4 Takeaways from the AHLA Healthcare Transactions Program

With record attendance of over 450 professionals attending AHLA’s Transaction Program in Nashville last week, it’s evident that healthcare transactions are top of mind. One might think the industry would be further down the road in defining the latest iteration of payment and delivery system models, but the healthcare industry appears to be a marathon, rather than a sprint.

Even though progression is moving slower than many would like, there are four things that we at HORNE are convinced of:

1. Physician engagement and leadership is critical to outcomes-based healthcare delivery models.
2. Integration will take on many new variants. Employment is not the integration silver bullet. Many physicians function better autonomously, and bigger isn’t proven to always be better. 
3. Transparency and patient access to quality and cost data will drive demand for better quality of care.
4. Troubled or borderline hospitals that haven’t already acted on their financial futures will settle for less desirable outcomes, not the least of which includes closure. 

As we reflect on where we’ve been and where we’re headed, we see history does indeed repeat itself. Healthcare has faced disruptive change for decades (e.g. rising healthcare expenses led to creation of managed care), but the levels of change and level of uncertainty today have greatly accelerated. While cost and productivity pressures drive disruption on their own, the ACA has been a catalyst for more and faster change.

Responding rapidly is hard. The more successful you were in the past, the harder it is to change.  Healthcare is heavily regulated, and stakeholder interactions are complex. But the market doesn’t care about any of this. Change is happening. How we manage it will determine our success or failure.