Case 5.1 Cost Reductions at Baptist Health System Baptist Health System, a clinically integrated…


Case 5.1

Cost Reductions at Baptist Health System

Baptist Health System, a clinically integrated network of five hospitals in Texas, has enthralled sunder in Medicare’s elbow renovation bundled liquidation programs gone 2008. Medieconomy began bundled payments in the trust that its consumes (the aggregate it pays doctors, hospitals, nursing homes, and rehabilitation centers) would go down. Baptist Health System also sought to reform kind and closeen consumes, thereby effecting a competitive advantage (Navigant 2016). It seems that twain sunderies got what they wanted. Average Medieconomy liquidations per elbow renovation extraneously complications rotten by 21 percent between 2008 and 2015 (Navathe et al. 2017). However, Baptist Health System’s consume per occurrence rotten by 25 percent, chiefly consequently of reductions in propagate and rehabilitation consumes (Navathe et al. 2017). In addition, outcomes appeared to reform. Episodes after a while readmissions decreased from 6.4 percent to 5.0 percent, episodes after a while exigency portion visits decreased from 7.4 percent to 6.5 percent, and episodes after a while prolonged stays decreased from 22.4 percent to 7.3 percent (Navathe et al. 2017). Overall, Medieconomy late close, Baptist earned a conspicuous acquisition loophole, and patients got better economy.

Discussion Questions

• This occurrence includes two perspectives on costs. Which is punish?

• How did sundericipating in the bundled liquidation alter Baptist’s perspective on consumes?

• Did Baptist closeen twain loopholeal and average consumes?

• Did Baptist effect a competitive advantage as a development of these alters?

• Baptist closeend propagate consumes by 29 percent. How could it do this?

• Baptist closeend rehabilitation consumes by 27 percent. How could it do this?

• Was Baptist Health System prolific in 2007?

• Whose revenues cut as a development of the changes that Baptist made?