JP Morgan Healthcare Recap: Live with Dan Michelson, CEO at Strata Decision Technology
Dan Michelson’s recap of the JP Morgan Healthcare Conference in Becker’s Hospital Review has become a must-read over the past few years – whether you attend the conferences or not. Dan’s organization, Strata Decision Technology, works with more than 1,000 hospitals from hundreds of health systems on their financial planning, analytics and performance. And as CEO, he has a unique view across systems that allows him to neatly unpack and bring clarity to the various sessions and conversations that occur throughout the JPM conference.
Dan’s insight is especially welcome when it comes to the conversations that happen in the secluded confines of the thirty-second floor of the Westin St. Francis Hotel during JPM week. That’s where dozens of CEOs and CFOs from the nation’s largest health systems gather to hear presentations from their peers about high-level strategies in this rapidly changing market.
If you’ve read Dan’s articles and wondered how he got started writing them, or if you’ve wanted to hear directly from him with more context on his thoughts, here is your chance. In this episode of Healthcare is Hard, Keith Figlioli’s conversation with Dan brings his JPM recap to life. This year, based on all the provider presentations and many one-on-one conversations, Dan outlines the 10 questions that health systems should be asking and answering to guide the future of their organizations. He and Keith take a deep dive into these questions, discussing topics including:
Performance. Looking at whether a leadership team should spend their time focusing on performance or building a budget is one of the important questions Dan outlines for health systems. He explains the choices systems have in more detail, using OSF Healthcare as an example. The Peoria, Illinois-based provider shifted away from traditional budgeting processes in favor of a rolling approach and according to Dan, saved 20,000 hours of leadership time and more than $1 million in spend.
Market share. Dan says providers need to change their mindset and think differently about how they define market share as healthcare evolves. In addition to the “share of cup” analogy Dan explained in his written recap, he talks about his experience hearing Walmart’s head of healthcare discuss the retail behemoth’s view of the market. While providers believe they own the patient relationship, he points out how only half of Americans say they have a primary care provider and among the other half, two-thirds haven’t visited their primary care provider in years. With that data, what does Walmart have to say about the market and the patient-provider relationship? “Alright, we’ll take the other 84%.”
The “other five” questions. While Dan’s article framed the ten questions providers should be asking, Keith calls him to task for adding another five at the end of the piece without full explanations. Dan says his point is that the ten specific questions health systems are asking themselves doesn’t really matter; what really matters is that they’re asking tough questions like these at the executive level. However, he explains why he thinks questions about affordability are the ones that leave health systems most exposed right now.
To hear Dan and Keith’s conversation, listen to this episode of Healthcare is Hard: A Podcast for Insiders.