Massive Amounts of Disruption Chip Away at Leading Health Systems

Hospital Closing

AZCentral reports that although Arizona’s hospitals look wonderfully healthy, storm clouds are building. Industry disruption, competitive forces, and new business models represent a confluence of factors that will transform healthcare in America as we know it. Some trends:

  • Specialty clinics represent a growing competitive force
  • Payers seek greater deals and lower provider operating margins
  • Over 120 million in American on some form of government-backed insurance—these public sector-based plans don’t fully pay the bills
  • Competitive pressures leading to cost and ultimately value-based models transform the market
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