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Deloitte Center for Health Solutions – “A consumer-driven culture of health.”

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at March 6, 2015

As a bit of housekeeping, you may have noticed that we changed the name of our newsletter from “SoberLawNews” to “SoberZoneLaw” to be more in line with our mission of being a resource for everything “in the zone” of the business and law relating to providing recovery and sustainable sobriety services by our clients, and to also serve as a credible, reliable resource to the community as well. If you know someone who would appreciate our newsletters, please just have them sign up at our website, www.soberzonelaw.com to get more information.

The Deloitte Center for Health Solutions’ “Center for the Edge” recently published an interesting article (attached) entitled “A consumer-driven culture of health: The path to sustainability and growth” which I found interesting. They write: “The dramatic transformation occurring in the US health care system is creating both significant challenges and opportunities for current industry participants and new entrants. Standing still in this environment is not an option.” Within the report, they discuss:

  • The “gilded cage”: For decades, the US health care system has operated under heavy regulation and the fee-for-service (FFS) payment model. While offering profitability, growth, and relatively low risk; it inhibited transparency, competition, and innovation.
  • A tipping point: The Affordable Care Act has brought the market to a tipping point, but not in the way many perceive. The financial pressure from funding its primary objective—coverage for the uninsured—has underminded the FFS margins driving health care providers toward value-based care and pulling the rest of the industry with it.
  • Initial response: Many industry players have focused on consolidation to both retain market power and create value through vertical integration and scale. Unfortunately, while this approach may be able to deliver more efficient and effective care in the near term, in the long-term may suffer from diminishing returns.
  • An alternative path to sustainability and growth: A consumer-driven market that responds to the increasing demand for healthy outcomes will require capabilities and roles that do not exist in the current market. Consumers will demand trusted platforms to access resources and deliver innovative and efficient solutions. Today’s industry players will need to take a hard look at the role they are best positioned to play and then craft a scaling edges program to help transform their existing business.

Again, the report is attached. As always, please feel free to contact us if you have any questions about your business model and positioning yourself for financial sustainability.

Read more here.

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