ERDMAN E-News – Differentiated Healthcare Market Strategies



Medicare Records Show Growth in Care Roles of Non-Physicians
Healthcare Dive, July 30, 2015


Medicare data has shown significant growth in payments for services provided in recent years, a trend running concurrent with fast growth in the number of nurse practitioners and physician assistants in practice. This trend reflects an attempt to stave off a shortage of physicians, particularly in primary care and behavioral health, in addition to efforts to bend the unsustainable cost curve in healthcare. These advanced practitioners are administering more advanced levels of care, with one cited example being the amount of psychotherapy services being provided by nurse practitioners.

Recruiting NPs and PAs to work at the “top of their license” as part of complete care teams is a strategy that is being increasingly employed by health systems to improve both the cost and quality of care. When physicians are utilized only when the most advanced care is needed, care becomes much more efficient.

Staying Relevant:Tougher Than it Sounds for Large Health Systems & AMCs
Becker’s Hospital Review, December 10, 2015


Competition and consumerism are creating an imminent need for health systems to create and execute effective multifaceted market strategies. A recent Becker’s Hospital Review CFO panel discussion provided insights on how both large systems and individual hospitals can work to remain relevant in an evolving landscape.

It was noted that large health systems must not try to apply system-wide strategies to individual markets, but instead take each market’s individual reimbursement rates that may vary to payor mix, as well as considering their numbers of employed physicians or affiliated physicians with whom they must coordinate. At a system-wide level, many best practices can be developed for each service line.

Panelists discussed the considerations of the academic medical centers, which may also apply to individual hospitals with challenging payor mixes. It was suggested that these hospitals work to control the costs that come with complex patients by seeking multiple types of partnerships with other community hospitals and building their network of medical homes and other varieties of low-acuity outpatient practices. Patients can then be routed to these locations while their hospital can provide higher-acuity specialized services.


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