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When the efficient way is the best way: How healthcare providers innovate for success

April 1, 2016 / 5 min read

A paradigm shift in health care is having a significant financial impact on organizations with fee-for-service business models. Improving efficiency can help — if you truly understand what it means.

You hear it like a mantra in the halls of every business these days. Customers want higher quality at lower costs. Shareholders expect ever-increasing returns, and regulators expect compliance with an exploding number of regulations.

Nowhere is this phenomenon more pronounced than in healthcare, where the move is underway from a culture of treating the sick to one of promoting wellness. But the paradigm shift is having a significant financial impact on hospitals, doctor’s offices, and other healthcare providers that have built their business models based on “fee for service.” Medicare, Medicaid, and commercial payers are beginning to base more of their reimbursements on the quality of care provided rather than the quantity. With these shifts in reimbursements, providers will reap benefits in the long term for improving population health and lowering cost of care. But in the short term they’re being squeezed by lower fee-for-service reimbursements and reduced utilization.

Innovative healthcare organizations are responding to these pressures by scrutinizing every process to find ways to improve efficiency as well as patient outcomes.

Dispelling myths of efficiency

Efficiency is one of those terms that everyone uses but few truly understand. Here, we dispel some of the most common misconceptions about process improvement.

Innovative healthcare organizations are responding to these pressures by scrutinizing every process to find ways to improve efficiency as well as patient outcomes.

Making efficiency stick

If people in your organization see process improvements as a “flavor of the day,” they won’t put those improvements into practice, and your organization will never reap the full benefits. To make process improvement sustainable:

Learn how Geisinger Health System has become renowned for efficiency and innovation.

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