On May 25th, Randy will give a presentation on “The Role of Philanthropy in Healthcare’s Transformation: Why Cost Containment, Alone, Will Not Sustain Systems” and will also serve on the panel “Ideas and Strategies to Bring in New Sources of Revenue” at Becker’s Hospital Review 11th Annual Meeting. As part of an ongoing series, Becker’s is talking to healthcare leaders who plan to speak at the conference, which will take place on May 24-26, 2021 in Chicago.
To learn more about the conference and Randy’s session, click here.
Question: What, from your perspective, is the biggest challenge about the future of work for hospitals, and what can they do about it? (i.e. automation, desire for more flexibility, clinician shortages, etc.)
Randy Varju: There’s a great deal of pressure on managing the costs of health care. Along with this comes the necessary focus on identifying and delivering diverse forms of revenue. There’s then an opportunity to reinforce philanthropy as a strategic imperative that shouldn’t be overlooked. Aligning stakeholders with a shared vision speeds impact. On average it takes $17 to $20 of patient revenue to equate to the net impact of $1 of philanthropy. And this is done with an ROI that is typically $4/$1. Like in higher education, those with deep philanthropic roots will have the resource options to more effectively weather change and drive innovation.
Q: What’s one lesson you learned early in your career that has helped you lead in healthcare?
RV: Philanthropy is the culmination of everything working well. When team members are engaged, caregivers are committed, and we apply the best of our combined efforts, patients and families are grateful. It is then part of their healing to see that others benefit as they have.
Q: Where do you go for inspiration and fresh ideas?
RV: For inspiration, we’re fortunate that our patients and families offer countless stories of encouragement. I also pull on my own experience with family members that have faced and overcome significant health challenges. For new ideas, I value the insight from benchmarking with other systems. Through the Association of Healthcare Philanthropy, I’ve been able to make a number of priceless connections within the Health System Philanthropy Group.
Q: Healthcare has had calls for disruption, innovation and transformation for years now. Do you feel we are seeing that change? Why or why not?
RV: No question. Transformation requires a certain amount of disruption. But it also is where many of the innovations will be found. We’ve already seen opportunities to define new shared-impact approaches for issues that affect our local hospitals, regions and growing footprint. We shouldn’t feel like we’re in this alone. Most hospitals were built through significant philanthropic gestures. I’m confident the same will hold true as we enroll philanthropists in effort to discover new solutions that redefine health.
Where do you go for inspiration and fresh ideas? Beckers, of course! In all seriousness, the conference speakers are the best in the industry and the sessions are relevant to leaders in hospitals both large and small. And I don’t have to look any further than my inbox daily for the most recent healthcare news and best practices.
What do you see as the most exciting opportunity in healthcare right now? The most exciting opportunity in healthcare today is the move to value-driven care with the patient at the center focusing on wellness and prevention instead of treating signs and symptoms with volume-driven sick visits and hospitalizations. Accountable care, the merit-based incentive payment system (MIPS) and value-based payment programs are driving providers from volume to value-based care with incentives to reward both the physician and the patient!
Healthcare has had calls for disruption, innovation and transformation for years now. Do you feel we are seeing that change? Why or why not? Yes, hospitals that are driving change and transformation are receiving high marks in quality and patient-satisfaction. They are investing in technology to coordinate care and making access easier for their patients. At the same time, they are educating and preparing their workforce to be responsive to innovative change. The age of volume-driven fee-for-service medicine is gradually giving way to value-based care. Hospitals must transform to become organizations that reward value instead of volume and develop delivery methods that use evidence-based practices, procedures and technologies to attain optimal outcomes and achieve greater efficiencies. Many primary care providers have heard the call for value and are joining ACO’s and working to meet this demand. Sadly hospitals that haven’t transformed to ensure the highest quality patient-centered care and the most competitive prices are being bypassed by the primary care physicians, the patients and the payers. “
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
