Remove Fixed Costs Remove Nonprofit Remove Scaling
article thumbnail

Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

An investor-owned hospital executive whose company had acquired major nonprofit health care enterprises compared the proliferation of contracts to the growth of barnacles on the bottom of a freighter. One thing that distinguishes the typical nonprofit from a comparably-sized investor-owned hospital is the number of layers of management.

article thumbnail

Tackling the “Hotspotter” Patient Challenge

Harvard Business Review

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

article thumbnail

What the Nonprofit Sector Needs to Reach Its Full Potential

Harvard Business Review

The nonprofit sector has limbs. When I say, “the nonprofit sector” here, I really mean what the public thinks of as “charities.” ” When I think of charities I think of the health and human services portion of the nonprofit sector. Imagine eliminating all of the redundancies in fixed costs.