TRENDS
BY PETE MERCER
Restructuring hospital operations and protocols Because of these shifts in the healthcare industry, hospitals are looking for ways to restructure their operations and investment resources to stay above water in a challenging market. Tori Richie, Consulting Director, Intelligence at Sg2, said, “We have seen an increased focus on the diversification of a systems portfolio. For example, we’re looking at product differentiation. How do systems
Impact of Change The future of hospitalizations.
offer different types of services than they have in the past?” Richie went further, saying, “There’s been increased emphasis in systems operating at the top of their license. That’s a conversation we often hear directed towards providers. We want to make
The effects of the COVID-19 pandemic will be felt in the healthcare industry
sure providers are working at the top of
for years to come. With hospital resources still strained and healthcare workers still
their license. But now it’s taking a more
stretched too thin, the industry has been reshaped by the greater ramifications of the
system-level approach to really ensure
coronavirus, specifically in terms of long COVID and chronic conditions.
that complex patients are staying put and we are disincentivizing them from seeking care elsewhere.”
According to the annual Impact of
at-home initiatives,” Maddie McDowell,
Another reason hospitals are look-
Change Forecast from Vizient subsidiary
MD, FAAP, senior principal and medical
ing to restructure is the new consumer
Sg2, hospital resources will face an even
director of quality and strategy for Sg2,
dynamics. Richie says that not only have
greater strain as the volume of patient
said in a media release.
consumers gotten smarter about how
acuity rises in the next 10 years. The re-
they are accessing care, but they are no
port says that while inpatient hospital ad-
longer loyal to a single healthcare system
missions may slow down, there will be an
like before. This creates new hurdles for
increase in the length of adult inpatient
systems where they can no longer rely
stays by 8% over the next decade. This is
on their traditional revenue streams and
in part because of the ongoing symptoms
historical customer base.
experienced by those with long COVID,
Some ways that health systems are
as well as a rise in chronic conditions in
looking to navigate these challenges are
the last couple of years.
the commercialization of clinical assets,
“While case mix varies by hospital, it is
creating healthcare incubators, leverag-
likely this combination of increased inpa-
ing partnerships, and investing in their
tient volume, patient complexity and length
communities. Like with anything, when
of stay may require healthcare organiza-
the customers start to make different
tions to rethink service line prioritization, service distribution and investment in care
42
purchasing decisions, the providers will Tori Richie
have to adapt to keep up.
August 2022 | The Journal of Healthcare Contracting
