While the meaning of the word “value” varies depending on the context, it often simply refers to something being a good deal. I bought a shirt and its quality—for what I paid—is great. In this sense, value is an equation in which what you get is on one side (quality and quantity) and the cost is on the other. It is this “good deal” meaning of the word value that is at the heart of value-based care.
The challenge faced by healthcare providers seems almost oxymoronic—improve population health, enhance patient experience, do this, do that—make improvements everywhere, all while reducing the cost of care. The expectation is that providers impact both sides of the value equation. In other words, do more for less.
We have already come a long way in the march from volume to value, and while I believe that fee-for-service care will always play a role in U.S. healthcare, the percentage of patients under alternative payment models and value-based agreements continues to rise.
Stronger Together
I remember a time while playing in a basketball league game when I grabbed a loose ball and proceeded to run as fast as possible toward the wrong basket. The only thing that kept me from shooting was my teammates and others in the stands yelling and laughing while waving their arms. I chuckle at it now, but that was only one of the times in my life when I have wanted to “take my ball and go home.” In reality, that instinct doesn’t usually serve you well, especially when you’re part of a team. Real progress happens when we listen to each other and move in the same direction.
In my estimation, that’s exactly what healthcare leaders have done when answering the call to do more with less. Care coordination and clinical integration, ambulatory strategy, partnerships, technology—these are domains in which an exciting transformation has occurred and continuous improvement is being made.
There is, however, always a necessity to do even more, to innovate more and to continually adapt to an ever-evolving landscape.
“Healthcare is a team sport” is at the heart of where I believe low-hanging fruit is to be found. Strategic collaborations in healthcare are needed now more than ever. Collaborations pave the way for the sharing of ideas, technology, resources and investments, and ultimately, sharing of the burden. Faced with margin pressure, labor challenges and myriad other issues, a health system with executives who don’t make collaboration a significant part of the strategy will be outflanked by the competition.
When it comes to healthcare collaboration, some paths are more well-trodden than others. Provider-payer partnerships, community health partnerships and health system alliances have become increasingly common, as have data-sharing agreements. We have also begun to see an increase in the number of provider-industry collaborations, but there is much more opportunity to be realized in this area.
If an organization in the pharmaceutical or medical device industry is willing to explore strategic collaborations with provider groups, a health system executive would be wise to at least consider the possibility. But what are the questions to ask? What are the key components of a successful strategic collaboration?
Strategic Collaborations—When the Juice is Worth the Squeeze
Over the course of my career, working in joint ventures, strategic partnerships and collaborations within healthcare, I have noticed a handful of recurring predictors of success. Below are some guidelines to consider when evaluating a strategic partnership or long-term collaboration opportunity.
- Shared ambitions/aligned objectives
- What are the mutually beneficial objectives that are also a win for patients? This “win, win, win” scenario is a must have.
- Knowing when to say “no” is important. If it is not clear that the parties’ goals are fully aligned, do not move forward.
- Open communication
- When considering a potential partner, look for open and clear communication from the outset.
- Formal governance structure
- This is a must-have for any collaboration, partnership or joint venture. It should spell out the decision-making process, including navigating disagreements and resolving disputes.
- Long-term commitment by both parties
- This may be the most critical factor, especially when progress is not evident and challenges arise.
- It takes years to make a lasting change in population health. Does your potential partner understand this, and are they committed to the process?
- While more transactional initiatives may have a place, an effective strategic collaboration should contain a clear, multi-year plan with defined KPIs.
As we continue to improve the value equation in healthcare, my suggestion here is to double down on collaboration. First, just be sure you and your potential partner are shooting at the same basket.
Greg Olsen is field vice president, Health Systems (Organized Provider Account Strategy), GSK. The opinions expressed are solely those of the author.
A Premier Corporate Partner of ACHE, GSK is a global biopharma company with a purpose to unite science, technology and talent to get ahead of disease together. For more information, visit ache.org/GSK.