Adaptability and navigating the unknown are two skills that are dominating healthcare right now. As the healthcare industry tries to find its new normal in the COVID world, many organizations are exploring new business models — and that includes developing new strategic partnerships with payers, hospitals and even provider groups. In this episode of Value-Based Care Insights, special guest Jim Yanci shares insights about how building successful strategic partnerships can maintain stability in hospitals.
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Episode Discussion Areas:
- What are the biggest impact drivers of strategic hospital partnerships?
- Consumer anxiety – postponing procedures plus the fear of going to hospitals equals lower revenues and margins.
- Maintaining a level of clinical focus will help attract specific populations back to the hospitals.
- New organizations are emerging and taking advantage of the disruption in healthcare that we’ve seen as a result of COVID.
- Where do you start? Who do you start engaging with to create that level of alignment?
- Starting strategic partnerships is not a linear process.
- Use cost accounting systems and review service lines.
- The business opportunity needs to be a win-win between two organizations seeking partnership.
- Ensure you increase the value and profitability of your franchise by implementing performance improvement changes; reducing as much cost as possible; and making yourself attractive to a potential partner, either from a whole facility perspective or within a particular service line.
- Who do you look at to create strategic partnerships?
- We’re seeing more public health partnerships and other organizations coming together in this response to COVID.
- You can have hospital partners that are many different types of outpatient facilities — including pain management, imaging and labs, and pharmacies.
- There are still many hospital-physician alignment strategies that can help enhance the service line — from co-management to hospital efficiency programs to clinical integration.
- What steps do you need to take in advance to create a successful strategic partnership?
- Discovery lets you take an internal look inside of your organization.
- You’ll also want to take an external look at the competition.
4 Key Takeaways: How to Leverage Strategic Hospital Partnerships to Maintain Stability
Strategic partnerships can benefit those who had been operating in a fee-for-service reimbursement environment.
- There are several impact drivers causing organizations to consider strategic alignment with partnerships.
With COVID and the reduction of elective procedures, we saw the limitations of the fee-for-service structure. Patients are postponing elective surgeries, and the elderly are reluctant to go to healthcare facilities. This is leading organizations to think about innovative strategies to counteract lower volume (which leads to lower revenues and lower operating margins).
- Consider at least these 6 factors when moving forward with partnership:
- Size of the partner
- Internal level of financial pressures
- How you’re performing in the markets
- Operating margins
- Physician recruitment is another large opportunity
- Range of services the partner offers
- These 6 steps will help healthcare leaders advance partnership development.
- Make a discovery into your organization and your market to identify your competitors.
- Ensure your senior leadership team is aligned.
- Do a gap analysis to help you identify a future partner.
- Once you find a potential partner, make sure you’re culturally aligned
- Develop a joint vision
- Decide how to move forward.
- The advice organizations should keep in mind as they think about their strategic partnerships.
First and foremost, you’ll want to create the value proposition and create the value to answer the “why.” But at the end, you just have to trust the partner. But if you know that your vision is aligned and it’s clear how governance is going to work, then you’re on the right track.
About The Show
From HealthcareNOW Radio, Value-Based Care Insights is a podcast that explores how to optimize the performance of programs to meet the demands of an increasing value-based care payment environment. Hosted by Dan Marino (@DjmarinoHD) and Shaillee Chopra (@SJChopra), the VBCI podcast highlights recognized experts in the field and within Lumina Health Partners (@LuminaHP). Join the conversation on Twitter at #VBCInsights. This article was originally published on the Lumina Health Partners blog and is republished here with permission.