Greetings from New Orleans where today we held The 2019 I/DD Executive Summit. The program juxtaposed the perspectives of payer executives with those of provider organization executives and I walked away with some interesting perspectives on some of the unique opportunities and challenges in the market serving consumers with autism and I/DD.
These perspectives confirmed the discussions I’ve had with the OPEN MINDS team about the strategy issues facing organizations in this market sector. I summarized these factors shaping strategy in my closing session, The New Strategy For Sustainability: How To Prepare Your Organization For A Value-Driven, Community-Focused I/DD Market. My advice to executive teams and boards working on this strategy is follow a 5-4-6 formula.
Five Key Market Drivers—Depending On The State
The autism and I/DD market drivers are very state specific. Across the market sector there are two shared factors. First, there is increased competition for the LTSS budget which is shared with an aging U.S. population, an increasing proportion of the under-65 population with a wide range of disabling chronic diseases, and an increasing number of Americans with Alzheimer’s disease (see LTSS Investment-& Restructuring- Speeds Up). Second, there is new competition fueled by private sector investments and new technology shaping the market (see Disruption (& Strategic Planning) Come To The I/DD Space). But beyond that, the state landscapes are quite different. Whether there is a court mandate for Olmstead compliance, state policy decisions about service covered by Medicaid, or use of Medicaid managed care—all vary by state.
Four Key Market Effects
The five key market drivers are having four effects on organizational sustainability and strategy, regardless of where you operate. The first is that traditional reimbursement for services is flat and, in some cases, declining. This is coupled with the second market effect—a push from payers, health plans, consumers, and caregivers to redefine value. This has brought a push for innovative models for home-based and community-based services, and new competitors with capital to invest in those innovative models (see Are You In A ‘Technology First’ State? What Does That Mean?).
Six Key Competencies For Success
What every executive wants to know is what this market shift means for their organization. The question is how to survive the transition and thrive in market driven by value and focused on “community” alternatives. Our team’s work with a wide range of provider organizations in the market space has found that six competencies are critical. These competencies include:
- Strategy focused on sustainability and customer-centric service line development
- Value-based reimbursement competencies
- Ability to lead (or at least participate in) integrated care coordination—across primary care, behavioral health, support services, and social supports
- Use of technology beyond analytics, providing workforce augmentation in the care coordination and the care delivery process
- Leadership with ability to manage complexity, facilitating sustainability by managing operational excellence and entrepreneurship in parallel
Like most changing markets, the challenges are daunting—but the opportunities are many. To sharpen your team’s leadership skills, don’t miss our upcoming executive institutes.
- Need more on standardizing services and best practices in integrated care? Join us at The 2019 OPEN MINDS Management Best Practices Institute on August 12-14, 2019
- Building a leadership team that is ready for complexity? Join us at The 2019 OPEN MINDS Executive Leadership Retreat on September 9-13, 2019
- Leveraging new technology for competitive advantage? Join us at The 2019 OPEN MINDS Technology & Informatics Institute on October 28-30
And for more on strategy, marketing and new service line development, stay tuned over the next few days as we discuss strategy and innovation in the context of specialty provider organization management. You can follow us on twitter @openmindscircle #OMstrategy.