Deloitte Center for Health Solutions – “A consumer-driven culture of health.”

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The Deloitte Center for Health Solutions’ “Center for the Edge” recently published an interesting article (attached) entitled “A consumer-driven culture of health: The path to sustainability and growth” which I found interesting. They write: “The dramatic transformation occurring in the US health care system is creating both significant challenges and opportunities for current industry participants and new entrants. Standing still in this environment is not an option.” Within the report, they discuss:

  • The “gilded cage”: For decades, the US health care system has operated under heavy regulation and the fee-for-service (FFS) payment model. While offering profitability, growth, and relatively low risk; it inhibited transparency, competition, and innovation.
  • A tipping point: The Affordable Care Act has brought the market to a tipping point, but not in the way many perceive. The financial pressure from funding its primary objective—coverage for the uninsured—has underminded the FFS margins driving health care providers toward value-based care and pulling the rest of the industry with it.
  • Initial response: Many industry players have focused on consolidation to both retain market power and create value through vertical integration and scale. Unfortunately, while this approach may be able to deliver more efficient and effective care in the near term, in the long-term may suffer from diminishing returns.
  • An alternative path to sustainability and growth: A consumer-driven market that responds to the increasing demand for healthy outcomes will require capabilities and roles that do not exist in the current market. Consumers will demand trusted platforms to access resources and deliver innovative and efficient solutions. Today’s industry players will need to take a hard look at the role they are best positioned to play and then craft a scaling edges program to help transform their existing business.

Again, the report is attached. As always, please feel free to contact us if you have any questions about your business model and positioning yourself for financial sustainability.

Read more here.

About Jeffrey Lynne

Jeffrey C. Lynne is a South Florida native, representing individuals and business entities relating to licensing, accreditation, regulatory compliance, business structure, marketing, real estate, zoning and litigation pertaining to substance abuse treatment facilities and sober living residences. Mr. Lynne has been recognized across the region as a leader in progressive public dialogue about the role that substance abuse treatment has within our communities and the fundamental need and right to provide safe and affordable housing for those who are both in treatment for addiction and alcoholism as well as those who are established in their recovery.

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