Mr. Edmondson began the presentation by noting what hospitals need to focus on as their shift their strategy to population health. He said providers should focus on mastering their competencies and building infrastructure in these three areas: health information technology, patient-centered medical homes, and chronic disease management.
"The epic fail — this is what we're trying to avoid — [is] if patients get readmitted, there will be more and more penalties [for hospitals]. The idea is to make sure you're intervening with patients after discharge to make sure they don't get readmitted," said Mr. Edmondson.
He also said improved access to care is a huge component of this. Resources like 24-hour call centers allow patients to call a professional to determine whether they should visit the ED, an urgent care center, their primary care physician or another care setting for a specific health concern.
Mr. Edmondson also discussed the repercussions of ACOs down the line, and how they will likely demand change to hospitals' strategic thinking. "What you're seeing now is payors encouraging primary care physicians and ACOs to manage utilization. We talk a lot about primary care, and in a way, you want primary care to provide access because that is the least-expensive care. So where are [hospitals] going?"
Mr. Edmondson forecasted continued consolidation among healthcare providers with a more pointed focus on collaboration and coordination between care settings. He's also observed a more visible and prominent role for physicians. "What we're really seeing is very successful, large physician-driven models taking the lead. If physicians can organize themselves, this is a big threat to the hospital."
Dr. Bithony continued the presentation by discussing his experience with an ACO when he served as CMO, COO and CEO of a hospital in Springfield, Mass. When he began working at the hospital in 2007, it had a Medicare Advantage program that was full-risk and full-capitation. "That program was one of 10 in western Massachusetts," he said. "Nine went bankrupt. This system was