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2002 resource guide

Looking Back: Reflections from Seasoned CEOs

Featured Articles

Frist TF Jr. Historical Perspective on Horizontal Integration. In Herzlinger, Regina E. Consumer-Driven Health Care. Jossey-Bass. 2002 (in press).
Over the course of the past 30 years, hospitals have emerged from their cottage industry roots and have adopted business practices developed in other industries. The author explains the advantages and disadvantages of a horizontally organized hospital system, through a case study of the largest system-Hospital Corporation of America. Several advantages are as follows: the ability to share timely, accurate aggregated patient care data from a large group of hospitals and physicians (e.g., employee, patient and physician satisfaction surveys, outcome data, JCAHO results); standing national panels of physicians; identified best demonstrated practices; highly qualified workforce; employee benefits; purchasing power; new products/services; access to more sources of capital and the equity markets; geographic diversification; and, state-of-the-art information systems.

Schroeder SA. Reflections on the Challenges of Philanthropy. Health Affairs. 1998 July/August; 17(4): 209-216.
The author looks back on his tenure and discusses the grant-making approach employed by the Foundation, as president of The Robert Wood Johnson Foundation (RWJF). One of the five largest grant-making foundations and the only one of its size to focus solely on health issues, the mission of RWJF is to improve the health and health care of the American people. The author highlights the principal challenges the Foundation faces: accountability (evaluation, feedback, and disclosure); impact; social challenges (race and class, role of government); and, internal management (core commitments, core values).

Warden GL. Challenges and Opportunities in Seeking a Balanced Health System. In Health and Health Care 2010: The Reactions. Princeton, NJ: The Robert Wood Johnson Foundation. February 2000.
The article notes the impact of the Balanced Budget Act on the health care delivery system, specifically, how it severely limited resources. The author discusses changes, challenges and opportunities in the following areas: upward cost pressures, demand for efficiency and productivity, managed care, the voice of consumers, information technology, competition based on quality, health care as a commodity, personnel shortage, the purchasers prevail, and the future.

Other Articles

Warden GL. Chaotic, Shifting Relationships of Purchasers, Plans, and Providers. Health Affairs. 1996 Winter; 15(4): 116-117.
The author, as president and chief executive officer of the Henry Ford Health System in Detroit, MI, provides his view on how purchasers are shaping the marketplace. Noting that private-sector forces have been driving health system change at an unpredicted rate, he outlines three trends: "the assumption of risk by providers in the form of direct contracting, for either "carve-outs" or full capitation; the need to develop quality-of-care/outcome measures for providers and provider networks, not just for health plans; and the weakening financial support for medical education and research."

Whitelaw NA, Warden GL. Reexamining the Delivery System as Part of Medicare Reform. Health Affairs. 1999 January/February; 18(1): 132-143.
The authors, as executives from a large health care system that treats a number of elderly patients, offer their view of what Medicare reform needs to accomplish. Medicare reform must support a coordinated health care delivery system (in place of hospital-centered, fragmented care) and proactive chronic disease management (in place of episodic, reactive care). Consumers, government, community-based agencies, employers, health plans, and others need to develop a shared understanding of what outcomes we want to obtain, what delivery system reforms are required, and how financing can support those reforms.

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