I was just talking to a colleague about the recent public furor about hospital pricing, and he told me a great out-of-industry story, one from earlier in his career, that I thought was worth sharing more broadly because it casts the pricing issue in a new—and in some ways even more threatening—light.
What the telecom wars can teach us about hospital pricing strategy
In their efforts to bend the cost growth curve, we've seen many of our members launch standardization initiatives, hoping to operate more efficiently and with fewer cases of unwanted variation.
These individual initiatives can potentially address multiple sides of the organization, from clinical processes to administrative protocols, but the work of scaling them across the entire organization often requires an additional layer of accountability—if not a different in kind approach to management—to achieve meaningful results.
At Scripps Health, senior leaders were able to translate one of these approaches, termed "matrixed accountability," into a self-sustaining mechanism that drove cost savings of close to $50 million in just one year.
How Scripps rooted out $50M in unwanted variation through 'matrixed' management
As more patients enroll in high-deductible insurance plans, hospitals are looking for new ways to improve upfront collections—including partnering directly with financial institutions to offer financing options.
How to make affordable financing a win-win for patients and hospitals