As part of its Value Project research, HFMA visits a number of healthcare organizations to learn firsthand how they are moving forward on the transition to value. The following three case studies are composites based on the organizations visited as part of HFMA’s research on reconfiguring cost structure. They represent different strategies, organizational forms, and market conditions.
- White Health. In this case study, a small health system emphasizes internal cost reduction. The system is located in a market with a dominant payer that, to date, has had little incentive to experiment with value-based payment. Nonetheless, White Health sees an imperative to reduce costs in order to fund the full range of services its region needs. Its primary initiatives are focused on labor productivity and supply chain savings.
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- Red and Blue Health Alliance. In this case study, five strong regional health systems come together to achieve advantages of scale while maintaining their focus on longstanding traditions of service. The systems have formed a clinically integrated network, enabled sharing of claims data and EHR data, and are engaging in multiple layers of supply chain initiatives. Together, the systems also form a joint learning community for reconfiguring costs.
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- Green Health System. In this case study, a large, multi-state health system pursues multiple initiatives as part of an integrated approach to cost structure reconfiguration. It is seeking many cost reduction initiatives at multiple levels throughout the organization, reconfiguring and further integrating management teams across the organization, and tailoring population health approaches to local conditions in the different states and regions in which it operates.
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