The newly announced 2014 100 Top Hospitals® winners once again exemplify balanced excellence in performance. These are hospitals that outperform peers across the whole organization, not in just one performance area. Why does that matter?
It matters because the healthcare industry is in turmoil. The Accountable Care Act (ACA) is a disruptive event that requires hospital leaders to maintain high performance while guiding the successful transformation of the organization, and this is critical to the organization’s health. The leaders of the 2014 100 Top Hospitals have demonstrated these skills and are increasingly raising the value provided to the community, while others are falling behind. The 100 Top Hospitals management teams are able to serve their communities with reliable, high performance in the areas we measure: good inpatient outcomes, safety and adherence to evidence-based medicine, excellent post-discharge outcomes, effective clinical and operational efficiency, stable financial performance as a major community employer, and high patient perception of care. These hospitals have leadership teams who are also more consistent than their peers in demanding a balance across these measures. It matters because these are the hospitals that are well managed and most able to make successful change during tumultuous times.
The ACA is a disruptive event for employers and insurers as well.
Employers are increasingly aware that quality is not a commodity, and there needs to be a balance between cost and quality. They are learning that demands for only lower costs can be counterproductive, especially given ACA requirements for increased value and community health. Routine contracting with the lowest-cost health plans, without regard to quality, will result in higher costs and employee dissatisfaction in the long run. ACA transparency requirements for healthcare exchanges are designed explicitly to expose very low-quality health plan networks that don’t improve quality and community health. These far-reaching effects of the ACA are leading employers and providers to warm to the idea of mutually agreed-upon goals to lower costs and improve quality across the community.
Will ACA requirements and incentives result in employers and providers working together in the future?
While it makes sense that employers and providers should collaborate, it’s difficult to know whether the idea is ephemeral or the beginning of a new way of operating for the good of the community. Both talk about higher value, but it's unclear if either will walk the walk. If the concept does begin to gain momentum, well-managed hospitals with proven leadership, like the 100 Top Hospitals, will be the best partners that employers can have. Strong, effective management is NOT a commodity. But strong hospitals with effective management are the most likely to be the best partners of employers to drive increasingly high value and improved community health.
See the full list of winners
Download the study overview and research findings
Learn more at www.100tophospitals.com
Senior Vice President, Performance Improvement and 100 Top Hospitals