Many healthcare providers are falling behind and missing out on opportunities because they do not fully understand or appreciate their competitive base, say Robert Gamble and Kerry Shannon, Managing Partners, FTI Consulting, Inc. “To be successful in the future, they must be more assertive in their markets, and embrace new models and requirements,” Gamble adds.
From a solution provider company at the marcus evans National Healthcare CXO Summit Fall 2012 in Dallas, Texas, October 21-23, Gamble and Shannon discuss why healthcare organizations need to be more open to change to survive and prosper in the new healthcare environment.
With reforms and uncertainties surrounding the industry and reimbursement, how can Healthcare Chief Executive Officers (CEOs) stay ahead of the competition and transform complexities into true competitive advantages?
Robert Gamble: First, Healthcare CEOs need to understand not just who the competition is today, but where the new competitors will emerge from. They are missing out on opportunities and falling behind competitively because they are underestimating the assertiveness and influence of a variety of emerging players. Staying ahead of the competition will require trying new business models and taking risks.
Kerry Shannon: They must also better understand what those risks mean. Staying still can sometimes be the riskiest position. Keeping the different stakeholders happy and working productively can be a challenge, so they need to embrace change more proactively and consider some of the models that are available in other industries. Trying new things is going to be absolutely crucial. The banking, travel and retail sectors have some very relevant lessons for this industry. Innovative and creative retail models are starting to make inroads in certain care delivery areas, through outpatient diagnostic facilities that are more attuned to consumer needs and open after hours. Hospitals need to embrace these changes and integrate them into their cultures to ensure they thrive into the future.
How could they boost efficiency ahead of the changes?
Robert Gamble: Organizations should be obsessed with efficiency and improving value. They must address both their labor and non-labor components of cost. That means making sure the workforce is as productive as it can be, having monitoring systems to ensure that labor costs and staffing are adjustable, getting the best price and service on supplies and medical equipment, and making sure that their utilization is appropriate.
Kerry Shannon: As the Baby Boomers bring in new business, they will also place additional demands on organizations. This means that healthcare organizations must be a fully integrated entity with their physicians and care providers, in a meaningful way, at all levels of the business, and be prepared to expand capacity in areas of excellence or to provide new services demanded by customers.
Any final thoughts?
Robert Gamble: Ensuring their survival is the biggest challenge that healthcare organizations are facing today. This is no longer about just growing revenue, but about ensuring their existence and relevance. Health reform is here to stay, and with declining reimbursement, not every hospital will be able to provide all the services it currently does. There will not be enough reimbursement in the system for that. Organizations will need to focus on what they do best and let some services be provided by others. They have to look at themselves critically, embrace the change and look for new models.
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About the National Healthcare CXO Summit Fall 2012
This unique forum will take place at The Westin Stonebriar, Dallas, Texas, October 21-23, 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on physician alignment strategies, perfecting the ACO model, improving patient satisfaction and experience, cost-containment case studies, the future of the US healthcare system and much more.
Please note that the Summit is a closed business event and the number of participants strictly limited.
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