Navigating Through Crises Is What We Do

The measure of your organizational intelligence lies not in the ability to acquire knowledge but in how you manage and navigate through uncertainty. Hospitals and physicians are currently facing several challenges, including underfunded government payments; delays, denials and down coding by commercial insurers and Medicare Advantage plans; the shift of inpatient procedures to outpatient settings; shortages and hyperinflation in critical clinical personnel and supplies; and exceptionally high demand for emergency department care and inpatient beds. Neither employers nor state or federal governments can sustain the current rate of healthcare cost inflation.

Consequently, the likelihood is high for government and commercial rate caps as well as the uninsured population increasing. There are no straightforward solutions, only trade-offs. Health systems must aggressively pursue fair reimbursement while significantly reducing nonclinical costs and streamlining their organizations. While artificial intelligence holds promise, many solutions remain stuck in the approval process. The anticipated improvements in cost and quality during the two-decade journey toward value-based care and other healthcare reform innovations have not yet materialized and may never do so. It is time for our industry to face reality, not as it was or how we wish it were. This reality requires successfully navigating the complex journey to healthcare’s future.