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© 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
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Leading the Journey:
Cultivating Success in Healthcare
Insights from Leading Healthcare Executives
Hosted by Modern Healthcare Custom Media
March 11, 2015
© 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.

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Today’s Presenters
Reynold Jennings
CEO
WellStar Health System
Gordon Mountford
Executive Vice President
Huron Healthcare

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TRANSFORMATIVE CHANGE
Gordon Mountford, Executive Vice President, Huron Healthcare

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Fifth Annual CEO Forum
HealthcareCEOForum.com

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The Traditional Business Model is Changing
Commercial insurance is declining.
Government subsidized and self-pay segments are growing.

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Market Demands 20% to 40% Performance
Improvement

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Audience Question: Transformational Change
Which of these five areas do you believe holds the largest
performance improvement opportunity for your organization?
Revenue transition
Scale and integration
Operational excellence
Clinical transformation
Human capital

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RISK AND REWARD / MARKET INTEGRATION
Reynold Jennings, CEO, WellStar Health System

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Risk and Reward / Market Integration
 Tectonic Shifts
 Mega Trends
 Healthcare is Local
 Population Impact
 Risk Continuum

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Tectonic Shifts
Baby Boomer
Total Cost Growth
Medicaid Expansion
Total Cost Growth
US Debt
Interest Burden

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Federal Spending and Revenues (Percent of GDP)

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ACA Revenue Reductions
Estimated Changes to Medicare Fee-for-Service Payments, 2013-2022
Reductions in
Annual Updates
to FFS
Payment Rates:
$415 Billion
over Ten Years
Source: Letter from the Congressional Budget Office to the Honorable John Boehner, Page 5,
Table 2, July 24, 2012 .

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Mega Trends
Financial Payments FFS to Value Consumerism
Aging of America Physician Shortage/Distribution

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Healthcare is Local
 50% Population
in Top 25 MSAs
 #53 MSA: Population
less than 1.0 mm
 #105 MSA:
Less than 500,000
 #185 MSA:
Less than 250,000
Top 25 MSA’s

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Population Impact
24 of 25
Top MSAs
Already
Consolidated
Other 415
MSAs Will
Use Other
4 Models

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Risk Continuum
Clinical Affiliation
Regional Collaboration
Clinically Integrated
Hospital Network
Accountable Care
Organization
Merger or Acquisition

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POPULATION HEALTH
Reynold Jennings, CEO, WellStar Health System

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Population Health
 ACOs
– Pioneer
– MSSP
 CIOs
– Commercial
– Triple Aim
– Total Physician Alignment

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CEO Forum Insights
 Take Reasonable Risk
 Data Parity Has Long Way To Go
 Physician Engagement
 Communication
 Focus Efforts Based On Community Resources

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Audience Question: Population Health
What do you see as the biggest challenge in the shift to a
population health management approach?
Managing across the full continuum of care
Developing data analytics capabilities
Achieving appropriate scale
Aligning physicians/providers
Developing organizational leadership

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LEADERSHIP IMPERATIVES
Gordon Mountford, Executive Vice President, Huron Healthcare

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New Models of Leadership

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Taking Reasonable Risk

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Need for Urgency

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Leading the Transformation Journey
 Requires critical investments in technology, operational
performance, organizational culture, etc.
 All depend on human capital to succeed.
 Three essential elements:
– Operational excellence
– A strategy for transformational change
– The ability to optimize human potential and leadership
 Organizations that combine all three will be in the best position
to succeed.

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Ten Questions for Leaders
How are costs aligned with revenue trajectory?
What changes in patient care revenue streams are forecast?
What increases, decreases, or shifts in utilization are
occurring?
What partnerships or alliances are shaping the market?
Where are the greatest opportunities to drive more value in
care delivery – improving outcomes, experiences, or efficiency?

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Ten Questions for Leaders (continued)
Is there active engagement with physicians and patients?
Do current hard and soft assets align with the strategy,
revenues, and delivery model, and will they scale effectively?
What changes in organization structure and incentives are
needed?
What are the greatest opportunities today to strengthen the
business, optimize revenues, and align costs?
Are there clear, prioritized goals and the leadership to achieve
them?

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Questions
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Title and Date