- New York: SBH Health System, which is based in New York City's Bronx borough, plans to build 314 units of housing for low-income patients. SBH purchased nearly a city block of property over several years to provide space for the housing, which is being built in partnership with a local developer. Nearly 80 percent of SBH's patient population is either on Medicaid or uninsured, and the system hopes that investing in low-income housing will improve some patients' health and its bottom line—by, for instance, reducing utilization of the ED by patients experiencing homelessness. CEO David Perlstein, said, "Whatever has been done in the past has not been working, and we really have to think very differently" (Minemyer, FierceHealthcare, 12/5; Butcher, Hospitals & Health Networks, 1/5).
- Ohio: The Ohio Hospital Association and several other Ohio-based industry groups filed a lawsuit against the state of Ohio challenging the state's price transparency law. The law requires health care providers to give patients out-of-pocket cost estimates before providing any non-emergency services. The lawsuit argues that the measure has been implemented in an unconstitutional way and that lawmakers failed to hold necessary public readings of the law before it was adopted. The complaint also says the law could create harmful situations for patients and providers, such as in cases when insurers take too long to provide coverage information and a doctor must choose between providing timely care or violating the law. The law was scheduled to go into effect on Jan. 1, but a judge has blocked it pending a hearing on Jan. 20 (Bischoff, Dayton Daily News, 12/27/16).
- Pennsylvania: Highmark is launching a new voluntary incentive payment program for primary care physicians that will consolidate the insurer's seven incentive payment plans into one. Highmark hopes the "True Performance" program will make it easier to compare doctors on cost and quality. True Performance will give doctors bonuses for meeting cost and quality goals as well as providing them with a monthly per-patient care-coordination payment. Highmark anticipates that eligible physicians care for about 75 percent of its members (Twedt, Pittsburgh Post-Gazette, 1/6).
12 things CEOs need to know in 2017
The continued growth of the consumer-driven health care market threatens the durability of patient-provider relationships—and, at the same time, the push toward population health management and risk-based payment is greater than ever.
Hospitals and health systems must adopt a two-pronged strategy to respond to these pressures and serve both public payers and the private sector.
At the core of that strategy? A formula of accessible, reliable, and affordable care that wins consumer preferences and drives loyalty over time. Below, we share 12 key insights for senior executives working to create a consumer-focused health system.