I would like to share some reading I have been doing that is providing a lot of food for thought.
The first source is the book “Healthcare Will Not Reform Itself” by George Halvorson, CEO of Kaiser Permanente. What a compelling read! Mr. Halvorson walks us through many scenarios, while breaking things down to accessible portions. One (of the many) premises that provoke pondering is around the misalignment of financial goals in our healthcare (non)system. As it is structured today, it does not support reform as we generally talk about it. If the focus is to decrease costs by promoting healthier lifestyles or preventive programs, a projected result would be decreased admissions to acute care facilities. However, this approach would, very likely, drain revenue to the IDNs…which diminishes the ability of the IDN to serve the community or even survive. An incredibly complex conundrum. This challenge reinforces the focus on tight operational expense control, of which supply chain is a significant factor. But overall it emphasizes the ongoing need for innovative thought and change management.
Tags: game changer, kaiser permanente, us healthcare operations