David Johnson: The end of traditional nonprofit healthcare business models?
What is going on with nonprofit health systems? I recently gave a keynote address to an investor forum that included CEOs from roughly a dozen nonprofit health systems. We dug into the structural and environmental challenges confronting their organizations. When queried, over half the CEOs admitted that their asset-heavy business models were not sustainable. Most…
A taxing opportunity for brave nonprofit health systems
Smart nonprofit health systems should pay their local, state and federal taxes as though they were for-profit companies. You did just read that. I contend that it makes business sense for leading nonprofit health systems to pony up and pay taxes. In the long run, health systems that start paying taxes will create a new…
David W. Johnson: Pizza, productivity and the impact of inflation on healthcare finance
The skyrocketing inflation of healthcare costs over the past decades has considerably reduced the value of healthcare in our country, and waste is largely at the root of the problem. A focus on eliminating healthcare waste is logically needed to foster a better, more productive life for all Americans,
David Johnson: Cracks in the Foundation (Part 6) — Overcoming inadequate leadership
Health system leaders today should demonstrate the courage to reject volume-based business models and embrace value-driven care delivery. Improving governance within nonprofit health systems will speed the nation's journey toward consistent delivery of kinder, smarter and affordable care for all Americans.
David Johnson: Cracks in the foundation – Overcoming regulatory headwinds
Healthcare leaders have an important opportunity today use the new regulations to drive value-based care throughout their organizations. But that doesn’t mean completely relinquishing their traditional revenue streams. To seize this opportunity, they should undertake a dual transformation that promotes more efficient operation of their traditional businesses, while nurturing and growing new businesses focused on population health and value.