Change is now in healthcare. Rising costs, technologies and regulations are disrupting the industry more than ever before. You feel the stress of change. Your quality of care is scrutinized.
You need stability—a consistent, effective plan to adapt to the change and make it work for you.
With the passage of the Affordable Care Act (ACA) healthcare in America has moved from fee for service to an outcome-based system. Both payers and providers face increasing pressure to reduce costs while improving outcomes for consumers. In addition to an increased government role, competitive intensity has picked up through consolidation in the market and new players in the industry. Consumers are also driving changes in the healthcare industry as their voice becomes louder and more central and healthcare moves from a B2B to B2C model.
How Do We Respond?
With novel ideas, new players, a new market place and a B2C model how can companies compete in a standardized market where costs are capped and reimbursement models are based on outcomes?
In the new market retention of existing customers and predicting member churn is key. In order to retain existing customers, business models must evolve to be consumer-centric. This can be achieved in a variety of ways including making healthcare on both the payer and provider ends easy to buy and navigate through improved digital engagement (digital health and population health initiatives), better content and enhanced user interface on websites. Additionally, providers and payers can utilize data analytics to reduce medial expenses and pass those savings on to consumers.
In order to grow existing business in a changing market companies must develop strategies to promote existing and expanded services using multiple outreach strategies and platforms including retail and community outreach. Providers and payers can also work together to share information and bundle innovative products and services increasing stickiness with consumers.
As part of a growth strategy in a new market diversification is a unique way for payers and providers to expand sources of revenue. This diversification could include working with new and expanding Medicare and Medicaid populations as membership of both continue to grow. Diversification could also include offering ancillary services and products around dental, vision, life and even pets. In the quest to expand another avenue to explore is partnerships with innovative companies in the market place – viewing them as an opportunity instead of a threat.
All of these changes can be overwhelming for you and your organization. In this time of change Amitech Solutions can be your trusted advisor, helping you navigate these changing waters.