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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