How We Pay for Healthcare
Meet Keith Pitts:
Keith Pitts is the Operating Advisor for Clayton Dubilier and Rice. Previously, he was the Vice Chairman of Tenet Healthcare Corporation and the Vice Chairman of Vanguard Health Systems. Prior to Vanguard Health Systems, Keith served as the Chairman and CEO of Mariner Post-Acute Network as well as the Executive Vice President and CFO for OrNda HealthCorp. He received a Bachelor’s in Business Administration from the University of Florida.
Change in healthcare is evolutionary, not revolutionary. Keith Pitts explores the progression of healthcare from the 90s to today, and provides insights to where the industry is headed next.
- Healthcare Evolution. Consumers have changed their healthcare preferences. More than ever, patients accept virtual care and receiving health in non-hospital environments, such as at-home care. Keith predicts there will be a trend towards the “de-institutionalization” of low-acuity care.
- Government’s Role in Healthcare. The U.S. government is the largest payer in healthcare, and plays a role in innovating payment models. CMMI is constantly testing new models, such as the recent ACO REACH. Keith sees the government as leading the way in pushing providers into value-based care models.
- The Cost of Standby. Healthcare operates on slim margins. A problem with this financing is that ER’s and ambulatory services are needed 24/7, but few want to pay the standby costs of having those services always available.