Hospitals

What are healthcare organizations’ biggest challenges this year?

Hospitals and health systems face multiple challenges as they transition away from fee-for-service models and toward value-based care. A new survey from EY dug deeper into this issue.

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With the transition to value-based care, what are the top obstacles health systems are facing?

A new survey from EY has the answer.

As part of its research, EY surveyed 700 healthcare professionals — including CMOs and CFOs — from U.S. healthcare providers with annual revenues of $100 million or more. The survey was conducted between February 22 and March 23, 2017.

The report points to numerous problems that prevent organizations from delivering better care at lower costs, including a lack of trust and clinical workforce challenges.

These challenges are impacting organizations’ thoughts on implementing value-based measures. The survey found 25 percent of respondents don’t have any value-based reimbursement initiatives planned for this year.

Dana Alexander, a report author and executive director in the Health Advisory practice at EY, chalked this up to health systems having different strategic plans. “Some organizations may be in a ‘wait and see’ mode, with potential regulatory changes from the current administration,” she said via email. “Other organizations may be holding back to see what is working for other organizations.”

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The pressure of moving away from fee-for-service isn’t the only issue hospitals are facing.

The EY survey also revealed many organizations don’t consider reducing medical errors a top priority. Only 58 percent of respondents said they’re actively taking on measures to reduce errors. And a lowly 18 percent have medical error reduction initiatives planned for 2017. Alexander explained certain organizations may not even be aware of this problem, while others may be struggling to handle the scope of solving the issue.

People-related issues also present challenges for healthcare organizations. Only 8 percent of respondents said their organization’s administrative staff members are highly engaged. This, Alexander says, is because the leadership team has not stressed the significance of the role these employees play. “One example of engaging non-clinical front-line staff would be motivating housekeepers to go the extra mile keeping patient areas clean because it can result in a lower incidence of hospital acquired infections,” she noted.

Ultimately, it’s about keeping the patients at the center of the conversation. Yet some hospitals and health systems aren’t doing so. While 93 percent of respondents are taking on improved patient experience initiatives this year, only 26 percent said patient access and satisfaction is a top priority for 2017. Why?

“Engaging patients requires a major paradigm shift in thinking from an industry culture that has not been transparent in sharing information with patients, let alone actively seeking patients to engage in their care delivery,” Alexander said.

Looking ahead, Alexander stressed that hospitals and health systems should rethink what value-based care encompasses. “We aren’t there yet, but leaders are realizing that achieving quality and outcomes will only be accomplished with an engaged and sustainable workforce and with patient engagement,” she concluded.

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