Hello again from sunny Clearwater, Florida and the final day of The 2015 OPEN MINDS Performance Management Institute. After a great start yesterday by Arthur C. Evans, Jr., Ph.D., Commissioner, Philadelphia Department of Behavioral Health & Intellectual disAbility Services (see my coverage in Moving Beyond The 10% To Be A ‘High Value’ Organization), I wrapped the institute this afternoon with a summary of the performance management issues facing organizations serving complex consumers – with a focus on the changing landscape and a look at what I see as the “new competition” for serving these consumers, in The (Inescapable) New Value Equation In Health & Human Services: Why It Will Determine Who Succeeds.
The move from fee-for-service to pay-for-value has opened up the landscape to a wide range of new competition. I see the unexpected competition coming from a number of areas:
- “Vertical” Care Management Initiatives – This includes the 645 ACOs with 20% of U.S. market share, over 5,000 medical homes, Medicare Advantage SNPs, Medicaid LTSS capitation projects, and the transformation of managed behavioral health care to vertical models (see The Vertical HMO Arrives and Specialist Options In An Integrated Care Management World).
- New “Tech” Market Entrants Bring New Meaning To “Technological Substitution” – This includes new technology tools that are brand new to the industry (e.g. Google Glass for telemedicine, virtual dictation, and communication), the continued adoption of new telehealth technologies supporting remote professionals, and even the “virtual” professionals replacing staff all together, such as Watson, Cobalt, and My Strength (see Turning Your Clinical Team Into Watson and A Peek At Some Of The New Treatment Technology).
- “Reengineered” Health Care & Medical Tourism – Lean production and frugal innovation are being used to reengineer health care delivery in developing nations, and creating a global “medical tourism” market (see Will Your Market Be Disrupted By ‘Frugal Innovation’? and New Health Care Rules Of The Road & Long-Term Strategy).
- “Retail” Health Care – The 1,760 retail clinics already in operation in 2014 (which is expected to grow to 2,800 in 2015 for 10.8 million visits annually), are shaping up to be competition in the management of chronic conditions (see Location, Location, Location and Preparing For The Amazon Effect).
This new competition raises the bar in terms of the management team competencies needed for success. My take is that executive teams in the health and human service field need to think more about competing with the new wave of out-of-industry competition than the traditional players in the field. What does this mean? If you take a look at Amazon and their formula for success, it is based on five key core competencies – long-term planning, on-demand staffing, customer-focused innovation, analytics, and change-ready leadership.
This is a tall order for many organizations in the field. But I see the “footprint” of these new organizations in most areas of commerce – and believe they will (eventually) come to the health and human service space. Unfortunately, providing good service (or even great service) does not make an organization immune from the turbulence of disruptive innovation. The ability to withstand this turbulence will be greatest in the organizations with executive teams with these skills. Sound like a lot of change? It is. But to quote former President Bill Clinton, “The price of doing the same old thing is far higher than the price of change.”
If you couldn’t join us in Florida, follow us on Twitter @openmindscircle with the official institute hashtag #OMPerformance; and check out pictures live from the event on our Facebook page. And stay tuned in the coming week as we take a deeper dive into some of the great presentations from this year’s institute.