The path to cost transformation.

A healthcare organization's efforts to strategically transform its cost structure in preparation for value-based payment invariably must begin with a systemwide assessment of cost and quality. Such an assessment should focus on three categories of performance improvement activities: margin improvement, business restructuring, and clinical transformation. A work-team approach is recommended, where teams with multidisciplinary representation assume responsibility for assessing specific areas (e.

Reconfiguring your delivery network.

Five tactics can help heath systems overcome common hurdles they may encounter in their efforts to reconfigure their delivery networks for value-based payment: Develop a shared perspective of the changing market. Translate this market perspective into guiding principles. Adopt a "blueprint" approach.

Finding the best strategy for service distribution.

To determine appropriate levels of care and access, while maximizing quality and capital resources, a service distribution plan fully defines: How the organization will serve the market, How each of the system's operations will relate to other operations, How clinical resources will be organized and deployed, The financial impact of the service distribution plan on the overall organization.