Healthcare providers need to embrace the complete change of mindset, structure and operations required for the shift from an inpatient to an outpatient business model. That means understanding the reasons that a successful company can find itself trapped in the wrong business model:
Not taking the market change seriously. When you are successful, it's easy to be lulled into a sense of security. As former Intel CEO Andy Grove put it, “only the paranoid survive.”
Not wanting to ruin a good thing. As new Intel CEO Brian Krzanich said, “If you had the keys to a kingdom that generated $55 billion in revenue, wouldn't you worry about being the one who caused the cratering of this jewel?”
Not internalizing the change. The shift to an outpatient focus requires a change in mindset far beyond setting up outpatient centers. Deep involvement in the community is required to understand and manage its health.
Inability to pull the trigger. The complexity of rightsizing your business, reengineering care delivery and transforming your cost structure is so great that some organizations find they can't make that move—at least not promptly enough.
Acting too late. Great organizations know when to cross the chasm to a new business model. In healthcare, acting too late might limit your options for crucial partnerships, physician relationships and service area strength.
The glory days of inpatient care are over. Providers need to let go of their allegiance to the inpatient business model and embrace the total transformation required for the outpatient, community-based business model.
