Five Vital Keys
This ER Hospital Plan has the essential Five Vital Keys to the success of a new venture (per Warren Buffett):
- Market Trends
- Unique product
Clearly the market trends are begging for such a product, demonstrated by regional healthcare providers reaching for additional market share, industry trends demanding lower cost facilities, reported news articles and market trends. All are evident of overcrowded and expensive emergency rooms with long wait times. This product is unique given the requirements for lower cost healthcare for future success. The future lies in the hands of the lower cost providers.
Our partnership philosophies with regional healthcare systems will add to the market strength of a regional healthcare provider thus strengthening our position in the market as well.
The new U.S. healthcare reform legislation includes many changes that will occur in stages over the next several years. This legislation is focused primarily on expanding access and reforming insurance accessibility. Equally important is the need to better manage healthcare costs.
Currently, the way healthcare is financed and delivered encourages escalation of healthcare costs. It is not a sustainable model. The new legislation provides a framework that can lead to the delivery of better care while helping control costs. A new (CMS) Center for Medicare and Medicaid Services Innovation is implementing several pilot projects nationwide that could free some providers from existing fee-for-service payment rules. This will focus on the quality of care not quantity. Providers will be encouraged and given incentives to develop new ways to deliver quality care more efficiently.
Some of the key concepts that will likely guide healthcare delivery in the future include:
- Paying for value. This means rewarding positive outcomes rather than paying just for the amount of care provided.
- Focusing more on prevention, education and managing chronic diseases such as diabetes and heart disease.
- Emphasizing ‘care coordination’ – providing the right level of care at the right time.
- Insisting on transparency in medicine – sharing data so everyone can make wise choices.
- A focus on evidence based care – using proven methods that eliminate wasteful, duplicative care.
Restructuring government payment policies will change the way healthcare is delivered and will help control costs. Effective healthcare reform must reward value, which will lead to higher quality and more efficient healthcare.