Leading the Journey: Cultivating Success in Healthcare

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Leading the Journey:

Cultivating Success in HealthcareInsights from Leading Healthcare Executives

Hosted by Modern Healthcare Custom Media

March 11, 2015



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Today’s Presenters

Reynold Jennings

CEO

WellStar Health System

Gordon Mountford

Executive Vice President

Huron Healthcare


TRANSFORMATIVE CHANGEGordon Mountford, Executive Vice President, Huron Healthcare


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Fifth Annual CEO Forum

HealthcareCEOForum.com


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The Traditional Business Model is Changing

Commercial insurance is declining.

Government subsidized and self-pay segments are growing.


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Market Demands 20% to 40% Performance

Improvement


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Audience Question: Transformational Change

Which of these five areas do you believe holds the largest

performance improvement opportunity for your organization?

Revenue transition

Scale and integration

Operational excellence

Clinical transformation

Human capital


RISK AND REWARD / MARKET INTEGRATIONReynold Jennings, CEO, WellStar Health System


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Risk and Reward / Market Integration

Tectonic Shifts

Mega Trends

Healthcare is Local

Population Impact

Risk Continuum


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Tectonic Shifts

Baby Boomer

Total Cost Growth

Medicaid Expansion

Total Cost Growth

US Debt

Interest Burden


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Federal Spending and Revenues (Percent of GDP)


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ACA Revenue ReductionsEstimated Changes to Medicare Fee-for-Service Payments, 2013-2022

Reductions in

Annual Updates

to FFS

Payment Rates:

$415 Billion

over Ten Years

Source: Letter from the Congressional Budget Office to the Honorable John Boehner, Page 5,

Table 2, July 24, 2012 .


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Mega Trends

Financial Payments FFS to Value Consumerism

Aging of America Physician Shortage/Distribution


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Healthcare is Local

50% Population

in Top 25 MSAs

#53 MSA: Population

less than 1.0 mm

#105 MSA:

Less than 500,000

#185 MSA:

Less than 250,000Top 25 MSA’s


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Population Impact

24 of 25

Top MSAs

Already

Consolidated

Other 415

MSAs Will

Use Other

4 Models


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Risk Continuum

Clinical Affiliation

Regional Collaboration

Clinically Integrated

Hospital Network

Accountable Care

Organization

Merger or Acquisition


POPULATION HEALTHReynold Jennings, CEO, WellStar Health System


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Population Health

ACOs

– Pioneer

– MSSP

CIOs

– Commercial

– Triple Aim

– Total Physician Alignment


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CEO Forum Insights

Take Reasonable Risk

Data Parity Has Long Way To Go

Physician Engagement

Communication

Focus Efforts Based On Community Resources


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Audience Question: Population Health

What do you see as the biggest challenge in the shift to a

population health management approach?

Managing across the full continuum of care

Developing data analytics capabilities

Achieving appropriate scale

Aligning physicians/providers

Developing organizational leadership


LEADERSHIP IMPERATIVESGordon Mountford, Executive Vice President, Huron Healthcare


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New Models of Leadership


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Taking Reasonable Risk


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Need for Urgency


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Leading the Transformation Journey

Requires critical investments in technology, operational

performance, organizational culture, etc.

All depend on human capital to succeed.

Three essential elements:

– Operational excellence

– A strategy for transformational change

– The ability to optimize human potential and leadership

Organizations that combine all three will be in the best position

to succeed.


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Ten Questions for Leaders

How are costs aligned with revenue trajectory?

What changes in patient care revenue streams are forecast?

What increases, decreases, or shifts in utilization are

occurring?

What partnerships or alliances are shaping the market?

Where are the greatest opportunities to drive more value in

care delivery – improving outcomes, experiences, or efficiency?


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Ten Questions for Leaders (continued)

Is there active engagement with physicians and patients?

Do current hard and soft assets align with the strategy,

revenues, and delivery model, and will they scale effectively?

What changes in organization structure and incentives are

needed?

What are the greatest opportunities today to strengthen the

business, optimize revenues, and align costs?

Are there clear, prioritized goals and the leadership to achieve

them?


Questions

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Title and Date