EP286: Advice for Health Systems in the Face of Consumerism and Value-based Contracts, With John Rodis, MD, MBA
Episode Description
In this Episode 286, Stacey Richter talks with John Rodis, MD, MBA, a high-risk obstetrician and former hospital president, about what health systems should be doing in the face of consumerism and value-based contracts.
WHAT YOU'LL LEARN
✅ Why Dr. Rodis believes an inflection point toward value is coming, driven by employers, physicians, brokers, and government all at once
✅ Why the conversation is shifting from comparing costs to comparing value
✅ What the four domains of value are and how health systems should think about them
✅ Why trust in health systems is starting to erode among purchasers and patients
✅ What health system executives should be doing right now to get ahead of this market shift
WHY THIS MATTERS
John Rodis has held nearly every job in health care, from practicing OB/GYN to hospital COO and CEO, and he sees four forces converging to force health systems toward a real day of reckoning: pressure from large employers, physicians rethinking fee-for-service risk, a new breed of transparent brokers, and cash-strapped state governments questioning a system that profits on the backs of taxpayers. Health systems that don't adjust to this new market — where value, not just cost, is the currency — are taking on real risk, and Rodis argues leaders need to take ownership of that transition rather than wait for it to be forced on them.
MENTIONED IN THIS EPISODE
🔗 EP242, with Dr. Marty Makary
🔗 EP257, with Karl Bilimoria, MD
=== LINKS ===
🔗 Show Notes with all mentioned links: Episode Page
🔗 Healthcare Industry Acronyms and Terms
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00:00 Introduction.
02:16 How the scales are starting to rebalance.
02:44 "There's going to be a day of reckoning."
04:18 The risk a health system is taking by not adjusting to the market.
05:20 Where are the nominal dollars coming from, and where might they come from in the future.
08:04 EP279 with Peter Hayes.
08:15 EP281 with Rob Austin.
08:56 The difference in today's market when it comes to cost setting.
10:02 Why the conversation is shifting from cost comparisons to value comparisons.
11:34 Value is quality over cost.
11:55 The four domains that go into value.
12:32 EP242 with Dr. Marty Makary.
14:01 "The problem in this market: It's not that free."
16:48 Who is best equipped to be an arbiter of value in this new market system?
18:49 "I think that trust is starting to erode."
20:30 How payers are leading the charge on this market change.
21:37 Dr. Rodis's advice to hospital and health system executives to get ahead of this market change.
24:45 EP257 with Karl Bilimoria, MD.
26:53 "I think you have to take ownership."
28:08 "There's no real Four Seasons business [model] in health care."
28:30 "Look at the entire episode of cost."
29:51 Where bundling falls into this equation.
31:45 Dr. Rodis's upcoming book.
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