Moderator: Lisa Ponssa, Executive Vice President, Healthcare Business Media
Speakers: Kelly Nelson, System Director, Business Development and Projects, Fairview Health Services and Gregory Shufelt, ASA, Managing Director, Prism Healthcare Partners LTD
Whether it is in collaboration or consolidation, the healthcare market is abound with disruptions as IDNs adapt to the changing healthcare landscape.
With changing reimbursements and steeper cuts to operating margins, health systems are looking for every possible avenue to cut costs across all areas of the system. This shift in the healthcare industry has led many IDNs to develop creative contracting strategies where risk is being shared by multiple parties. In a risk-sharing, performance-based contract, suppliers assume risk if goals are not met but could participate in an upside if various performance standards are met.
According to Dealogic stats, $163B worth of healthcare mergers and acquisitions were proposed for 2014, an increase of 50% from 2013 and 211% in 2012. The increase contributed to IDNs dealing with consolidation pressures due in part to the Affordable Care Act, changing reimbursement models, and financial problems, among other factors. Through these collaborations, IDNs aim to increase efficiency and productivity, while at the same time improving patient care. The end goals of a merger or acquisition are not always easily achieved, as the sudden change can be both large and disruptive. This session will discuss the shift to risk-sharing contracts and how the supplier / IDN contracting relationship is evolving. We’ll also analyze how mergers and acquisitions are providing both small and large scale disruptions, discuss tips and strategies for navigating these disruptions, and what mergers and acquisitions hold for the future of healthcare.
1. Identify the implications that risk-contracts will have on the supplier/provider relationship.
2. Evaluate the disruptions caused by mergers and acquisitions including how to manage them.
3. Analyze the pros and cons to disruptions like risk-contracts and mergers and acquisitions.