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Innovation Efforts Get More Targeted as Budgets Tighten
COVID-19 may be stifling normal operations around the country, but it isn’t stopping targeted innovation efforts with strong ROI potential to cut care delivery costs. In fact, 15 of 20 prominent health systems recently surveyed are actively pursuing commercial relationships with health tech startups.
Payers Push to Slow Disease Progression
Payers like Humana and Oscar Health, along with Aetna, represented by its parent company CVS Health, provided updates on how their evolving strategies are reducing health care costs and driving health behaviors. Humana CEO Bruce Broussard said the flurry of payer mergers and acquisitions in the payer field largely have been fueled by a desire to slow disease progression. Humana’s investments in primary care and physician groups illustrate its commitment in this area.
What It Takes to Create Disproportionate Value in Challenging Times
A complicated set of factors involving governmental and private-sector spending on health care will bring about significant changes over the next several years that will effectively flatten reimbursement levels, even as demand for services is expected to keep growing. While that’s generally bad news for providers, those who develop innovative new business models can create disproportionate value in this challenging market, notes a recent McKinsey & Co. analysis.
Providers Cut Costs, Better Engage Patients
Leaders from health care delivery systems, insurers, the pharmaceuticals industry and technology companies converged on San Francisco last week for the annual J.P. Morgan Healthcare Conference and got a close-up look at just how quickly the field is transforming. News came quickly on several fronts, including company acquisitions, the ongoing push among many payers into clinical services as they try to drive down care delivery costs and more.