A review of the panel discussion from the June 13th Columbus, Ohio Networking Event.
Panelists: Cathy Denning (Vizient), Sharyl Gardner (Midmark), Sean McNally (Cardinal Health), Randy Oostra (ProMedica).
Key Topic: Changes in Healthcare
The recent changes over the last few years in healthcare have caused quite the turmoil in the industry. Some of the most significant causes and effects are:
- Value-base Purchasing
- Mergers and Acquisitions
- Culture change
- Reimbursement models, etc.
Change is perceived either as a challenge and opportunity or as events causing fear and distress. There are two major questions that organizations face today: How can we manage change? How can we lead through change?
Q: Which healthcare M&A has been surprising so far?
A: (Sharyl Gardner): For Midmark Corp., the most surprising M&A has been the Hill-Rom-Welch Allyn acquisition, a direct competitor of Midmark. M&A’s challenge competitiveness and it’s all about “survival of the fittest.” M&A activity is also about reinvention and expanding one’s product/service offering (for example, Midmark’s acquisition of Versus Technology, Inc., the most-deployed real-time locating systems (RTLS) provider in healthcare. The acquisition of Versus allows Midmark to create a unique offering of clinical workflow solutions that encompass clinical workflow services, RTLS technology, medical equipment, diagnostic devices and design assistance, resulting in improved efficiency within health systems. http://www.versustech.com/rtls-news/press-releases/midmark-acquire-workflow-technology-firm-versus-technology-inc/).
Q: How do companies in healthcare create value for their shareholders beyond product-buy?
A: (Cathy Denning): For organizations that are “member-owned,” such as Vizient, the shareholders are easily identified: the members. The main focus must be on the member/customer. Cathy interprets “value beyond product” as providing the best quality for best price to its members, which translates into striving for better outcomes. Value can be created through the introduction or expansion of data analytics for every service line offered.
Q: How does the organizational structure change during a merger and what is the most effective way to manage it?
A: (Cathy Denning): After a merger or acquisition, such as the joining of VHA, University HealthSystem Consortium and Novation forming Vizient, it is vital that leaders evaluate the quicks and characteristics of the overall culture of each legacy company. Vizient’s Chief People Officer is dedicated to evaluate, build and enhance a joint culture based on the various strengths, not necessarily eliminating and replacing existing culture altogether. It is crucial that through any set of changes, that employee continue to be passionate about the customer and make the customer a priority.
Q: What has been the impact of industry consolidation on innovation?
A: (Randy Oostra): Where innovation is concerned, scale matters. The larger the organization, the more resources and strategic planning it can offer.
For example, ProMedica has created an innovation committee, which along with other non-profit organizations, has raised significant capital ($15M-$20M) to support local start-up companies. ProMedica held its 4th Annual Innovations Summit in early June 2017, which aims to foster creativity within its own system, as well as the community. To further support its mission, the health system has partnered with The Toledo Museum of Art, and during its 4 years, over 120 patent applications have been submitted for approval.
On both a corporate and individual level, we all need to commit to re-invent ourselves every day in thinking and doing.
Mr. Oostra posed the questions: Do organizations have strategic planning sky days? What systems and processes do companies have to foster and develop creativity and new ideas?
It seems like this is a good time to reflect on these questions. Perhaps, this is a good time to re-group, evaluate and outline a new path forward.
Stay tuned for Part II!
By Valeriya Stoyanova, Supplier Relations, Administrative Assistant, Concordance Healthcare Solutions