Do You Have a Medicare Advantage Strategy?
The business implications are so big it should be a strategic issue, not just a contracting issue.
Is MA Strategy One of Your Top Concerns?
Does this sound familiar? You know a situation is important before you know what to do about it. For example, retirement savings. We all know how much our futures depend on saving for retirement, but a recent survey shows 65% of Americans are not saving enough. In health care, there’s a similar pattern for Medicare Advantage (MA). In a recent Sg2 survey, 78% of respondents expected moderate to significant MA growth in their markets over the next 10 years, but only 27% listed MA as a top strategic concern.
We all want to secure our futures through retirement savings, but sometimes, there are more pressing things we need to deal with—outstanding debt, saving for our kids’ college education. And just like being distracted from planning for retirement, immediate concerns are always vying for your attention and distracting you from crafting appropriate strategies for success in your health care market. Often, growing commercial share takes precedence as an immediate focus, and reasonably so. But with 71% growth of MA enrollees since 2010, and continued growth projected, Sg2 believes crafting and implementing an MA strategy is a necessary component of your future success.
Where Should You Begin?
Retirement advisors say to start with fundamentals like age and income. Medicare Advantage planning is no different.
In our recent report, Medicare Advantage: Too Big to Ignore, my colleague Mark Larson and I suggest looking at 2 metrics—current Medicare Advantage market penetration and Medicare Advantage market growth—to focus your strategic response to this major payer mix/value-based care shift.
Within these directional strategies are a wide variety of possible tactics. The key is to tailor your response to the market conditions and your organizational capabilities. Too Big to Ignore can guide you through the strategic options and tactical steps you need to help formulate your MA strategy.
What Comes Next?
Once you understand your market’s potential and direction, you’ll need to assess your organizational capabilities. And we can help! Stay tuned for our next post, where we’ll share learnings from the organizational assessments that Sg2 has facilitated with our members.
So, what are you doing to respond to the MA growth in your market? Just like planning for retirement, when it comes to Medicare Advantage, the earlier you prepare the greater the returns.
Additional Medicare Advantage Resources
Sg2 members have a wealth of resources available to help craft the right MA strategy for their markets, shown below. Not a member yet? Contact us today to learn how Sg2 has become the strategic trusted advisor to hospitals and health systems nationwide.
- Report: Developing a Market-Driven Chronic Care Strategy
- On-Demand Webinar: Medicare Advantage—Strategies for Success
- On-Demand Webinar: Chronic Care
- Strategic Countdown: Developing a Market-Driven Chronic Care Strategy