Separating Fads from Facts
By Nathan S. Kaufman

As a strategic advisor to more than 60 health systems and several medical groups, I have been able to identify the common drivers of peak performance in these organizations. Unfortunately, I have found that much of the industry literature upon which many health care organizations rely to improve their performance focuses on fads, not facts.

High-performing health care organizations and their boards understand that good business outcomes result from analysis based on empirical evidence, not from following the latest fad. Boards that routinely request evidence to support the decisions they are being asked to make will be in a better position to separate these fads from fact. Following are some currently prevalent examples.

Fad: There is a one-size-fits-all set of simple strategies to position hospitals to succeed in the future.

Fact: Everyone is looking for answers.

The health care industry is in transition Hospitals and physicians have to learn new competencies in order to succeed in the new environment. These key competencies include employing large numbers of primary care physicians and specialists; demonstrating measurable quality; and managing service lines. The ability to develop key strategies successfully is specific to each organization’s market. Most key strategies require frequent corrections in midcourse.

Fad: Quality and patient safety will determine a hospital’s success over the next three to five years.

Fact: Effective contracting and a high-performing revenue cycle are today’s drivers of success.

Health systems that are achieving peak performance all have top-of-market payer contracts and exceptional revenue cycle results. High revenue per unit of service is driving the ability of health systems to work through and eventually address their critical issues. Achieving high payer revenue per unit:

• Fuels investment in quality infrastructure, physician employment and service line development.
• Funds physician recruitment.
• Funds the deficit created by most physician-hospital joint ventures.
• Compensates for losses from competing physician-owned ventures.
• Provides funds for ever-increasing physician demands for payment to take emergency department call and clinical department head positions.

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Power Hour - Mercy Hospital and Unity Hospital

Center member Allina Hospitals and Clinics affiliate hospitals Mercy & Unity and the Anoka-Hennepin School District were recently honored by The Minnesota Hospital Association (MHA) with the 2007 Large Hospital Community Partnerships Award for their combined healthy school initiative, Power Hour. The hospital-school partnership also received the Anoka County Public Health Recognition Award.

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The Center for Healthcare Governance developed Speakers Express to help make the high-caliber speakers and presenters found at its national symposia and regional workshops available to organizations throughout the country. Our speakers are proven professionals who are viewed as the "go-to" leaders in their respective fields of expertise, customizing their presentations to fit the unique needs of each organization.

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