The emergence of value-based payment methodologies and the increased emphasis on transparency will have profound implications for academic medical centers (AMCs), according to the latest research report from HFMA's Value Project. AMCs have unique attributes that represent both opportunities to be leveraged in the emerging payment environment and challenges to be overcome as they move toward value-based business models.
One key challenge that emerged was the need for AMCs to develop a centralized governance structure. AMCs often have different boards, leadership structures, and mission statements governing each of their teaching, research, and care delivery functions. These distinct governance structures make it challenging for AMCs to make decisions nimbly and strategically. Furthermore, many AMCs report the absence of dialogue among academic departments, specialists, the hospital, and other potential elements of a coordinated, detailed approach to care management.
The CFO of one academic center noted, "We are using the possibility of a bundled payment project not because we think it will be a big winner for our system, but just to get an early dialogue going between the key elements of our system."
The goal should be a centralized leadership structure that can make critical decisions on behalf of the AMC.
UAB Hospital, part of UAB Health System in Birmingham, Ala., is taking a step in this direction: A centralized structure exists, but leaders need greater authority to make decisions on behalf of the system. In addition, UAB's system leaders require more agile decision-making capabilities. Like other academic medical centers, UAB is instituting a funds-flow model that combines all revenue from clinical practice and hospitals into one operation. Key benefits of this approach include the following:
Partners HealthCare in Boston operates within an active state governmental and legal environment and illustrates the following examples of how AMCs may need to change over time to form a more highly integrated organization.
The Partners strategy also envisions:
Additional mechanisms to bolster centralized leadership are to develop a common strategic plan and to determine management-level goals and incentives that help align the care delivery, research, and academic functions of the AMC.
This article is an excerpt from The Value Journey: Organizational Road Maps for Value-Driven Health Care, published by HFMA.
Conifer Health Solutions: Helping Providers and Employers Build a Foundation for Better Health
Cerner RevWorks: Readying Your Revenue Cycle Performance for Tomorrow
Ontario Systems: Optimizing Accounts Receivable in a Rapidly Changing Environment
Steve Scibetta, senior director of channel sales for Ontario Systems' healthcare product line, shares insights into effectively managing receivables.
Optum: Enabling Transformative Change
Elena White, vice president of risk, quality, and network solutions for Optum, discusses how healthcare providers can leverage data and technology as they enable risk in their organization.
Somnia: Bending the Healthcare Cost Curve Toward Improved Anesthesia Value
PMMC: Navigating Revenue Cycle Management Challenges as Value Based Purchasing Emerges
Burgess: Simplify the Business of Healthcare
J.P. Morgan: Managing Cybersecurity and Protecting Patient Data
Brian DiPietro, Managing Director, Commercial Bank Technology, JPMorgan Chase & Co., discusses the importance of evaluating your cybersecurity protocols to help prevent malicious data breaches.
TransUnion Healthcare: Smarter Revenue Cycle Solutions
Gerry McCarthy, President of TransUnion Healthcare, discusses industry trends contributing to higher bad debt and what to do about them. Gerry is responsible for the strategic direction of the healthcare business and expanding its footprint in the healthcare market overall. He has more than 20 years of experience in healthcare information technologies.
Deloitte: Creating Value with Effective Care Management
Scott Kolesar, principal and senior leader in Deloitte Consulting LLP's Value Based Care practice, and David Wennberg, MD, MPH, adjunct associate professor of The Dartmouth Institute and former chief executive officer, Northern New England Accountable Care Collaborative, discuss the challenges and competencies involved in creating a care management organization.
American Express: Streamlining Supplier Payments and Boosting Revenue
Andrew Jamison, vice president in the Global Corporate Payments division of American Express, discusses trends and opportunities in supplier payments.