Reconfiguring cost structure is a critical element in the journey from volume to value. Faced with pressures on both commercial and governmental reimbursement, most health systems are moving aggressively to lower costs for their existing services. But to successfully transition to value, health systems will also have to invest in new technologies and capabilities that enable them to take on risk and manage the health of populations. They will also have to adapt to changes in the competitive landscape, including new entrants and new innovations in healthcare delivery.

A wide range of approaches are being developed and tested to reconfigure the costs of care delivery. This toolkit, which accompanies HFMA’s Value Project report on Strategies for Reconfiguring Cost Structure, discusses and provides examples of how costs are being reconfigured, lessons learned by organizations that have already engaged in significant cost reconfiguration activities, and additional resources to help other organizations that follow on this same journey

Toolkit Directory

First-time users of this toolkit may find it helpful to work through the contents in order.

The links in this directory will take you directly to different sections of the toolkit.
Assessing the Situation: Identifying and Prioritizing Opportunities for Cost Reduction

Determining the Process: Who Should Be Involved?

Moving Forward: Case Studies
White Health: A Small System Emphasizes Cost Reduction
Red and Blue Health Alliance: Multiple Health Systems Work Together on Costs and Population Health
Green Health System: A Multi-state System Acts in Several Integrated Directions at Once

Additional Resources

There is substantial overlap between this toolkit and HFMA's Acquisitions and Affiliations and Physician Engagement and Alignment Value Project toolkits. Approaches that lead to further economies of scale or greater alignment between hospitals and physician practices, described in these toolkits, can also be effective approaches to reconfiguring cost

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