Eleven Insights on the Future of Care Management

1. Care management is the best way to reduce avoidable costs quickly.

Hospitals and health systems need to focus on reducing avoidable health care spending—not just because Americans are getting older and therefore sicker, less procedural, and less profitable when they’re in the hospital, but because providers can expect to assume financial risk for health care utilization eventually, if not imminently.

Health care institutions can reduce avoidable costs in a few different ways. They can deploy health plan management processes and incentives. They can collaborate with other providers on quality and cost initiatives. And, they can actively manage patients across multiple episodes and care settings.

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