Flipping the switch to value-based healthcare

by Kenneth H. Cohn "We face a serious dilemma," recounted a community hospital CEO who participated in my seminar, Practical Strategies for Engaging Physicians. "If we stop doing fee for service now, it will cost us millions of dollars. On the other hand, if we wait, the trap door may close behind us. We need to be ready to flip the switch." All the other CEOs in the room nodded their heads. The fundamental challenge in the transformation of U.S. healthcare from volume to more value-based metrics is readiness in an uncertain environment. As I've noted, "complex adaptive systems involve a collection of people acting interdependently, such that one group's response changes the context for everyone else."1 Phil Newbold, CEO at Memorial Hospital in South Bend, Ind., tithes 1 percent of annual revenues to support new processes and technologies because he believes innovation is an important core competency. He provides innovation training to all employees and has built a culture of innovation through rapid prototyping and creating what he calls a cadence of accountability--"knowing that others are counting on you raises your commitment." Rewarding learning rather than punishing failure empowers people to embrace innovation and creates a safe environment for reflection and dialogue.2 During the seminar, we agreed authentic physician engagement is an essential component of healthcare innovation. As a physician from upstate New York quipped, "When we don't have a seat at th...
Source: hospital impact - Category: Health Managers Authors: Source Type: blogs