Health care's fee-for-service system was never perfect, but for years things seemed to hum along with the occasional bump in the road. But the industry has now hit a ceiling when it comes to cost growth and providers have fallen into a "vicious cycle," says James E. Orlikoff, health care governance expert and president of Orlikoff & Associates.
Now, hospital leaders must strive to enter the new "virtuous cycle" that moves toward a much more transparent and efficient value-based approach than years past. That should help drive down costs, he says, but will create new challenges as efficiency breeds excess capacity, reducing pricing power. How will hospitals respond to this shift?
In the latest H&HN Daily video interview, Orlikoff tries to answer that question.