The right strategy and perseverance can make an IDS profitable.
Results of a recent study of 11 leading integrated delivery systems (IDSs) belie the common perception that IDSs are incapable of turning a profit. The study determined that the primary factors driving the poor financial performance of IDSs are organizational complexity, payment reductions mandated by the Balanced Budget Act of 1997, and a general lack of foresight regarding financial problems when embarking on an integration strategy. By implementing a wide range of initiatives to stem losses and improve financial performance, several of the case-study IDSs have accomplished dramatic financial turnarounds over the past three years, and all have achieved consistently stronger financial performance.
Coddington
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McManis Consulting, LLC, Denver, Colorado, USA. dcoddington@mcmanisconsulting.com
Moore
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D003284:Contract Services / Q000191:economics; D003363:Cost Control; D019033:Delivery of Health Care, Integrated / Q000191:economics*; D001330:Electronic Data Processing; D005376:Financial Management / Q000379:methods*; D006302:Health Services Research; D007182:Income / Q000639:trends; D008329:Managed Care Programs / Q000191:economics; D019982:Organizational Case Studies; D017749:Total Quality Management; D014481:United States