In new health care landscape where inpatient volumes are falling and Medicare, Medi-Cal and commercial payments to hospitals are flattening and/or decreasing, radical change and major financial investment are required by hospitals while facing the most problematic economic outlook in 20 years.

In the midst of hospital strategic turmoil, health plans are diversifying into other health care business lines, including care management and more efficient delivery models. Similarly, physician groups and IPAs are becoming more willing sellers to health plans in the decidedly nonhospital-centric environment. To successfully cross the transformational chasm, hospitals must fundamentally change their operations, including how and by whom care is delivered, and create a new level of permanent cost and quality efficiencies.

Given all the threats to hospitals, HASC has the opportunity to provide support and leadership. At the November 16 HASC Board meeting, the Board approved five major Strategic Initiatives that address many of the current issues hospitals face:

• Create awareness through local advocacy
• Establish successful transitions to coordinated care
• Strengthen performance improvement competencies
• Optimize hospital performance with data analytics
• Lead quality improvement and patient safety initiatives

As you read the full article, we welcome your input and advice as we advance health care transformation and promote hospitals’ expanded role in the delivery systems of the future.