Rightsizing the delivery system

In the next five to 10 years, managed care penetration in large metropolitan areas and small cities could reach 90 percent, while per-member-per-month premium payments could fall to an average of $100. At the same time market demand for acute care services is expected to decline, and demand for subacute and nonacute care services will rise sharply. Most health systems are not configured to meet these emerging market demands. But one health system analyzed its market opportunities and developed rightsizing options that could help it meet market demands and improve its cost-efficiency to ensure its survival.