Steve Hyde is a Principal at Stroudwater Associates and is their Value-Based Health Care Practice leader. Stroudwater provides high-level advisory services to help its hospital and medical group clients meet the demands of their most pressing challenges. Our service expertise is highly focused on the mission-critical strategic, operational, and financial areas where our perspective offers the highest value. We focus on eight major practice areas:
- Value-Based Health Care
- Hospital and System Strategic Planning
- Facility Planning and Financing Qualifications
- Capital Planning and Access
- Strategic Master Facility Planning
- Physician-Hospital Alignment Services
- Mergers, Acquisitions, and Affiliations
- Rural Practice
The Value-Based Health Care Practice: Steve Hyde Practice Leader
Growing interest in ACOs and provider-based health plans is a response to growing recognition that hospitals and doctors must wean themselves from FFS revenue dependence in favor of compensation arrangements that reward value—rather than volume—by capturing the potentially massive savings generated by high-quality, lower cost medical care. These benefits result from better chronic disease management, reengineered treatment processes, improved prevention, and heightened cost-consciousness of both patients and providers. A major problem with value-based care is that much of its savings results from lower utilization of hospital-provided services, such as ER, inpatient care, specialty physician services, and advanced imaging. The current FFS system penalizes such behavior by cutting hospital revenue and leaving the savings with third-party payers. Alternatively, effective risk-based reimbursement mechanisms reward providers, first, by routing the savings to them; second, by enabling market-share gains in an increasingly value-drive market; and third, by alleviating capacity constraints for over-taxed providers.
Stroudwater Associates has assembled an experienced team of consultants—led by former managed care CEO and actuary Steve Hyde—to assist quality-focused hospitals and medical groups to strategically develop and implement value-based business models that optimize financial performance, minimize investment costs, and protect against avoidable risks. By utilizing mechanisms such as value-improvement programs, ACOs, retail pricing, shared savings, quality bonuses, capitation (partial or full), and provider-sponsored health plans, the Stroudwater team provides a comprehensive set of solutions that enable quality-focused providers to thrive in the emerging era of value-based medicine.
For more information on Stroudwater and its other practice areas, please visit our website at www.stroudwater.com.