The Leader’s Board - Health System Advisorshealthsystemadvisors.com/wp-content/uploads/2016/05/Leaders-Board... · instead address the trends and implications we see changing health

The Leader’s Board

Transforming Your Health System: Incorporating Latest Trends and Implications into Your Plan

April 21, 2016

Advising Leaders, Advancing Organizations, Transforming the Healthcare Delivery Industry

Our teams at Health System Advisors facilitate new thinking as health systems navigate the future

● Competitive positioning

● Mergers, acquisition, and partnerships

● Service lines

● Physician plans

● Contract Urgent Care strategy, development and operations with our subsidiary Urgent Care Partners

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TRANSFORMING Your HEALTH SYSTEM: Incorporating Latest TRENDS and IMPLICATIONS into Your PLANNING

Our goal is not to describe every strategic planning model in place today, but instead address the trends and implications we see changing health system planning over the next several years

Our Topic… Advances in Transformative Strategic Planning

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What do Strategic Plans Look Like?


What are today’s Strategic Plans Incorporating?

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The major trends fall into two categories:

1. Changes to the PROCESS by which strategic plans are being developed

2. Changes of the things on which the strategic plans FOCUS

How Can We Keep Track of the Changes?

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Strategic Planning

Technical

Outside-In

On-Line Data Gathering

CharacteristicSegmentation

CrowdsourcingInput

Big Data

Classic vs. Adaptive

Top-down vs. Bottom-up

DifferentialOutlook Horizons

Data Visualization

2. New Planning Processes

1. New Areas of Focus

StrategicDissonance

Themes

Market Relevance

Capabilities

CustomerRedefinition

Industry Positioning

Market Positioning

ApproachTrends

DriversTech-enabled

care

FinancingSystems

Non-TraditionalCompetitors

Population Expectations

Demographics

InformationAvailability


New drivers are changing how health systems must POSITION and ADAPTtheir strategy

> Generally expectations for SERVICE and CONVENIENCE are rising

> TRUST in traditional health systems is declining

> VENTURE CAPITAL and ENTREPRENEURS are entering the provider industry segment and changing the face of competition

> Increased consumer PRICE SENSITIVITY and thus pricing pressure

> Continued shift towards LONGITUDINAL PAYMENT models

New and Emerging Drivers

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Demographics

1. Aging

2. Ethnicity

3. Migration


1. Consumerism

2. Mobile access

3. Immediacy

4. Customization

Drivers


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Non-Traditional Competitors

1. Entrepreneurs

2. Fortune 500

3. Payer-Provider

Drivers


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Information Availability

1. User ratings and reviews

2. Wait times / availability

3. Treatment options

4. Price and Quality Transparency

Drivers


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Tech-Enabled Care

1. Virtual care and telemedicine

2. Personalized medicine

3. Advanced diagnostics

Drivers


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Demographics

1. Aging

2. Ethnicity

3. Migration

Drivers

11.7xAverage number of movesin a lifetime in 2007


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Financing Systems

1. Risk and shared savings contracts

2. High deductible plans

3. Concierge / membership models

Drivers


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Information Availability

1. User ratings and reviews

2. Wait times / availability

3. Treatment options

4. Price and Quality Transparency

Financing Systems

1. Risk and shared savings contracts

2. High deductible plans

3. Concierge / membership models

Tech-Enabled Care

1. Virtual care and telemedicine

2. Personalized medicine

3. Advanced diagnostics

Non-Traditional Competitors

1. Entrepreneurs

2. Fortune 500

3. Payer-Provider

Demographics

1. Aging

2. Ethnicity

3. Migration


1. Consumerism

2. Mobile access

3. Immediacy

4. Customization

Drivers


Emerging themes emphasize the health systems’ INDUSTRY ROLE

> The definitive lines between traditional roles is BLURRING

> Definition of the CUSTOMER is changing

> The REQUIREMENTS and EXPECTATIONS of the healthcare product is changing

> Sources of revenue are shifting to LONGITUDINAL models

> CAPABILITIES are moving from growth to include effectiveness and adaptation of new models

As a result, emerging strategic themes attempt to address the redefined customer, redefined position, and redefined requirements for success

New and Emerging Themes

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Redefined Customer

1. Patient vs. consumer

2. Population vs. individual

3. Episodic vs. continuous

ThemesWho is the customer?


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Themes

Market Relevance

1. Access

2. Convenience

3. Pricing


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ThemesCapabilities

1. Consumer health management

2. Ambulatory / Retail

3. Longitudinal quality

4. Analytics and care management

Centura Health Neighborhood Health Center


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Themes


1. Industry share

2. Vertical integration

3. Alternative partnership models

Aurora Health and Anthem

form new Insurance Company

Centura Health and DaVita HCP

form FullWell


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ThemesMarket Positioning

1. Market share

2. Geographic footprint

3. Scale economies

Aggregate

Assimilate

Integrate


Capabilities

1. Consumer health management

2. Ambulatory / Retail

3. Longitudinal quality

4. Analytics and care management

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Market Relevance

1. Access

2. Convenience

3. Pricing

Redefined Customer

1. Patient vs. consumer

2. Population vs. individual

3. Episodic vs. continuous

Market Positioning

1. Market share

2. Geographic footprint

3. Scale economies


1. Industry share

2. Vertical integration

3. Alternative partnership models

Themes


Emerging approaches to planning emphasize the RAPIDLY CHANGINGindustry dynamics

> Define how the health system is VIEWED in the current and future environment is a clear focus of new approaches

> Working towards a PURPOSE rather than a direction towards capabilities rather than detailed roadmaps

> Incorporating PARTNERS and relationships with other organizations to achieve the organization’s vision

New and Emerging Approaches

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Approach


1. Direction vs. purpose

2. Predictions vs. pilots/experiments

3. Data collection vs. pattern recognition

4. Roadmap vs. capabilities


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Approach

Top-Down vs. Bottom-Up

1. Crowdsourcing

2. Leadership bounded direction

3. Strategy and Integration


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ApproachOutside-In

1. Market’s view of the health system

2. Industry’s view of the health system

3. Patient, consumer, purchaser perspectives

Your View of You

Their View of You


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Approach

Differential Outlook Horizons

1. Short-term actions

2. Long-term purpose

3. Differential horizons with partners


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Strategic Dissonance

1. Active white space identification

2. Timing

3. Willingness to live in uncertainty

Approach


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Top-Down vs. Bottom-Up

1. Crowdsourcing

2. Leadership bounded direction

3. Strategy and Integration


1. Direction vs. purpose

2. Predictions vs. pilots/experiments

3. Data collection vs. pattern recognition

4. Roadmap vs. capabilities

Outside-In

1. Market’s view of the health system

2. Industry’s view of the health system Strategic Dissonance

1. Active white space identification

2. Timing

3. Willingness to live in uncertainty

Differential Outlook Horizons

1. Short-term actions

2. Long-term purpose

3. Differential horizons with partners

Approach


New tools are creating a host of ways to collect and view BIG DATA and changing how we view the market and test future predictions

> Mapping and GRAPHIC TOOLS are shifting how data is synthesized and viewed

> People are becoming used to having a CUSTOMIZED EXPERIENCE based on their unique needs resulting in the need to more fully understand non-clinical elements of the patients

> Internet and social media tools creating new ways to REACH and UNDERSTAND unique population segments

New and Emerging Technical Tools

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Technical

Big Data

1. Clinical and economic

2. Demographic and usage patterns

3. Predictive pattern analytics


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Technical

Crowdsourcing Input

1. Internal

2. External

3. Implementation


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Technical


1. Amazon’s M-Turk

2. Use of social media to target data from distinct populations


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Technical

Characteristic Segmentation

1. Demographic

2. Payer

3. Disease

4. Access and delivery platform

Primary Care Patterns 2015

Preferred Delivery Model

Primary Payer

Patient Age

Total Disease Load


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Technical

Data Visualization

1. Graphics display

2. Mapping and geocoding

Likelihood of Private Payer


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1. Amazon’s M-Turk

2. Use of social media to target data from distinct populations

Characteristic Segmentation

1. Demographic

2. Payer

3. Disease

4. Access and delivery platformData Visualization

1. Graphics display

2. Mapping and geocoding

Crowdsourcing Input

1. Internal

2. External

3. Implementation

Big Data

1. Clinical and economic

2. Demographic and usage patterns

3. Predictive pattern analytics

Technical


How has your FOCUS and PROCESS changed in the last several years?

What THEMES are emerging in your plans?

How are you incorporating the BIG DATA and ANALYSIS?

How are you seeking to evaluate your MARKET AND INDUSTRY POSITION?

Who are your most important CUSTOMERS and COMPETITORS and how are your SEGMENTING them?

Discussion and Questions

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1. The healthcare industry is under tremendous pressure, mostly from the OUTSIDE

● It is easy to miss the emerging trends because they often come from outside the industry where we are typically less familiar

2. Health systems must take into account new DRIVERS to adapt the FOCUS or risk being outmaneuvered by competitors you never expected

● It’s not usually the devil you know that gets you…..

3. INNOVATIVE approaches and tools are helping organizations create more effective planning processes

● The tools are moving as fast as the changes to the process allowing the “5-year plan” to become a continuous process towards a long-range purpose/goal.

Lessons Learned

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The static 5-year planning process is DEAD

> The market is moving too fast

> Competitors are not only unpredictable, but also undetected until they are in your face

The data available is OVERWHELMING

> Data will not decide purpose. Leadership must lead

> Predictive data is helping provide visibility to the future, though only in some areas

The role of the strategic planner is shifting from prognosticator to FACILITATOR, PATTERN RECOGNIZER, and TRANSLATOR

Bringing All it Together

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Strategic Advisors to Healthcare’s Leaders

310 Fourth Avenue South, Suite 5010Minneapolis, Minnesota 55415877.776.3639

Kate Lovrien, [email protected]

Luke Peterson, [email protected]

THANK YOU!

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Can be helpful to view the plan from a POSITIONING and COMPETENCIES perspective then driving towards PLANS and ACTIONS

Helpful Structures

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Invest

IF YOU ARE NOT GROWING YOU ARE DYING The big are going to

get bigger as they understand the need for scale

THOSE THAT OWN THE INFORMATION AND TALENT CAN USE IT TO WIN Information

and an understanding of the consumer is becoming an increasingly important competitive advantage

THE CONSUMER WILL FIND A WAY TO HAVE WHAT THE CONSUMER WANTS Growing

information transparency is empowering consumers and making old models of care less relevant

NEW COMPETITORS WILL ELIMINATE THE LOW-VALUE DELIVERY MODELS Patients, payers,

and competitors are eliminating providers who are not building greater and greater effectiveness

Documents

The Leader’s Board - Health System Advisorshealthsystemadvisors.com/wp-content/uploads/2016/05/Leaders-Board... · instead address the trends and implications we see changing health