Smaller Hospitals and Health Systems ‘Struggle’ to Deliver Value-Driven Care

A new EY survey of U.S. health care providers reveals top priorities and challenges for 2017.

According to a provided report summary, competing priorities and regulatory uncertainty are making it difficult for health care organizations to transition from fee-for-service to fee-for-value.

The Ernst & Young LLP Advisory Health practice report details insights from a national survey EY conducted with 700 qualified health care professionals.

“It presents prominent factors that are challenging health organizations’ performance and growth and notes that organizations can address these obstacles through a transformation that can lead to a competitive advantage and better health outcomes for patients,” a media release explains.

The report points to four key factors that are challenging the value-driven transformation that is essential to the U.S. health care industry’s future sustainability:

  • The escalating cost of care delivery, driven by system inefficiencies
  • Clinical workforce challenges that increase the potential exposure of patients to medical errors
  • A lack of standardization in how quality is defined and measured
  • Lack of trust between providers, payers and regulators

“It is insightful that among hospitals and health systems with revenues of less than $1 billion, few have embraced strategies or made progress toward value-driven care,” said Yele Aluko, MD, an executive director in the Advisory Health practice at EY, a former hospital system physician-executive and a co-author of the report.  “This creates a competitive disadvantage for smaller hospitals, and quite frankly, puts their financial futures, sustainability and corporate existence in jeopardy. The new world order in healthcare will require clinical, administrative and financial innovation to meet the needs of consumerism and industry demands for value transparency.  Many smaller hospitals and health systems lack the strategic management processes, corporate resources and capabilities to remain competitive in the short term or relevant in the long term.”

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