David Jacofsky, MD, is the founder, Chairman and CEO of The CORE Institute, a Phoenix-based orthopedic practice quickly growing into one of the largest groups in the nation.
Dr. Jacofsky has prioritized clinical care as well as business management while building his career; The CORE Institute engages in data gathering efforts and risk-bearing contracts for orthopedic procedures. The group also values research and aims to pioneer the next innovations in orthopedics and spine.
Here, Dr. Jacofsky outlines three big healthcare trends and where he sees his organization headed in the future.
Question: What are the 3 biggest business and healthcare trends you expect to affect your practice in 2019?
Dr. David Jacofsky: The biggest opportunities in 2019 include capitalizing on the shift from volume-based to value-based contracting. For those organizations with the tools, expertise and system capabilities to improve total cost of care, moving up the proverbial food chain can become a reality. The longer physicians wait to begin this journey, the less financial opportunity will exist, as current cost saving initiatives and payer reform strategies are lowering the baseline costs against which future programs will be compared, thereby decreasing margin opportunity.
The second related opportunity is the shifting of surgical procedures to the outpatient space. As we optimize the site of service for the right patient at the right time for the right procedure, there is an opportunity to both capitalize on expanding facility reimbursement for these previously inpatient procedures, as well as an opportunity to provide better value for the patient while saving money for the payer or risk bearing entity.
Finally, the use of advanced technologies, such as wearable sensors, telemedicine, and smart devices that integrate with a patient's smart phone or tablet allow for the transformation of post-discharge monitoring, patient risk stratification and the automation of patient condition surveillance.
Q: Where do you see the best opportunities to grow?
DJ: Physician practices should stop thinking of themselves simply as providers of healthcare and should find ways to build networks that allow them to actually manage the healthcare dollars in more direct ways. Physicians are uniquely qualified to know how to add value to healthcare but have generally done little to intercalate themselves in the management and control of these programs. The growth of profit sits in the form of savings if providers create high value networks that capitalize on their ability to manage waste, risk, site of service and outcomes.
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For a deeper dive into the future of spine, attend the Becker's 17th Annual Future of Spine + Spine, Orthopedic & Pain Management-Driven ASC in Chicago, June 13-5, 2019. Click here to learn more and register.