ensue on selection of systems and data management.
About GE Healthcare Camden Group

With offices across the country, GE Healthcare Camden Group is one of the nation's leading healthcare business advisory and activation firms. The firm provides a broad array of healthcare consulting and implementation services such as strategic and business planning; care redesign and delivery; hospital operations improvement; mergers, acquisitions, and other transactions; physician-hospital alignment; clinical integration; and developing accountable care organizations. The firm works with clients to design strategy, formulate improvements, and achieve measureable and sustained outcomes by bringing thought leadership, advisory services, advanced analytics, and a world-renowned approach to change acceleration. GE Healthcare Camden Group has advised more than 2,000 hospitals, medical groups, outpatient facilities, and other healthcare organizations nationwide. In November 2015, The Camden Group was acquired by GE Healthcare (NYSE: GE) which now enables the group with global clinical and leadership expertise. For more information, visit us online at www.TheCamdenGroup.com.

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