Healthcare’s second curve is coming fast. Hospital and health system leaders know they won’t survive it without improving alignment, collaboration and trust with physicians.
The first curve was all about pay for volume. Physicians had to crank RVUs and hospitals needed heads in beds. For the most part, a hospital’s success on the first curve could be a byproduct of physician success, even if their incentives weren’t fully aligned.
The same won’t hold for the second curve. It will be about pay for performance, outcomes, population health management, the Triple Aim and other forms of pay for value. This means physicians and hospitals must work together to transform their business model from providing services to achieving health.
“Hospitals, physicians and healthcare systems are trying to figure out when to jump to the second curve. If they jump too soon, they leave money on the table. If they jump too late, someone else will be ahead of them on the learning curve,” says Rick Sheff, MD, principal and CMO of The Greeley Company, a healthcare consulting firm based in Danvers, Mass.
“The imperatives to succeed on the second curve are to improve quality and reduce costs at a pace and magnitude nobody knows how to do today. But somebody’s going to figure this out. And if that somebody isn’t you, they’ll be eating your lunch,” Dr. Sheff adds.
The above excerpt is from a recently published Becker’s Hospital Review Executive Briefing, 7 Steps to Achieve Physician-Hospital Alignment, Collaboration and Trust, for which Dr. Sheff was interviewed.