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Related Experiment Videos

Rightsizing the delivery system.

A M Zuckerman1, H J Finarelli

  • 1Chi Systems Inc, Philadelphia, PA, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|April 7, 1997
PubMed
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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.

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  • 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.