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“It’s Not So Simple: Why Provider Organizations Need “A Strategy for the Middle”

December 14, Miami Fla (Business Wire). A new BDC Insights paper published in the early edition of the December hfm Magazine of the Healthcare Financial Management Association recommends that a majority of provider organizations in the next five years will need a “Strategy for the Middle,” which accommodates the transition from fee-for-service to value-based contracts, while at the same time addressing nine key market realities and their implications to keep their provider organizations financially healthy.

While the election will result in changes in policy with respect to federal payment models, the authors believe that the push to value is a market-driven phenomenon, and that a shift from fee-for-service to value-based models will continue. Provider organizations will need market specific strategies to address an extended life “in the middle” of this transition.


Bill Eggbeer, the lead author of the article commented: “Employers are not going to back away from a focus on health plan costs. Medicare and Medicaid will continue to struggle to rein in costs and will push options like MACRA, Medicare Advantage, and managed Medicaid. For most provider systems, the question is not whether or when to transition from fee-for-service to value, it is how to be successful in a world with multiple payment models. They need a ‘Strategy for the Middle.’”


BDC Advisors, LLC is a national healthcare consulting firm, which advises the leadership of Academic Health Systems and Provider Organizations on their enterprise strategy, organization development and design, and physician and clinical enterprise strategies. To access the full article, follow this link: Strategy for the Middle. For further information, contact Dudley Morris, Senior Advisor, (dudley.morris@bdcadvisors.com), 312-286-4865.

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