Service Lines: Working Toward a Value-Based Future

Abstract

SUMMARY 

The primary drivers for service line development have historically been market differentiation and profitable growth. In the current transition to value-based care, however, several other factors are now driving service line strategy. Specifically, in a value-based world, service lines must be patient centric, not provider centric; they must focus on more than hospitals; and they must be market facing.

To build the operating model of the future and succeed in a value-based world, health systems need to reimagine the clinical, operational, and financial features of today’s service lines. In working toward this future state, a coordinated, evidence-based care model with a multidisciplinary care team must replace today’s episodic care. Easy access to prompt solutions and a seamless, low-stress experience for both patients and providers will be new competitive differentiators, along with cost transparency. Outcomes, patient convenience, and the total cost of care will drive future service line relationships between health systems and physicians. The criteria for selecting physician partners will be materially different, too.

In implementing this future-state model, healthcare organizations will need to reconcile several opposing forces and tear down structural and operational silos. Health systems that can navigate through these challenges can realize numerous benefits.