4 ways for hospitals and health systems to transform care in 2022 and beyond

Last week, we co-hosted our annual series of forums during the J.P. Morgan Health Care Conference, to connect virtually with industry leaders and share insights on several important issues. As we all know, COVID-19 is likely well on its way to becoming an endemic disease. With that in mind, our conference explored the road ahead for hospitals and health systems, suggesting that health executives need to be laser-focused on four key areas of transformation, detailed below.?

Get ahead of the staffing crisis

The issue I discuss most with health CEOs and CFOs right now is the current state of health system staffing. Since the pandemic began, about 20% of health care workers have left their jobs, and employment across the sector remains lower than it was before COVID-19. This, together with the anticipated retirement of more than 1 million nurses in the next 10 to 15 years (one-third of today’s nursing workforce), signals a sustained labor shortage in health. To get ahead of it, executives would be wise to reimagine their approach to hiring and retention — including providing incentives for both top and new talent, expanding the talent pool through upskilling and other programs, and driving innovation in care delivery and back-office operations that will be less reliant on human capital.?

Lean into the technology and digital revolution of health care

The last two years have demonstrated how tech-enabled strategies can transform care delivery. In particular, virtual care has grown exponentially during this period — and it will continue to drive dramatic changes in site of care (e.g., hospital at home). Data and analytics of all types (e.g., clinical, operational, consumer, social determinants) can create a significant opportunity for health systems to drive better outcomes and cost efficiencies.

Prioritize the equity imperative

The pandemic has also further exposed disparities in health outcomes and access to quality health care among underserved and vulnerable groups. It’s true that traditional health care alone is not equipped to address many of the social challenges underlying today’s health inequities. However, we believe that health systems have a crucial role to play in developing practical strategies to help tackle these issues within the broader care ecosystem. This includes embedding health equity within the organization as a key function (like finance or HR) with its own dedicated team. Leveraging data analytics as part of a “whole-person” approach, developing innovative, patient-centered strategies and elevating health equity to the board agenda will help health systems boost care continuity, access and outcomes for their patient populations.?

Grow your ecosystem through creative partnerships, alliances, joint ventures and M&A

Another important takeaway from the last two years (and last week’s conference dialogue) is that collaboration and strategic partnerships (through myriad transaction formats) are essential for health systems to reinvent care delivery. Cross-sector M&A deals (e.g., health and technology; health and retail) have gained traction as a means of enabling organizations to blend their strengths and drive greater impact. This move toward combined capabilities is also evident in the value/risk partnerships and the back-office outsourcing we’re seeing, with new and innovative enterprises coming together at scale in both arenas. In addition, we expect to see a growing number of private equity deals, increasing consolidation across markets and across the value chain, and greater payer-provider collaboration for the foreseeable future.?

Summary

As COVID-19 moves from pandemic to endemic, organizations across the health care ecosystem need to focus on modernizing their business strategies to keep pace with accelerating change. Prioritizing dynamic staffing strategies, technology innovation, and a greater focus on health equity — all in concert with an expansive agenda of strategic partnerships — will go a long way toward driving the transformation needed to enable better care for the long term.?

The views expressed by the author are not necessarily those of Ernst & Young LLP or other members of the global EY organization.

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1?“U.S. Faces Crisis of Burned-Out Health Care Workers,” U.S. News & World Report website, https://www.usnews.com/news/health-news/articles/2021-11-15/us-faces-crisis-of-burned-out-health-care-workers, accessed 13 January 2022.

2 "What Impact Has the Coronavirus Pandemic Had on Health Care Employment?,” Kaiser Family Foundation website, https://www.kff.org/coronavirus-covid-19/issue-brief/what-impact-has-the-coronavirus-pandemic-had-on-health-care-employment/, accessed 14 January 2022.

3 "Nursing Shortage,” National Institutes of Health website, https://www.ncbi.nlm.nih.gov/books/NBK493175/, accessed 13 January 2022.