16 Apr The Value of the Private Sector in Providing Value-Based Care
With increasing healthcare costs in the United States not necessarily translating to improved patient outcomes, there is a growing need for the healthcare industry to rely on alternative sources of investment. The private sector provides an increasing opportunity for significant long-term returns, making up almost 18% of US GDP (Onie et al., 2012).
An increased focus on public-private partnerships within the healthcare industry could generate an even greater cost savings for hospitals and help to improve overall outcomes. By taking advantage of private sector investments, healthcare organizations and hospitals have a greater chance of achieving an improved care experience, improved population health outcomes, and reduced costs of healthcare per capita. This triple aim of value in healthcare is what many health systems strive for, especially in a time when costs are only increasing.
With certain groups of patients consistently driving up costs, such as those with chronic conditions, it is becoming increasingly difficult for hospitals to sustain profits. However, by partnering with private organizations to provide innovative solutions to ongoing problems, hospitals could potentially see drastic cost reductions in addition to improved patient outcomes.
References: Onie, R., Farmer, P., & Behforouz, H. (2012). “Realigning Health with Care.” Stanford Social Innovation Review, Summer, 2012.