Why Hospitals Need a Population Health Strategy

 

Why Hospitals Need a Population Health Strategy

The Center for Medicare and Medicaid Innovation (CMMI) has set a goal of having every Medicare beneficiary and the majority of Medicaid beneficiaries covered by some type of alternative payment model (APM) by 2030. CMMI considers APMs to be any arrangements whereby providers are held accountable for the quality and costs of care, not just paid based on the volume of services they deliver. The agency also pledged to promote health equity by making it easier for providers serving racial and ethnic minorities to participate in APMs.

Government and private payers emphasizing accountability and value-based purchasing are rapidly replacing the traditional fee-for-service model. What does this mean? This means that delivering services will no longer guarantee payment. Every provider must track patient outcomes for provider-specific population cohorts, and healthcare providers face new financial risks.

Why is it important for hospitals to have executive leadership skills in population health?

Executive leadership skills in population health are crucial for hospitals for several reasons:

  1. Quality of Care: Effective leadership is integral to quality healthcare. Patients often pay the price if a healthcare team is uncoordinated or unfocused. Great leaders facilitate communication, boost productivity, and put others first. This ability is critical to quality patient care since healthcare often requires a rapid response to issues that arise.
  2. Population Health Management: Understanding Population Health is complex and requires a structured educational skill set, often obtained through a PHD or DHSc and a structured program. Population health leadership must be an advocate for community health needs and patient populations and be able to execute overarching strategies.
  3. Health Equity Goals: Leaders must know how to guide the organization toward achieving broader population health and equity goals. Leaders who exhibit these competencies and nurture them in others will move toward a reimagined health care delivery system — one in which all communities and individuals can reach their highest health potential.
  4. Community-Integrated Health Care: As health care providers, hospitals strive to ensure the health of their patients. However, more than focusing within the hospital's walls alone is needed to achieve good health. Experts estimate the effects of social, economic, and environmental circumstances can account for as much as 50 percent of an individual’s health. Essential hospitals—those that treat many disadvantaged patients—are acutely aware of the challenges vulnerable people face, including housing instability, food insecurity, transportation barriers, and other social needs.

In conclusion, executive leadership skills in population health are essential for hospitals to improve patient outcomes, reduce healthcare costs, and promote health equity.

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