Health Systems Built For The 1% Face Big Population Health Gaps


There is no better place to generate staggeringly high bills than at a hospital. For entirely rational reasons, healthcare providers invested vast sums of money on IT systems optimized to maximize billing opportunities. Unfortunately for hospital-based health systems, this is the polar opposite of what will drive success in the future. From a revenue-generating perspective, ordering as many procedures and interventions as possible created success in the old reimbursement model that is currently in its death throes.

Even for people with chronic conditions that consume 80% of healthcare resources, hospitalizations should account for less than 1% of their life. Yet, the vast majority of health IT budgets have been centered on large hospital-based health systems. In the rapidly growing population health-based ecosystem of the future, it’s well recognized that a hospitalization represents an abject failure in the vast majority of incidences — something that should have been caught earlier or prevented entirely that results in a high-cost, high-risk hospitalization.


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