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    Gearing up for 2007

    December 18th, 2006

    [Today we welcome our first guest post from Jared Johnson, a PR professional in a Texas hospital. He makes some good end-of-the-year predictions about the continued rise of transparency and consumer-driven healthcare]

    Guest post by Jared Johnson

    2007 is shaping up to be one of those line-in-the-sand years – one that is predicted to demarcate the winners and losers of the consumer-driven health care movement more than ever before. As Exhibit A, I submit PricewaterhouseCoopers' recent report titled The Top Seven Health Industry Trends of '07. In short, PwC predicts 2007 to be a tipping point for state policymaking, pricing transparency, technology upgrades, consumer-directed health plans, drug pricing, obesity awareness and specialized healthcare facilities.

    As a hospital administrator, I admit I find myself a bit anxious. I see how this whole consumer-driven health care wave could improve our patients' experiences. I see the potential for my hospital to emerge as a market leader without major strategy shifts. I also see such a drastic disconnect between the health industry and consumers that makes any hope for sustained growth short-lived, at best.

    As the father of two young children, I resonate with health care from the consumer perspective as well. Because I am a user of health care first and an administrator second, I cannot ignore the nagging questions about pricing and quality of patient care. I thought I knew my own health plan until a stay in the emergency room took about twice as long and cost about twice as much as I was expecting. It's a funny feeling when you spend your days elevating grievances about your hospital and one day find yourself on the verge of filing one yourself. In times like those, it's crystal clear that calls for transparency are firmly rooted.

    A couple of comments from the PwC report point to ways that hospitals can emerge as leaders and consumer advocates in this time of historic industry shifts. One of its key findings is this troubling statistic:

    "Nine out of ten Americans (90 percent) believe that greed is a major reason that U.S. healthcare costs are rising, a greater number than those citing drug prices, care for the uninsured, business inefficiencies or malpractice costs."

    Sandy Lutz, president of PwC's Health Research Institute, explained it this way:

    "There are a myriad of issues facing health organizations and opportunities for executives to address them, but they need to also focus on closing the gap between how consumers view the industry and how the industry views itself."

    If we take her recommendation as gospel, that makes every individual healthcare professional a reputation manager and PR specialist. Each of us becomes charged with answering those calls for transparency, for explaining perceived gaps in pricing and patient care. We cannot sweep under the rug an e-mail, a blog or phone call that demands recourse for an unpleasant hospital experience. We are to relinquish our role as gatekeepers and instead put more effort into explaining our business to our consumers. That is one way we can reverse public opinion about our industry, one satisfied patient at a time.

    The report further suggests that government, insurers and employers ought to be the ones educating consumers on the benefits of transparency. But what if we, at the hospital level, become the first ones to do it on a national scale? What if we are the ones who drive the amount of transparency data that is made available to the public? Suppose, for instance, that consumers can locate a manageable amount of pricing and quality indicators on a hospital's own Web site rather than wading through a cumbersome third-party site that contains reams of data. Think how a patient's experience can begin days or weeks before he or she sets foot on your campus. It's the entitlement of consumers to more data about our hospitals that is changing our industry.

    It appears that consumer-drive health care is here to stay. As it takes hold, transparency will continue to be an issue. We as hospital administrators can adopt the movement and find ourselves at the forefront of consumer demand, or we can fight it tooth and nail. I suspect we'll see some progress a year from now, when we're reading the 2008 industry report.

    Comments:

    Comment from: Carolyn Kent [Visitor] · http://www.transparentpricing.net
    Excellent post! I think you're right on target in suggesting that hospitals be the ones who drive the amount and type of data that is available to consumers. Hospitals that embrace that as a way of conducting business will position themselves as thought leaders in transparency and consumer-driven healthcare and will earn more of the "market share in consumer trust", so to speak. Best of luck to you in 2007!
    Permalink 12/18/06 @ 10:11
    Comment from: Lavinia Weissman [Visitor] · http://www.workecology.com/redesign2
    Jared, welcome to Hospital Impact.


    I think the movement to patient controlled medical records is going to provoke a lot of chaos and influence the direction of consumer driven health care. It will challenge your thoughts here and your thoughts are important for all to consider as we all work hard to learn a new way in a network of peopel who want to see an excellent health care system in this country.

    We tend to forget that health is a conversation whereby people, including clinicians are always learning about their options and that decision making opens yet another realm of issues that involve law and patient rights.

    There are no easy answers. I continue to wonder what it means that health care in this country cost 200% more than the most expensive of the 25 countries in the European Union and why good health care is so difficult for so many to access.

    It is not a straightforward anwer and the recocgnition in the literature that the US has created a health care system for episodic and acute care that is not serving the 100 M of Americans (of 300M total population) who are chronically ill is another manner.

    Today, where I live a school was evacuated due to a challenge to air quality that led to children becoming ill. The evacuation was done well and calmly and in cooperation with resources in the community that were not medical. The problem was identified quickly, children who required treatment were taken care with and the health of those who did not have a reaction was made priority. This response took in input from health care professionals, school administrators, the faith based community and parents and happened quickly without bureaucracy to care fo the kids and all those working or attending the school.

    This is what is called prevention, precaution and a timely response.

    We have a lot to think about now that is complex. The hospital and its staff are not the only people who need to identify excellent information and act.
    Our health cuts across a landscape of systems and conditions that are not just about who delivers the care and who pays.

    This is my last posting for 2006. I am now off for vacation.

    Happy Holidays to all.

    Lavinia Weissman

    To read my latest article: go to

    http://www.strategy-business.com/li/leadingideas/li00004
    Permalink 12/18/06 @ 12:48
    Comment from: Mari Craythorne [Visitor]
    Interesting views. Especially due to the fact it hits close to home. I'm a paramedic working in South Africa, and I must admit I am getting rather nervous about the cost of emergency care and the rate of Medical Aid/Insurance funds being depleted. Especially the elder of our community that cannot afford more. What else is there then to do about this? It remains a grieving situation.
    Permalink 12/20/06 @ 15:50

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