Americans spend more on healthcare than the citizens of any other industrialized country, whether it’s measured in total spending, per capita spending, or as a percentage of GDP. And the rate of growth is similarly remarkable. By 2016, healthcare spending in the U.S. is expected to double from 2 to 4 trillion dollars which equates to over $12,600 for every man, woman, and child in the country and a whopping 20% of gross domestic product. For many provider organizations it would be tempting to look at this projection and see business opportunity. And while a growing market certainly can create opportunities, it is also a cause of great concern for healthcare executives who know that this runaway spending cannot continue unchecked forever. Insurance carriers, patients and employers are demanding greater accountability and demonstration of value for their healthcare dollar, and these demands will only intensify in the future.
To be successful, healthcare organizations need to establish a culture of performance management; that is, an ongoing process to define their strategic direction and then deploy business processes and management systems in support of that direction. This requires establishing performance expectations, and monitoring performance against the plan.
Published: August 1, 2011
Written By: Perficient EPM