4 Reasons Why Agility Is Essential
The rapid changes in the healthcare marketplace will likely continue for many years based on our recent experience. This disruption is dynamic and will leave no stone unturned.
Because of this churning, the successful healthcare business owner must be agile and able to shift course to be responsive to change for the following reasons:
- The very definition of what constitutes healthcare is being reconsidered by public and private payers. If there is not a clear healthcare-related benefit, a service or product that is paid for today may not be reimbursed tomorrow.
- Payer sources are shifting, with more and more service reimbursed at the private, including cash level. Prescient providers of durable medical equipment (DME) shifted to third-party and private sales in the past few years in anticipation of the recent Medicare competitive bidding. Today, many that didn’t are in a devalued position.
- Rapid improvements have changed the products and services we currently deliver, including slimmer margins in many areas. This has fueled consolidation and strategic partnership-building activity across the national healthcare spectrum.
- Managed care is an increasing phenomenon and related practices, including notices of change in reimbursement and service authorization, are being undertaken in a very time-efficient manner. Just a few years ago, a notice of change by a public funding entity might take a considerable period of time with a significant opportunity for input prior to implementation. Today it is common for a managed care entity to say “this is the way it will be” and the time period to be responsive is relatively short.
The above requires that a successful healthcare leader be able to shift resources, including management talent and financial assets, very quickly. Your values and ultimate goals need not change, but the deployment of resources must if you want to achieve your business dream.