This week on Talking Pop Health, Eric Tower is joined by Dave Morlock, managing director for Cain Brothers, a preeminent advisory service for health care organizations.
Cain Brothers offers a comprehensive range of services and solutions to meet the M&A, financing and strategic needs of health care organizations. Dave runs the firm's health system M&A and advisory practice across the country. He has previous experience as CEO at the University of Toledo Medical Center and CFO at the University of Michigan Health System.
Eric and Dave discuss the impact of COVID on the health care industry and what can be done to lessen the resulting burden on health systems, concerns for rural and urban health care systems and predictions for moving towards value-based care in the future.
Here are a couple highlights from Eric’s discussion with Dave:
Do health systems need to transform?
“I think a health system should think of themselves as a platform and they are conveners in bringing together the partnerships. The physician partnerships, the home health partnerships, there’s even some health systems that are doing this with back office pieces. They shouldn’t be running the rev cycle. These people over here should run the rev cycle because they do it at scale better than I can. Think about the apps on your iPhone. Apple doesn’t control all of those apps. They don’t create all of those apps. They’ve created a platform; a valuable platform but it’s a platform to bring together the partnerships.”
What does the future hold at this point? Where do you see things going?
“I’m a big believer that we will move to value-based care. We will move away from a fee for service environment. It’s still going to be a long slug. It’s going to be a market-by-market move. And it’s going to have this element of a tipping point by where it feels like ‘I’m good with fee for service, fee for service, fee for service, boom.’ And it’s going to quickly move within a market to value-based service. Health systems have got to have a Medicare Advantage model that works in both a fee for service environment as well as capitated value-based care environment.”