Category: Integrated Healthcare Delivery Networks

Structure Follows Strategy: What’s the Best Organizational Model for Capitated Healthcare Systems?

“Structure follows strategy” is an old business motto coined by the business historian Alfred Chandler. The adage refers to Chandler’s observation that organizational structures should change to reflect an organization’s evolving corporate strategy. As strategy evolves, so too should the organizational structure. 

Healthcare Innovation is Happening in the “Valleys” Between Episodes of Illness

A few years ago (likely when the idea of paying for “bundles” of care came into fashion) somebody introduced the concept of patients and healthcare delivery systems interfacing in an “episodic” fashion. Roughly speaking, the idea was that patients interact with the healthcare system for defined periods of time as they become sick and that these “episodes” are interspersed ...

Failing at Health Reform: The Critical Importance of Both Motivation and Execution

Around the country, for every health system that is successfully navigating the early years of value-based healthcare, there are several others that are failing– even though many don’t yet realize it.   These failing organizations can’t or won’t restructure themselves to deliver effective, efficient and affordable care. I’ve come to the conclusion, after observing struggling systems, that ...

“Physician Alignment” Payments Won’t Fix Broken Healthcare Delivery Systems. Considering a New Path Forward.

A colleague at a hospital-based health system recently told me about “physician alignment” initiatives his employer was introducing. These included “co-management” deals (where doctors get per-patient incentives for on-time discharges, and high quality scores) and new salary models that adjusted based on various metrics. At the same time, he noted, his hospital was laying off ...

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The Growth of Doctor Networks: Will “Healthcare Islands” Appeal to Value-Seeking Millennials?

Around the country, doctors are leaving independent practice and joining large groups owned by healthcare systems. It’s a trend: the recruiting firm Merritt Hawkins predicts that if current growth continues, over 75 percent of newly hired physicians will be hospital employees within two years. There seem to be a number of reasons for this consolidation of ...