A report from the Advisory Board compares health system strategy in 2003 with that of 2013-2023. Ten years ago, health systems practiced “price-extractive growth.” Growth was positioned as input and a means to advance some larger end, such as funding innovation or extending the mission. One of the key success factors under this growth strategy was expanding market share.
Hospitals today and in the next 10 years will instead grow “because they’re doing something right,” according to the Advisory Board. Leaders must reposition growth as output rather than input, and a key determinant of growth is how a system expands covered lives.
Here are five points comparing health system strategy today versus a decade ago.
Key success factors for system growth
2003: Expand market share, strengthen service lines, exert pricing leverage, solidify referrals, secure physicians and increase utilization
Today: Expand covered lives, compete on outcomes, minimize total cost, assemble networks, offer convenience and expand access
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