Annual cost per covered life:
The shift from a “sickness” model to a “wellness” model requires a shift in mindset. If a health system is paid for keeping a defined population healthy then the measure of success is a focus on controlling costs and keeping patients out of costly hospital settings by keeping them healthy. The “annual cost per covered life” is a key metric in measuring success!
Lower cost settings:
In the past health systems were focused on inpatient care and spent billions on building large hospitals in an attempt to attract patients. In the new paradigm focused on wellness, the focus will shift to keeping the population healthy and out of the hospital with early intervention in lower cost settings.
Sustainability of the mission:
Organizations that can stand the test of time are those that have strong Mission Statements with clear direction and focus. Most Health System’s Mission statements speak to “improving the health of the community or creating healthier communities." The Mission Statement along with the Values of an organization are critical to its sustainability over time. This is the one area that can’t be compromised and shouldn’t change!
The healthcare organization that finds a way to be disruptive much like Billy Beane did, will survive. Healthcare organizations in general, tend to be very risk averse focusing on lean, six sigma, evidence based medicine, and standardization. The organizations that will thrive in the new paradigm will be the ones that think differently about their approach. I look forward to seeing who rises to the challenge. I do think the one’s that invest in innovation will be positioned for success and will be the one’s leading the charge and leading the change! Go Dodgers!
About the author: Joe Randolph is president & CEO of The Innovation Institute, a national healthcare incubator. Randolph previously served as a C-Level executive for a major health system and he's also a huge Dodger fan.Back to HCB News
