The Leader’s Board - Health System...
Transcript of The Leader’s Board - Health System...
The Leader’s Board
Transforming Your Health System: Incorporating Latest Trends and Implications into Your Plan
April 21, 2016
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
Our teams at Health System Advisors facilitate new thinking as health systems navigate the future
● Competitive positioning
● Mergers, acquisition, and partnerships
● Service lines
● Physician plans
● Contract Urgent Care strategy, development and operations with our subsidiary Urgent Care Partners
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Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
TRANSFORMING Your HEALTH SYSTEM: Incorporating Latest TRENDS and IMPLICATIONS into Your PLANNING
Our goal is not to describe every strategic planning model in place today, but instead address the trends and implications we see changing health system planning over the next several years
Our Topic… Advances in Transformative Strategic Planning
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What do Strategic Plans Look Like?
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
What are today’s Strategic Plans Incorporating?
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The major trends fall into two categories:
1. Changes to the PROCESS by which strategic plans are being developed
2. Changes of the things on which the strategic plans FOCUS
How Can We Keep Track of the Changes?
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Strategic Planning
Technical
Outside-In
On-Line Data Gathering
CharacteristicSegmentation
CrowdsourcingInput
Big Data
Classic vs. Adaptive
Top-down vs. Bottom-up
DifferentialOutlook Horizons
Data Visualization
2. New Planning Processes
1. New Areas of Focus
StrategicDissonance
Themes
Market Relevance
Capabilities
CustomerRedefinition
Industry Positioning
Market Positioning
ApproachTrends
DriversTech-enabled
care
FinancingSystems
Non-TraditionalCompetitors
Population Expectations
Demographics
InformationAvailability
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
New drivers are changing how health systems must POSITION and ADAPTtheir strategy
> Generally expectations for SERVICE and CONVENIENCE are rising
> TRUST in traditional health systems is declining
> VENTURE CAPITAL and ENTREPRENEURS are entering the provider industry segment and changing the face of competition
> Increased consumer PRICE SENSITIVITY and thus pricing pressure
> Continued shift towards LONGITUDINAL PAYMENT models
New and Emerging Drivers
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Demographics
1. Aging
2. Ethnicity
3. Migration
Population Expectations
1. Consumerism
2. Mobile access
3. Immediacy
4. Customization
Drivers
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Non-Traditional Competitors
1. Entrepreneurs
2. Fortune 500
3. Payer-Provider
Drivers
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Information Availability
1. User ratings and reviews
2. Wait times / availability
3. Treatment options
4. Price and Quality Transparency
Drivers
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Tech-Enabled Care
1. Virtual care and telemedicine
2. Personalized medicine
3. Advanced diagnostics
Drivers
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Demographics
1. Aging
2. Ethnicity
3. Migration
Drivers
11.7xAverage number of movesin a lifetime in 2007
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Financing Systems
1. Risk and shared savings contracts
2. High deductible plans
3. Concierge / membership models
Drivers
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Information Availability
1. User ratings and reviews
2. Wait times / availability
3. Treatment options
4. Price and Quality Transparency
Financing Systems
1. Risk and shared savings contracts
2. High deductible plans
3. Concierge / membership models
Tech-Enabled Care
1. Virtual care and telemedicine
2. Personalized medicine
3. Advanced diagnostics
Non-Traditional Competitors
1. Entrepreneurs
2. Fortune 500
3. Payer-Provider
Demographics
1. Aging
2. Ethnicity
3. Migration
Population Expectations
1. Consumerism
2. Mobile access
3. Immediacy
4. Customization
Drivers
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
Emerging themes emphasize the health systems’ INDUSTRY ROLE
> The definitive lines between traditional roles is BLURRING
> Definition of the CUSTOMER is changing
> The REQUIREMENTS and EXPECTATIONS of the healthcare product is changing
> Sources of revenue are shifting to LONGITUDINAL models
> CAPABILITIES are moving from growth to include effectiveness and adaptation of new models
As a result, emerging strategic themes attempt to address the redefined customer, redefined position, and redefined requirements for success
New and Emerging Themes
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Redefined Customer
1. Patient vs. consumer
2. Population vs. individual
3. Episodic vs. continuous
ThemesWho is the customer?
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Themes
Market Relevance
1. Access
2. Convenience
3. Pricing
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ThemesCapabilities
1. Consumer health management
2. Ambulatory / Retail
3. Longitudinal quality
4. Analytics and care management
Centura Health Neighborhood Health Center
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Themes
Industry Positioning
1. Industry share
2. Vertical integration
3. Alternative partnership models
Aurora Health and Anthem
form new Insurance Company
Centura Health and DaVita HCP
form FullWell
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ThemesMarket Positioning
1. Market share
2. Geographic footprint
3. Scale economies
Aggregate
Assimilate
Integrate
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Capabilities
1. Consumer health management
2. Ambulatory / Retail
3. Longitudinal quality
4. Analytics and care management
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Market Relevance
1. Access
2. Convenience
3. Pricing
Redefined Customer
1. Patient vs. consumer
2. Population vs. individual
3. Episodic vs. continuous
Market Positioning
1. Market share
2. Geographic footprint
3. Scale economies
Industry Positioning
1. Industry share
2. Vertical integration
3. Alternative partnership models
Themes
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
Emerging approaches to planning emphasize the RAPIDLY CHANGINGindustry dynamics
> Define how the health system is VIEWED in the current and future environment is a clear focus of new approaches
> Working towards a PURPOSE rather than a direction towards capabilities rather than detailed roadmaps
> Incorporating PARTNERS and relationships with other organizations to achieve the organization’s vision
New and Emerging Approaches
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Approach
Classic vs. Adaptive
1. Direction vs. purpose
2. Predictions vs. pilots/experiments
3. Data collection vs. pattern recognition
4. Roadmap vs. capabilities
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Approach
Top-Down vs. Bottom-Up
1. Crowdsourcing
2. Leadership bounded direction
3. Strategy and Integration
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ApproachOutside-In
1. Market’s view of the health system
2. Industry’s view of the health system
3. Patient, consumer, purchaser perspectives
Your View of You
Their View of You
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Approach
Differential Outlook Horizons
1. Short-term actions
2. Long-term purpose
3. Differential horizons with partners
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Strategic Dissonance
1. Active white space identification
2. Timing
3. Willingness to live in uncertainty
Approach
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Top-Down vs. Bottom-Up
1. Crowdsourcing
2. Leadership bounded direction
3. Strategy and Integration
Classic vs. Adaptive
1. Direction vs. purpose
2. Predictions vs. pilots/experiments
3. Data collection vs. pattern recognition
4. Roadmap vs. capabilities
Outside-In
1. Market’s view of the health system
2. Industry’s view of the health system Strategic Dissonance
1. Active white space identification
2. Timing
3. Willingness to live in uncertainty
Differential Outlook Horizons
1. Short-term actions
2. Long-term purpose
3. Differential horizons with partners
Approach
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
New tools are creating a host of ways to collect and view BIG DATA and changing how we view the market and test future predictions
> Mapping and GRAPHIC TOOLS are shifting how data is synthesized and viewed
> People are becoming used to having a CUSTOMIZED EXPERIENCE based on their unique needs resulting in the need to more fully understand non-clinical elements of the patients
> Internet and social media tools creating new ways to REACH and UNDERSTAND unique population segments
New and Emerging Technical Tools
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Technical
Big Data
1. Clinical and economic
2. Demographic and usage patterns
3. Predictive pattern analytics
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Technical
Crowdsourcing Input
1. Internal
2. External
3. Implementation
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Technical
On-Line Data Gathering
1. Amazon’s M-Turk
2. Use of social media to target data from distinct populations
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Technical
Characteristic Segmentation
1. Demographic
2. Payer
3. Disease
4. Access and delivery platform
Primary Care Patterns 2015
Preferred Delivery Model
Primary Payer
Patient Age
Total Disease Load
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Technical
Data Visualization
1. Graphics display
2. Mapping and geocoding
Likelihood of Private Payer
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On-Line Data Gathering
1. Amazon’s M-Turk
2. Use of social media to target data from distinct populations
Characteristic Segmentation
1. Demographic
2. Payer
3. Disease
4. Access and delivery platformData Visualization
1. Graphics display
2. Mapping and geocoding
Crowdsourcing Input
1. Internal
2. External
3. Implementation
Big Data
1. Clinical and economic
2. Demographic and usage patterns
3. Predictive pattern analytics
Technical
Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
How has your FOCUS and PROCESS changed in the last several years?
What THEMES are emerging in your plans?
How are you incorporating the BIG DATA and ANALYSIS?
How are you seeking to evaluate your MARKET AND INDUSTRY POSITION?
Who are your most important CUSTOMERS and COMPETITORS and how are your SEGMENTING them?
Discussion and Questions
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1. The healthcare industry is under tremendous pressure, mostly from the OUTSIDE
● It is easy to miss the emerging trends because they often come from outside the industry where we are typically less familiar
2. Health systems must take into account new DRIVERS to adapt the FOCUS or risk being outmaneuvered by competitors you never expected
● It’s not usually the devil you know that gets you…..
3. INNOVATIVE approaches and tools are helping organizations create more effective planning processes
● The tools are moving as fast as the changes to the process allowing the “5-year plan” to become a continuous process towards a long-range purpose/goal.
Lessons Learned
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Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
The static 5-year planning process is DEAD
> The market is moving too fast
> Competitors are not only unpredictable, but also undetected until they are in your face
The data available is OVERWHELMING
> Data will not decide purpose. Leadership must lead
> Predictive data is helping provide visibility to the future, though only in some areas
The role of the strategic planner is shifting from prognosticator to FACILITATOR, PATTERN RECOGNIZER, and TRANSLATOR
Bringing All it Together
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Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
Strategic Advisors to Healthcare’s Leaders
310 Fourth Avenue South, Suite 5010Minneapolis, Minnesota 55415877.776.3639
Kate Lovrien, [email protected]
Luke Peterson, [email protected]
THANK YOU!
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Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry
Can be helpful to view the plan from a POSITIONING and COMPETENCIES perspective then driving towards PLANS and ACTIONS
Helpful Structures
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Invest
IF YOU ARE NOT GROWING YOU ARE DYING The big are going to
get bigger as they understand the need for scale
THOSE THAT OWN THE INFORMATION AND TALENT CAN USE IT TO WIN Information
and an understanding of the consumer is becoming an increasingly important competitive advantage
THE CONSUMER WILL FIND A WAY TO HAVE WHAT THE CONSUMER WANTS Growing
information transparency is empowering consumers and making old models of care less relevant
NEW COMPETITORS WILL ELIMINATE THE LOW-VALUE DELIVERY MODELS Patients, payers,
and competitors are eliminating providers who are not building greater and greater effectiveness