IDSs reconsider the viability of risk contracting

Area of Science:

• Health Services Research
• Healthcare Management

Background:

• Many Integrated Delivery Systems (IDSs) struggle with financial success in risk contracting.
• This has led some IDSs to question their mission as risk-bearing entities.

Purpose of the Study:

• To provide a framework for IDSs to determine whether to continue assuming financial risk.
• To guide IDSs in strategic planning for their future course.

Main Methods:

• The study emphasizes a strategic-planning process for IDSs.
• This process should involve all stakeholders, including provider constituents.
• Key considerations include market environment, provider commitment, core competencies, and risk contracting likelihood.

Main Results:

• A thorough strategic planning process can build consensus on market characteristics and IDS benefits.
• It helps define appropriate IDS roles, services, and functions.
• The process facilitates evaluation of resources needed for desired strategies and planning for future scenarios.

Conclusions:

• IDSs must critically assess their market position and capabilities before continuing risk contracting.
• Engaging all stakeholders in strategic planning is essential for defining future roles and ensuring resource alignment.
• Proactive scenario planning and clear communication are vital for navigating the complexities of risk-bearing.