Sg2’s Impact of Change Forecast Adds Hyperlocalization Enhancement
New feature helps health systems plan for upcoming regional health care market shifts
SKOKIE, Ill, Sept. 19, 2017— Sg2 today released a Hyperlocalization enhancement to its industry-leading Impact of Change® (IoC) Demand Forecast, providing deeper insights into local health care market dynamics than ever before.
From new payment models to policy changes, health care trends are impacting organizations at different rates in markets across the country. Understanding how these trends are playing out locally for hospitals is key to ensuring market relevance and financial stability.
“Our Impact of Change forecast has consistently predicted major health care trends for more than 15 years,” said Sg2 President Aaron Gerber, MD, MBA. “Yet, we know that no two markets are alike and the pace of trends impacting health organizations can vary greatly across the United States. That’s why the Hyperlocalization feature within the IoC forecast is a crucial new offering for our members. With this enhancement, health care providers can plan with confidence and have assurance that their clinical, financial, and operational investments are in tune with actual local market dynamics.”
Using a mid-sized city in the southeastern U.S. as an example, Sg2’s hyperlocal forecast projects a 10-year growth rate of 24.7 percent for inpatient psychiatric services locally, whereas a traditional forecast would have called for only 18.1 percent. In this specific region’s case, a lack of coverage, outpatient psychiatric management services and medication compliance programs will drive up demand for psychiatric emergency department and inpatient services at a faster rate than the national average. Equipped with this insight, local health care providers can better plan for the increase in demand or act upon interventions to curb this growth.
Each year Sg2 offers the latest health care projections for health care services and emerging trends in its IoC forecast. The forecast, a year-over-year projection that looks as much as 10 years into the future, offers insights into inpatient and outpatient demand that enables health systems to plan for the short- and long-term opportunities and risks.
“With Hyperlocalization, we can now model several market-specific factors such as uninsured rates and the effects of high deductible plans, and predict how these trends will shift patient demand at the local level,” said Sg2 Principal and Medical Director Madeleine McDowell, MD, FAAP. “This capability represents a game-changer for health systems engaged in strategic planning for the future.”
Sg2’s Hyperlocalization feature specifically factors in the following elements to create unique, local trend analyses for hospitals.
- Payer coverage: Accounts for state differences in coverage due to expected policy changes.
- Consumerism: Represents the impact of consumerism on demand for outpatient, price-sensitive services.
- Shift to value: Models market timing and degree of inpatient decline as organization move from fee-for-service to advanced payment models.
- Total joint replacement outpatient shift: Models market timing of primary joint replacement procedures (e.g. knee, hip) shifting to outpatient settings.
Sg2’s experts will take you through the process of selecting the Hyperlocalization scenarios that will deliver a localized forecast tailored for their hospital market. For more information, contact Sg2 at 879.779.5600 or firstname.lastname@example.org.
Sg2, a Vizient company, enables health care executives to make better, faster, more cost-effective strategic decisions through a unique combination of industry leading market analytics and unrivaled expertise. Visit Sg2.com for more information.