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Rightsizing the delivery system.
1Chi Systems Inc, Philadelphia, PA, USA.
Summary
Managed care will dominate healthcare within a decade, shifting demand from acute to non-acute services. Health systems must adapt their strategies for survival and cost-efficiency.
Area of Science:
- Healthcare Management
- Health Economics
- Healthcare Systems Analysis
Background:
- Projected increase in managed care penetration to 90% in urban and rural areas within 5-10 years.
- Anticipated decrease in per-member-per-month premium payments to an average of $100.
- Significant decline in market demand for acute care services.
Purpose of the Study:
- Analyze emerging market demands in healthcare.
- Evaluate the configuration of existing health systems.
- Identify rightsizing options for health systems to ensure survival and improve cost-efficiency.
Main Methods:
- Market opportunity analysis for a specific health system.
- Development of rightsizing strategies tailored to future market needs.
- Assessment of cost-efficiency improvements.
Main Results:
- Identified a mismatch between current health system configurations and future market demands.
- Developed actionable rightsizing options for the analyzed health system.
- Demonstrated potential for improved cost-efficiency through strategic adaptation.
Conclusions:
- Health systems must proactively adapt to the rise of managed care and shifting service demands.
- Strategic rightsizing is crucial for health systems to remain viable and cost-efficient.
- Failure to adapt to market changes poses a significant survival risk for healthcare providers.