With so many of our supplier and service provider members in the midst of strategic planning for 2019, we've received a number of questions about the top priorities for health systems moving into next year. Earlier this year our colleagues at the Health Care Advisory Board surveyed nearly 150 C-Suite executives about their top concerns and strategic priorities. The top five areas of concern shared by survey respondents were:
Dec. 12 webconference: Learn the key challenges facing the health system C-suite in 2019
- Preparing the enterprise for sustainable cost control (61.6%);
- Innovative approaches to expense reduction (56.3%);
- Exploring diversified, innovative revenue streams (55.9%);
- Boosting outpatient procedural market share (50.3%); and
- Meeting rising consumer demands for service (50.0%).
These results clearly show that health system leaders remain focused on margin management. This is perhaps not a huge surprise. But what these numbers don't show is how providers are going to address these concerns, and how their actions will change the way they work with their supplier and service provider partners.
Looking to defend both sides of the margin equation
The way we see it, health system margin management needs to involve a closer look at both sides of the margin equation. Certainly integrated delivery network (IDN) leaders remain focused on defense—cost control. However, they are also focusing more and more on offense—revenue opportunities. And there are many opportunities for health systems, whether it's looking to the procedural business or thinking about innovative venture investments.
What does this mean for suppliers and service providers?
As health system and IDN leaders look to take advantage of revenue opportunities, they may expand their care delivery sites. In this new model, your products and services will be used at more care sites. This means you may also see a corresponding increase in the number and variety of stakeholders poised to influence decisions about product selection, care sites, and appropriate use.
This change will have two major impacts. First, you'll need to broaden your customer insight to be sure you can speak to these new stakeholders and their needs. Second, remember that more influencers doesn't mean more decision-makers. We expect IDNs to continue their move to centralized purchasing.
We'll discuss this change, and more, in our annual end-of-year C-Suite Agenda webconference on Wednesday, December 12, at 3:00 PM ET. Join us to go inside the mind of health system C-suite executives to see what they're concerned about in the year ahead and how your selling environment will change.
Bend the health care cost curve by reducing care variation
While reducing unwarranted care variation has long been a means for improving care quality, health system executives are now counting on this strategy to help bend the health care cost curve.
Use this infographic to help inform your health system's next care variation reduction savings opportunity, while maximizing their return.