Written by Prem Urali
I have had the unique honor of meeting many hospital CEOs, CIOs, medical directors and physicians across the country and the world. The one thing that is evident from conversations I've had with them is that the pace of change in the healthcare provider industry has never been as rapid as it is now. The pace at which services are leaving hospital settings for ambulatory outpatient, ambulatory surgery, nursing home and home healthcare has quickened. Home health is a reality for more people than ever, exemplified by the success of Visiting Nurses of New York. Holistic retirement and healthcare organizations such as Erickson Health (Baltimore) have done a great job of keeping older residents healthy and out of the hospital. The mix of patients that access in-patient care also is shifting more towards those on Medicare and Medicaid, or on charity care, a result of the aging of our population and the rising number of uninsured. Insurance premiums are rising at more than double the rate of inflation, due to higher utilization and newer and expensive healthcare services. In addition to raising premiums, payers are also beginning to squeeze hospitals on reimbursements. "Pay-for-performance" is one of the tools that insurers are employing in order to cut back on reimbursements. Insurers are also very concerned about patient compliance and damping increased healthcare consumption.

