Health Care Transformation is Underway but the Industry Needs to Work out the Kinks

Change Ahead

Even before the Supreme Court ruled on the constitutionality of health care reform, a transformation in the health care industry was already underway as health care organizations began to consider what shape their business models might take in the context of a post-health care reform world, and take steps to position themselves in this new landscape. Regardless of ongoing political debate around some aspects of reform and the complexities of compliance, health care organizations in the United States now stand at the intersection of change.

Frank Castro, Willis Health Care Practice Leader

Frank Castro, Willis Health Care Practice Leader

Our Health Care Practice recently held their 16th Annual Forum, which brought together leading firms to discuss the most pressing issues of today. I spoke with Frank Castro, our Health Care Practice leader, about the key issues from the forum and what’s on the minds of health care organizations as they adapt to their new environments.

How would you describe the transformation underway of health care delivery in the United States?

All health care organizations have been forced to analyze their business models with a focus on balancing access, quality and cost.

What are the key concerns for health care organizations following the SCOTUS ruling?

Although delivery model changes continue to be a key focus, access will be the next key challenge for health care organizations. Specifically, Medicaid expansion and the development of state exchanges will create different challenges for every health care organization.

Some providers are already on the path toward forming Accountable Care Organizations –what is driving their decision to embrace accountable care and what influenced their model selection?

The local market dynamics will determine both the model selected and the potential success of the model. More specifically, what works in Miami , FL will likely not work in Fresno, CA.

What role will captives play in helping organizations more effectively manage and mitigate emerging risks?

Captives will continue to be used for traditional purposes; however, I think they will be used to manage risks created by partnerships and other alignment strategies employed by health care organizations.

About Colleen McCarthy

Colleen is Director of Communications for Willis North America, where she has worked since 2010. Based in New York,…
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