Learn more about the models that can align the strategic and financial interests of an adult-focused health system with those of freestanding children’s hospitals.
With the shift in health care from fee-for-service to value-based care, the evolution of care models is placing greater pressure on all health care providers, including children’s hospitals, to focus on the Triple Aim—providing greater value at a lower cost. This has furthered the case not only for market consolidation and regionalization of health systems but for the formation of integrated delivery networks (IDNs), as well.
While IDNs have been around for decades, the case for a consolidated network has only become stronger in an environment where tighter alignment and coordination of various care components contribute to the delivery of higher-value health care. In this increasingly aligned market, independent children’s hospitals have come under greater pressure to define their roles in providing high-value pediatric care.
To generate greater value, children’s hospitals must begin forming partnerships with other health care entities in their regions—selecting partners, for the first time in some cases, some of whom could be their direct competitors today.
This approach, “co-opetition,” is a formal collaboration between otherwise competing organizations to maximize the collective value in the marketplace of a good or service that is of mutual interest to both parties—in this case, enhancing the value of pediatric health care delivery in the given market.
Many health systems are seeking partnerships that are more meaningful than a transactional relationship that is defined by a series of purchased service agreements but stops short of “outsourcing” and yielding full control to the children’s hospital. At the same time, children’s hospitals are increasingly looking to expand their regional footprint to improve access to care, promote their brand.
While the concept of co-opetition is straightforward, its application can vary from one market to another. Depending on the degree of competition and the shift of each market to value-based care, these models should be applied will likely differ. There is no one-size-fits-all approach for children’s providers.
To learn more about a range of models that can align the strategic and financial interests of an adult-focused health system with those of freestanding children’s hospitals, register for the Nov. 12 webinar, “Don’t Grow it Alone: Expand your Health System’s Regional Footprint.” The webinar will cover models that address components such as governance and oversight, physician alignment, financial structure and payer-related strategies.
This content was sponsored by ECG Management Consultants. Send questions or comments.