This Week Health

The race heats up to buy Signify Health. Why?

Transcript

Today in health, it. We are going to talk about the future of facility-based care. My name is bill Russell. I'm a former CIO for a 16 hospital system and creator of this week health, a set of channels dedicated to keeping health it staff current. And engaged. We want to thank our show sponsors or investing in developing the next generation of health leaders, Gordian dynamics, Quill health Taos site nuance, Canon medical, and current health.

Check them out at this week. health.com/today. All right. At the beginning of the year, I talked about having your. , points of view around certain things. , , For certain futures that are going to happen in healthcare. An example of. Point of view might be. , what is the future of facility-based care? And that's what we're going to talk about today.

You know how much care is going to be delivered in, on the campus, on the health system campus and how much it's going to be delivered outside of the health system campus. And I think it's important to really understand that you have to know that the current business model that you're operating in, but you also have to have a picture of what the future.

Business model that you're going to be operating in. Right. So you gotta be able to build the technology platforms that enable the future business. Why are we talking about this? We're talking about this because. Amazon is in the process of acquiring one medical. And as soon as that was announced and it's in process of happening, CVS came out and said and announced their intentions.

To acquire signify health. And, you know, that was a pretty interesting deal. Let me give you some of the stuff that signify health. , so signify health value based care. , Organization. Well, actually, let me just give you some stuff, right? From their websites, signify health, connecting a fragmented system. We have a platform and infrastructure to connect payers, to providers and providers to each other while sharing risk for outcomes. All right. There's your value based aspect of it?

Engaging people wherever they are. Our reach into the home community and cross sites of care enable holistic support of individuals, lessening dependence on facility centric care and preventing adverse events. You hear that in middle lessening dependence on facility centric care. All right, they go on and talk about some of the other things we're doing improving outcomes with insights. Our robust analytics enables us to focus resources where, and when they're needed.

From identifying patients to driving interventions across sites of care and finally expanding access to value-based programs. We are aligning financial incentives around health outcomes and expanding access to value-based programs among existing and new healthcare constituents. All right. So why is that important? So, CVS, as a result of, I believe as a result, they may have been in talks around this prior to that.

To, to the Amazon one medical, but it happened after. So it's after therefore because of post hoc, ergo, propter hoc. For any of you. , west wing fans out there. Anyway. So CVS announces their intention to pursue signify health and lo and behold, Amazon makes an offer on signify health and United healthcare makes an offer on signify health.

And so, as I'm looking at this, I'm thinking, man, an awful lot of people are making a bet here. And the bet by the way is a, is a six to $8 billion bet. That value-based care and the future of care. Being delivered outside of the current campus-based facility systems. Is the future that we are going to see.

And these are three of the main players that are doing this. Obviously there's others. Walmart. Is playing in this space, Walgreens and, , and others for that matter. , but you have three main players going after 65 health. And they are saying, Hey, we believe the future of facility-based care.

Is, , is outside of the health system. So. As you know, on Mondays, I like to put a pole together. I put a five day poll together for this. So you still have an opportunity to go out, find my LinkedIn page. If we're not connected, go ahead and do a connection request. And respond to the, , respond to the poll.

So here's the poll. What percentage of care currently delivered at hospital facilities will be delivered at alternative locations. In five years. All right. So that's the pole I put out there and I have to admit, I'm really kind of surprised it's been out there for nine hours. We've got about a hundred votes.

And greater than 65% of people believe that. Over 10% of care is going to transfer. , 10% of care that's currently happening. On. , health system campuses, health system facilities is going to transfer out of those facilities. All right. I gave four options less than 1% around 5% around 10% and greater than 10%.

And far and away, the number one answer is greater than 10%. Now, I don't know if that's going to be true or not, but it's a significant question that we need to answer. Right. And so this is why I talk about what's your point of view on the future of facility-based care? Because if 10% of the care that's currently happening in your hospitals moves off site.

That's okay. As long as you've, you're figuring out a way to deliver that care. But if 10% of that care moves off site and it moves into another organization. This is what we mean by death by a thousand cuts. It's , you know, radiology or imaging in general is moving somewhat out of the, , off the campus. Then you have surgeries moving off the campus, and now you have additional types of services, chronic conditions potentially.

, agent place and those kinds of things moving out of the campus. And so if that trend continues, it's not that any one of those is the death knell to a health system, but it's death by a thousand cuts. You know, one cut, not a problem, many cuts. , you, you start to feel it. So the question becomes, if that, if this is the future, let's just assume that the future is 10%, by the way, you need to determine what you think that number is. Is it less than 1%? Because if it's less than 1% full steam ahead.

, you know, keep doing what you're doing. If it's a around 5%, that might be something worth looking at, but if it's around 10% or 10% or greater, it's something that you need to have a strategy for. And so let's go back to technology and talk about technology. What do you need in order to start delivering care outside of your four walls outside of your campus?

And the answer is you need a platform, right? You need a platform that you can connect devices anywhere that there is an internet connection that could be 5g, could be 4g, , could be, you know, local, , access in people's homes, whatever it is, you need the ability to deploy those devices. So do you have the wherewithal to deploy devices into people's homes and support those devices?

Right. So you think it's no big deal that you put a device, gave somebody advice and they take it home, but invariably, they're going to need. Need support. They're going to mess it up. They're not going to be able to give the devices. We're going to have to look at alternate devices that we're putting into the home devices that can, , identify social determinants information.

Infor our devices. That can ask additional questions. To a sensor data that's coming in and it can identify, Hey, there's some other questions that we should ask. If you're going to rely on people asking all of those questions, you're just going to increase the cost of delivering the care. And quite frankly, we don't have enough of those people today. And even if we were doing that, we need a platform that can take all the analytics and turn it into insights and deliver that to the care providers so that they can just do it.

And by the way, also have the workflows. , they can do it within their workflow and they can, , also provide the highest level of care that they can. But at the end of the day, you're going to want an awful lot of this to be automated and an awful lot of this to be generated insights that get into the hands of the clinician.

So that's why we talk about points of view points, view, manner. What percentage of care currently delivered in the hospital facilities? We'll be delivered at alternative locations in five years. Again, that pulls out there under my LinkedIn. Go ahead. Out there. Find me for not connected and let's connect.

If, , if you haven't responded to the poll, I'd love to have you do that. Cause I'd love to, , see what your perspective is. And, , also, you know, Ask your leadership, if, , if you're a frontline person and you're curious, ask your leadership that specific question. What percentage of care.

Currently delivered at the hospital facilities will be delivered at an alternative locations in five years. That's a question. Every leadership team. Should have their finger on the pulse of, I think, organizations that are in the payer provider world today that are, that are straddling that the United healthcare's, the Intermountain's the UPMCs, the sharps.

, and, and there's others, but essentially those players are going to be fine because they're getting first dollar and they can be, , effective. , because they are getting money that first dollar. They're able to be effective all the way through. , all the way through the supply chain, for lack of a better term, , those that are, are either on one end only, or the other end only of that equation.

They're going to be beholden to, , to the other end. Of of that equation and people are going to have decisions. , to make an options as they pursue their care with some of these new players that are coming into the market. All right. That's all for today. If you know someone that might benefit from our channel.

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, some great candidates and they are giving us some great insights into what's going on in healthcare. So, , subscribe, let people know about it. Love to a. Love to continue to produce this content for the industry so that we can propel healthcare forward. , we want to thank our chill sponsors who are investing in our mission to develop the next generation of health leaders, Gordian dynamics, Quill health tau site nuance, Canon medical, and 📍 current health. Check them out at this week. health.com/today.

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