Is Value-Based Care Too Much for Independent Healthcare Practices?

I've talked about the consolidation in the healthcare market before. I recently sat down with the folks at StrataPT to talk about PE firms buying up healthcare practices and how small, independent healthcare practices are beginning to feel the pressure. But one thing I haven't discussed on the show is what exactly has caused the consolidation in healthcare (big players buying up little players). Over the years, many independent healthcare practices have been purchased by either private equity firms or health systems/hospitals. But why?

Part of the drive for this consolidation stems from economies of scale. Big healthcare systems and hospitals leverage their size to combat rising overhead costs, declining reimbursement, and even compliance and the ability to participate in alternative payment models. That last one is an interesting take that I hadn't considered before. But, over the holidays I read an article entitled Value-Based Payment and Vanishing Small Independent Practices. In this article, the authors argue that one driving factor for the consolidation in the healthcare market stems from the fact that value-based payment models require a lot of administrative work & data management that independent healthcare practices struggle to manage. So, this week, I take a dive into this idea and discuss some ways that independent healthcare practices can maintain viability in the world of big healthcare.

What we cover in this Episode:

-Understanding how Big Healthcare benefits from value-based payment models
-How economies of scale help improve data exchange and combat decreasing reimbursement in healthcare
-Understanding Value in Healthcare
-Challenges in running independent healthcare practices
-Independent Healthcare practice as a business
-Some strategies that independent healthcare practices can employ to remain competitive
-How to create an effective healthcare positioning strategy to thrive in the current healthcare landscape

Full episode note: https://rehabupracticesolutions.com/better-outcomes-147

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