A recent roundtable discussion of healthcare CEOs, lead by Harvard Business School Professor Nancy Koehn, revealed an important sentiment: the rush to achieve a quality based healthcare system, many CEOs believe, is risky.
Why is that sentiment amazing? Because, in fact, many believe it's riskier not to pursue a quality based healthcare system. Consider this: a typical healthcare quality project, for a smaller sized hospital, commonly recoups about $300,000 of the costs previously lost to poor quality (COPQ). Healthcare, with our 1-1.5 sigma level of error, is rife with opportunities to improve both quality and value as we recoup incredible costs lost to waste.
And that's not the only evidence that quality improvement and value based reimbursement are the right ways to move.
Yes, fee for service and volume driven healthcare still exist, but providing the highest quality care for our patients is a worthy pursuit in itself...even if the third party payers weren't already moving that way!
Click the link beneath for more info about this recent roundtable discussion on quality metrics in healthcare. (Photo credit to same link.)
While the prospect of a quality-based healthcare system is inspiring, many executives said, the rush to reach it is risky. Participants acknowledged the challenges of shifting an organization that's steeped in an old system, dependent on fee-for-service revenue — and largely at the mercy of payers who set reimbursement standards. So any shift in healthcare standards, participants said, must be weighed against the bills to be paid and the lives to be saved today. Said one leader in the room: “We are driven by the tyranny of the urgent."