Is there an imbalance between your hospital’s daily operations and payment model? What your healthcare system achieves and how you get compensated are rapidly changing in today’s medical environment.

According to a recent report done by the American Hospital Association titled “Your Hospital’s Path to the Second Curve: Integration and Transformation,” hospitals are shifting from the ‘’first curve’’ of volume-centered care to a ‘’second curve’’ that expands upon value-based care models.  The report touches on the fact that this transition can be extremely difficult for healthcare leaders to carry out.

The AHA outlines 10 questions a health organization should consider before making this shift in care:

  • What are the primary community health needs?
  • What are the long-term financial and clinical goals for this organization?
  • Would the organization be included in a health insurer’s narrow/preferred network, based on cost and quality outcomes?
  • Is there a healthy physician-hospital organization (or business model that aligns physician in private practice with hospitals and hospital-employed physicians)?
  • How much financial risk is the organization willing or able to take on?
  • What sustainable factors differentiate the organization from current and future competitors?
  • Are the organization’s data systems robust enough to provide actionable information for clinical decision making?
  • Does the organization have sufficient capital to test and implement new payment and care delivery models?
  • Does the organization have strong capabilities to deliver team-based, integrated care?
  • Is the organization proficient in program implementation and quality improvement?

The AHA’s report also highlights the pressures that are placed on hospitals, such as financial risk and heightened accountability. The AHA lists these five paths below for hospitals to use as a framework when beginning their transition:

  • Redefine to a different care delivery system. This can be achieved by a willingness to change towards a long-term care practice.
  • Partner with a care delivery system or health plan for greater horizontal or vertical reach, efficiency and resources for at-risk contracting. Hospitals should consider merging with another healthcare entity to create a strategic alliance and build multi-brand power.
  • Integrate by developing a health insurance function and/or services across the continuum of care. Create a long-lasting behavioral health, home health, post-acute, long-term or ambulatory care system for your hospital to thrive.
  • Experiment with new payment and care delivery models. Try out new payment models such as bundled payments and attempt to be more accountable with your delivery.
  • Specialize to become a high-performing and essential provider. Find a specialty medical service that your hospital can be known for, such as being a children’s hospital or rehabilitation center.

If you’re in healthcare, insurance, technology or other professional services industries, and need help with a PR, marketing or social media campaign, contact Scott Public Relations.

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