Sg2 Blog

Most health care systems by now have defined their strategy for addressing value-based care (VBC)—even if that strategy is to minimize their involvement in VBC arrangements. To stay relevant, strategies require regular evaluation to consider current trends and market conditions. This is especially true with VBC, since VBC touches every aspect of health care financing and delivery. Any market...

Generative artificial intelligence (AI) has seized the public consciousness, signaling a potential disruption that could be one of the most profound in generations. Large language models, such as ChatGPT, are advancing rapidly, demonstrating an uncanny ability to process natural language and write compellingly (if not always accurately) by predicting word sequences. As more AI tools become avai...

Clinical and technological advances continuously reshape healthcare services and the workforce that delivers them. In a cycle of creative destruction, new roles emerge while some legacy positions are reconsidered. Multiple drivers will also impact workforce needs in coming decades. Examples include an older and more diverse population, environmental impacts that disproportionately affect vulnerabl...

Health care is dynamic, and external market forces are increasingly volatile. Health systems are beginning to see margins stabilize, but long-term financial strength continues to be top of mind for health care leaders throughout the nation. One way systems can look to diversify financial performance is through enhancing their value-based care (VBC) strategy, but how to best do that may take on man...

As healthcare organizations face unprecedented workforce and financial challenges, much emphasis is placed on capacity constraints with rising acuity and regulatory scrutiny as powerful underlying trends. Many systems struggle to find the right balance between their margins and their missions, and often see their capacity realities outweigh their community's health equity needs. Or, if they've lau...

Providers are being asked to take on more financial risk by payers, moving from fee-for-service to value-based care payment models across all lines of business. Following Medicare’s goal of having 100% of traditional Medicare beneficiaries in an accountable care relationship by 2030, other payers such as Medicare Advantage, commercial and Medicaid plans are also placing responsibility on pro...

In today’s fiercely competitive health care landscape, where patient expectations are soaring and access to care remains to be a challenge, your organization can evolve and thrive with a strong focus on consumer centricity. What is consumer centricity? It’s all about putting the needs of health care consumers first. The goal is for health care providers to create much more value for the patients b...

At Sg2, our job is to stay ahead of changing health care trends—and to help you, our members, proactively navigate industry change to benefit your top lines. Over 10 years ago, we introduced the smart growth concept because we foresaw the need for a course change in health care strategy. Smart growth challenged members to invest in services not just clinically appropriate, but also financial...

As part of Vizient/Sg2’s value-based care (VBC) and payer-provider alignment analysis and market research, we review the quarterly earnings calls from a subset of publicly traded legacy payers and VBC-focused entrants. The summary is designed to highlight emerging trends and dynamics in these closely related industries, especially as they tie to VBC. The following post draws from recently re...

Many health systems have intentionally delayed taking downside risk in payment contracting for many reasons. In some cases, organizations aren't ready to perform in these contracts. In too many cases, there's a detrimental level of risk aversion that's impeding health systems from margin growth, particularly in value-based care (VBC) arrangements. Health systems and provider organizations that suc...