X-Boxification of Healthcare

The lesson for healthcare providers is that new reimbursement models such as various accountable models (e.g., ACOs, Health Homes, etc.) will have entirely different success metrics. They will also have new competitors. For example, a hospital-based ACO is just as likely to be competing with a large multi-specialty practice running an ACO versus another hospital. The latter doesn’t have hospital revenues to protect so they can be more aggressive. There’s also non-obvious competitors for lucrative areas of health systems.

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