The Provider Business Model

On May 31st, Lyceum Associates convened a roundtable session in New York on provider business models. Represented organizations included major commercial health plans, an alternative primary care delivery model, a mid-sized employer, a global consultancy, and a national hospital association.

In addition to several specific points, we realized the following, more general takeaways:

• More than ever, health care's participants apply the term 'value' to performance, even if they don't always agree to an exact definition. The result: price, cost and quality now function as interlocking components, and few dispute that the heath care system operates as an economic good. 
• On integration, many advocate it, but they should not view consolidation as the same effect. 
• On care coordination, monopoly pricing risks curtailing wide adoption. 
• On cost rationalization, the rule that 'one person's waste is another person's profit' will constantly contravene.

The provider—especially the independent physician—confronts the greatest economic uncertainty among the health value chain's components, both in terms of pricing power and market positioning.

Over the coming weeks, Lyceum events will consider this uncertainty as a central topic, with emphasis on July 14th at our roundtable summit.

Learn more about Lyceum events here. We look forward to including you!