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Expert Insight

It’s time for systems to change how they prioritize and design their ambulatory strategy

Health systems are turning to ambulatory care to bolster their legacy hospital business, but this is an unsustainable patch as market pressures intensify and care shifts outpatient. Systems must transform their ambulatory strategy today through strong commitments to building cohesive ambulatory capabilities, or they’ll find themselves struggling to compete and survive in their future market.

Outpatient shift threatens legacy hospital business

Concurrent market dynamics threaten the inpatient-dominant health system business.1, 2 Plans are channeling volumes to lower-cost settings. Value-based care initiatives are putting pressure on providers to meet cost and quality targets. Patients are demanding more convenient care options. And competitors are taking advantage of outpatient opportunities faster than legacy health systems can act.2

The result: Care is shifting outpatient and eroding inpatient volumes.

The problem is not simply that volumes are declining. Shifting care and case mix are impacting revenue and margin. Less complex care is moving outpatient — leaving hospitals with cases that are more costly and less profitable. Across the next 10 years, health systems will need to manage and grow their business differently than their inpatient-reliant model today.

 


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AFTER YOU READ THIS
  • You will learn about the market dynamics driving ambulatory strategies. 
  • You will understand the two strategic shifts to transform your approach to ambulatory care.

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