Hospitals, like other organizations, have business models that reflect their goals and their customers’ needs. There is no doubt that changes in a hospital’s business model can and does affect the patient experience.
“In the 1990s, many hospitals developed integrated delivery systems that spanned all aspects of health care, even insurance,” says Alan Bleyer, president and CEO of Akron General Health System. “We learned that there is an inherent conflict of interest between providers and insurers. We’ve changed our business model to eliminate insurance and refocus on our core capabilities: inpatient, outpatient and wellness services.”
Akron General’s mission statement, to improve the health and lives of its patients and the community, is rooted in a strong belief that wellness is the key to better health — and, ultimately, to getting health care costs under control.
Smart Business asked Bleyer what impact a mission statement has on the escalation of health care costs and how it offers a solution.
Is it your perception that people are more aware of health care costs, and if so, why?
You can’t pick up a paper or listen to the radio without hearing about increasing health care costs. As consumers increasingly become more directly financially responsible for their own heath care, they will be more concerned about the cost. The introduction of Health Savings Accounts (HSAs) allows employees to deposit their money into savings accounts to be withdrawn for out-of-pocket expenses. Ultimately, the patients will become more prudent shoppers. A patient needing bypass surgery will demand and should be able to compare a range of prices.
We have always encouraged people to gather information before they select a provider. Patients ask a lot of questions and search for information on the Internet. They look for evaluations of the quality and care a hospital offers before making their decisions.
Hospitals should provide data about the quality of services on consumer Web sites, including cost data. A hospital must be as transparent as possible and provide access to programs and costs. We want to make it easy for people to know what to expect.
This is the beginning of a major evolution. When employers before World War II introduced health insurance, it took two decades before health insurance became a universal employer-approved benefit. Similarly, transparency of quality and price will happen over several years. A good head start is our Wellness Center, which is a prevention model.
Why does the cost of health care continue to increase?
Rapid and continuous development of new technology and the aging of the population drive contribute to this complex issue. That makes our industry unique, and these are drivers that the public often does not realize are adding costs. How we should address these issues is not clear. But it is imperative that we reduce the constant year-over-year increases in costs. We believe that wellness plays a significant part.
Why focus on wellness as a big component for reining in higher prices?
Wellness is the best way to avoid hospital visits. Think of how much we could reduce the negative effects of diabetes in Summit County alone if everyone participated in a wellness program with exercise, nutrition and weight loss. The results would be extraordinary.
An emphasis on wellness can make a difference in patients’ lives. After receiving treatment, they can easily access medically supervised rehab and continue it for years. True life changes can keep patients out of the hospital in the future.
A mission statement is a roadmap?
Yes. We will continue to focus on our core capabilities - wellness and patient care - as paramount. Wellness programs improve peoples’ lives. A hospital’s principal focus is to take care of people.
ALAN BLEYER is president and chief executive officer of Akron General Health System. Reach him at (330) 344-7679.
