Geisinger Health System’s spinout company, xG Health Solutions, may be looking for provider customers for its healthcare analytics tools and consulting business to help them convert from fee-based to outcomes-based care, but it’s pretty selective.
In a presentation to a packed crowd at the JP Morgan Healthcare conference, its CEO Dr Earl Steinberg said: “We are not looking for every customer. We are not looking to be the biggest company. We are looking for customers who are willing and who we believe stand a high potential for success.”
Its biggest challenge is persuading CFOs of hospitals to buy in to its strategy. Steinberg said they tend to be focused on the fee-for-service model which is about filling hospital beds rather than the outcomes model which depends on reducing in-patients and rewarding systems that can help patients stay healthy and out of the hospital.
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The 1-year-old company positions itself as a neutral intermediary between providers and insurers. Its services vary depending on the market the customer is in and their needs.
Steinberg said the majority of its customers are outside its health system. Among them are Phoebe Putney Health System in Albany, Ga., and Integrated Delivery Systems, which it added this month. The Seattle-based group is a joint venture between Group Health Cooperative and Providence Health Care. It is also working with Singapore’s Ministry of Health to re-engineer care in cardiology and orthopedics.
It offers tools to help providers build patient-centered medical homes, healthcare analytics and population health tools, care management tools and consulting services honed at Geisinger. The health system licensed its healthcare improvement IP that it had as of the start of next year through 2023 to xG and xG is licensing to Geisinger all IP it develops.
Some of its services include a patient-centered medical home with data-embedded case management. It also does consulting, offers population health data analytics tools, patient- and population-focused care management, and third-party administration services.
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“Most providers lack the capabilities to make the transition from volume to value,” he said. “Many providers are stunned by the complexity of taking on risk-based models and it prevents them from taking the first step.”
Healthcare systems are looking for new ways to generate revenue, particularly to try to offset the costs they face to implement healthcare reform. Some are packaging the expertise they have developed to help other hospitals implement healthcare reform and overcome challenges such as reducing re-admissions or cutting hospital-acquired infections.
Referencing the health systems presenting at the conference he said: “Many of their efforts will fail. We will look for second-round opportunities.”
[Photo from BigStock Photo]
