New BDC Survey Finds Health System Leaders Will Continue Quest For Value Despite Market Uncertainties

MIAMI, May 18, 2017 /PRNewswire/ -- Despite current uncertainties in the healthcare market, heightened by the recent House passage of the G.O.P. healthcare bill, most health system leaders are sticking to their existing business strategies, and will keep their organizations moving towards value-based care, according to a new leadership survey by BDC Advisors, a national healthcare advisory firm. The survey findings, "Healthcare Strategy in a Time of Uncertainty", were published this week in the May-June issue of Healthcare Financial Management Association's Leadership magazine.  The interviews with a sample of healthcare leaders in nine states coincided with the introduction, withdrawal and subsequent passage of the AHCA, and indicated that despite regulatory uncertainty, the underlying drivers of the healthcare market remain essentially the same as prior to the Republican victory in November.

Leaders feel their organizations face many of the same challenges they did in 2011 when Obamacare was introduced: revenues not keeping up with cost growth is still an issue, quality and value remain ongoing concerns, and breaking even on government programs is still a challenge. While the potential capping of Medicaid funding and the fate of the Health Insurance Exchanges are wild-card issues, commercial insurance will remain the main avenue of growth, scale will remain critical, and the move towards value-based reimbursement will continue.

Even with the House passage of AHCA, significant uncertainty remains in an environment where organizations are "hunkering down" and focusing on "no-regret moves" while slowing down or halting new capital or infrastructure investments. Aamer Mumtaz, Dr. Alan London and Dr. David Fairchild, the study authors, expect that as a result, there could be a slowdown of the momentum created by the ACA towards care coordination and value-based care initiatives.

The authors concluded that the organizations facing the biggest challenges will be providers with significant exchange and Medicaid business, and that cutbacks in these already low-margin business lines are likely to have a disproportionately negative impact on those organizations.

ABOUT BDC ADVISORS
BDC Advisors is a national healthcare strategy consulting firm that transforms and grows healthcare organizations. Established in 1990, the firm's services include health enterprise strategy, payer/provider innovation, provider network development, organization design and development, population health, and strategic pricing and cost repositioning.

Media Contact: Dudley Morris, 312-286-4865, [email protected]

SOURCE BDC Advisors