Top 5 Takeaways from the Fall 2016 IDN Summit
Alignment sought by health systems leaders
At the IDN Summit in Phoenix the week of September 19, supplier-side discussions revolved around creating better alignment with health systems to further the goals of both parties. It was clear that new and innovative ways of approaching business with suppliers is sought by health systems to further their missions and improve patient care and outcomes. CMR Institute was privileged to host and facilitate two expert panels from health systems to help suppliers understand system issues and concerns, what they are seeking from the pharmaceutical and medical device industries, how they want to be approached, and what knowledge and skills they are expecting from supplier sales teams. Several of the key take-aways are noted below:
- Accountable Care is here to stay. While the ACA may evolve depending on election results, accountable care is here to stay. CMS initiatives are continuing to drive changes in the provider and payer landscape. HHS Secretary Sylvia Burwell has set a goal that 85% of all Medicare fee-for-service (including DRG) payments be linked to quality/value by 2016 and 90% by 2018. Currently, only 50% of payments are linked to value-based payment models. Industry needs to ensure that its sales teams understand the various agreement types, how to negotiate them, how to implement and support them for maximum growth and renewal possibilities.
- New payment models are accelerating creation of new care delivery models. The emergence of value-based payment models like ACOs, advanced primary care medical homes, episodes of care/ bundled payments, Medicare shared savings programs (MSSP), and others are driving health system executives to seek innovative ways to reduce the total cost of care. As these new models are implemented, suppliers need to consider how their products and services can help reduce the total cost of care and improve patient outcomes.
- Industry, health systems, and physician goals need to be aligned. Lack of goal alignment along the care continuum creates inefficiencies and adds to overall cost of care. With new reimbursement models in place, innovative ideas and partnerships are needed to engage physicians differently to improve patient care and outcomes. Collaboration among suppliers and health systems can accelerate adoption of new protocols and their acceptance by physicians.
- Industry has a key role in the new value proposition. Health systems recognize that suppliers can help them achieve their goals, but not all companies are prepared to engage differently. While innovative contracting like risk sharing and pay for performance (P4P) represent a small portion of contracts currently, that will shift rapidly as payment reform initiatives continue to be implemented. Health systems will need to engage suppliers and physicians differently to maintain profitability under these models, particularly as the insurance payer mix continues to shift from large employers to government payers and individual payers on exchanges.
- Customer-facing roles need to engage differently. Changing decision makers are driving the need to ensure all customer-facing roles have the knowledge, skills and capabilities to bring the right value proposition to the right decision maker. Understanding the varying needs of your customers is crucial to having a credible dialogue. Today’s suppliers and their commercial sales teams also need a keen understanding of the changing healthcare landscape and its impact on their customers. They also need to have the skills necessary to engage with new decision makers including the C-suite. The need for education and training in these areas is critical to success in today’s market.
See a full description of our workshops here.