The game has changed. Has your strategy?

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At the Becker's Hospital Review CEO Strategy Roundtable in Chicago on Nov. 5, Steve Lefar, president and CEO of Skokie, Ill.-based healthcare intelligence services organization Sg2, discussed how the changing healthcare landscape requires leaders to reevaluate their business strategy.

Consumers' increased involvement in their healthcare is just one way the traditional model has changed, according to Mr. Lefar. While many people are focusing on the transition from fee-for-service to value, the real change executives need to understand is the change from a wholesale approach to a retail approach in healthcare.

"Retail is not about a place, it's not about a physical location," said Mr. Lefar. "Retail is about a mentality, it's about a mindset for how a market begins to work."

Traditionally, providers gathered other providers and physicians and marketed themselves to insurers. Then, employers made decisions on behalf of their employees and their families, and consumers were given a couple of plan options from which to chose.

"We're finding that today, providers have to sell themselves increasingly to consumers. The old models and wholesale models haven't gone away, but now individuals are making decisions," said Mr. Lefar.

Some examples of areas predicted to change as consumers become more involved include benefit, network and provider selection, and consumers' expectations surrounding the experience of purchasing healthcare.

As consumer volumes shift, there are several strategic questions executives should ask themselves to make sure they are a must-have provider, including:

  • What is our vision?
  • What is our product?
  • What are our strengths?
  • How do we differentiate ourselves from others?
  • Who makes up our market?

Asking such strategic questions can help executives begin to make sure they are meeting the needs of savvier consumers shopping for healthcare.

 

 

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