Volume 3 Issue 14 July 5, 2016
The famous biologist, Charles Darwin, wrote after years of study that “it is not the strongest of the species that survives nor the most intelligent – it is the one that is most adaptable to change.” There is no better example of this observation than the current evolution of healthcare into “the outpatient way”.
For more than a century, American healthcare has been focused on inpatient or hospital care as the most appropriate location for necessary medical interventions. However, in the past decade this approach has come under assault. According to Modern Healthcare, hospital admissions and inpatient days have declined steadily since 2008, with numerous small hospitals (< 60 beds) closing for economic reasons. The national inpatient facility occupancy rate has fallen from 77% in 1980 to 64% in 2008 and 60% in 2013.
What’s fueling this change? These are a few of the reasons:
Harkening back to Charles Darwin’s quote, inpatient facilities often fit the metaphor of an aircraft carrier trying to make a turn: slow to make a correction, lacking in agility, and trying to catch up. Hospitals will always exist, but they are now being forced to adapt at a time when a number of inter-related forces are driving healthcare into the outpatient way, which offers improved healthcare opportunities for customers and investors.
Tom was the Founder and Managing Partner of VERTESS. He was a Certified Merger & Acquisition Advisor (CM&AA), consultant, and Licensed Psychologist with over 35 years of very successful national experience in the healthcare marketplace, including co-founding and building a $25 million behavioral health/disabilities services company. Tom represented sellers and investors across the healthcare spectrum and was recognized for his executive leadership in the 2005 Entrepreneur of the Year issue of Inc. Tom passed away in December 2018.