At DHG Healthcare our long-standing perspective regarding industry transformation is founded on the idea that healthcare organizations must responsibly and confidently develop playbooks that enable courageous execution regarding all aspects of risk contracting, across all payers, with appropriate urgency and pace according to mission and market. We call this posture ‘Risk Capability’.
Our position on the need for risk capability is long-standing, and we have sincerely and clearly articulated the need for risk capability as traditional fee for service thinking transitions to broadly defined value-based execution. Our earliest thinking, over five years ago, centered on the transformation of healthcare business risks as organizational focus shifted to the early core themes of revenue transformation, clinical enterprise maturity and enterprise intelligence.
As the health and healthcare industry in the United States has evolved and grown more complex, so too has our perspective. Now, as we continue this journey, we are bringing sharper focus to the industry business risks that are emerging from the foundational elements that formed our original view to Risk Capability 1.0.
Our evolved Risk Capability 2.0 point of view is centered on the implications of the industry’s emergence beyond the often-referenced tipping point, understanding that execution beyond the tipping point even further evolves healthcare organization business risks, centered on five Fundamental Priorities deserving of executive and governance leadership priority, as follows:
Each of these Fundamental Priorities is market- and mission-specific. And each of the dials in our graphic representation points to variations that are unique to you and your market- and mission-specific priorities. Adjusting these “dials” represents your organizationally personal assessment of Risk Capability 2.0, including your unique implementation blueprint and your assessment of accompanying business risks.
Achieving risk capability is, at its core, about business model change and the courage to lead change across and within all aspects of your healthcare organization. Importantly, your assessment of Transformational Agility articulates how culture and governance enable your ability to nimbly execute in today’s unprecedented environment and to recognize and moderate new emerging business risks that will threaten success in your inevitable business model change.