A new era is dawning for US hospitals. Facing death by a thousand cuts, hospitals won’t be able to survive by fine-tuning their business models. They are going to have to recast themselves altogether. Over the next 10 years, the nation’s health systems will rebuild themselves for the millions of Americans who come to them seeking care, wellness and sustainable, affordable paths to health in the burgeoning New Health Economy. An analysis by PwC’s Health Research Institute concluded that four provider system models are expected to dominate the future.
Meanwhile, all providers will have to achieve basic competency in foundational areas—such as reaching a competitive cost position, balancing risk-based and fee-for-service reimbursement, delivering quality holistic health, innovating with and getting value out of technology, and translating consumer insights into better experiences.