Hospital CEOs Must Create New Models of Care Delivery to Drive Growth Opportunities in Healthcare
Transitioning to ambulatory care providers push hospitals to adopt novel business strategies, says Frost & Sullivan Transformational Health Team
MOUNTAIN VIEW, California, June 14, 2016 /PRNewswire/ -- Preferences for outpatient, minimally invasive care is reducing inpatient volumes in American hospitals, compelling hospitals to re-strategize their clinical and operational models. Care provision is currently in the process of shifting from hospitals to ambulatory care providers; notably retail clinics, urgent care centers and ambulatory surgical centers. These services cost less, making them attractive to patients and insurers. As a result, hospitals are considering partnerships and collaborations with ambulatory care providers. This will enable hospitals to decongest emergency wards and reduce costs of care, while increasing patient volumes by leveraging these centers as referral nodes.
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New analysis from Frost & Sullivan, The Transformation of the American Hospital: 2015–2020(http://frost.ly/do), assesses how hospitals in the U.S. are responding to the reduction in Medicare spending, launch of the Affordable Care Act (ACA) and adoption of value-based payments.
For complimentary access to more information on this research, please visit: http://frost.ly/gt.
"The ACA, reduction in Medicare funding and reimbursements shifting from fee-for-service to value-based payments have impacted the way hospitals compete in the U.S. health system," said Frost & Sullivan Transformational Health Senior Research Analyst Tanvir Jaikishen. "Additionally, declining inpatient volumes and lowering reimbursements are fueling a wave of strategic acquisitions and partnerships aimed at increasing the patient base and improving negotiating power with insurers."
Moving forward, hospitals will leverage partnership models with ambulatory care providers to transition non critical patients from emergency wards to these providers. Hospitals will also use ambulatory care providers to share the burden of chronic care management. Patients with one or more chronic conditions can seek care from the nearest retail clinic. Uninsured patients can access inexpensive care and insurers can incentivize patients to seek care in these facilities as opposed to primary care clinics.
Additionally, hospitals are launching their own in-house insurance plans to compete with established insurers and attract a larger patient base. These initiatives are aimed at reducing hospital costs, increasing patient volumes and focusing on hospital core competencies.
"With the reduced reimbursements and budgets, hospitals can focus on provision of acute care management and pioneering cutting-edge treatment options aligned with academic institutions," noted Jaikishen. "Nano medicine, genetic medicine and 3D printing research will gradually shift from academic institutions to hospitals."
The Transformation of the American Hospital: 2015–2020 is part of the Advanced Medical Technologies (http://ww2.frost.com/research/industry/healthcare/advanced-medical-technologies) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the US and Western European Atrial Fibrillation Market, Future of Retail Care Delivery, 2016 Global Outlook for the Healthcare Industry, Analysis of the U.S. Breast Imaging Systems Market, The North American Patient Handling Systems Market, Development of Value-based Imaging, Artificial Intelligence in Healthcare, among others. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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The Transformation of the American Hospital: 2015–2020
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