Is Value-Based Care too Much for Independent Healthcare Practices?
I’ve talked about the consolidation in the healthcare market before. In fact, I recently sat down with the folks at StrataPT to talk about PE firms buying up healthcare practices and how small, independent healthcare practices are beginning to feel the pressure. But one thing I haven’t discussed on the show is what exactly has caused the consolidation in healthcare (big players buying up little players). Over the years, many independent healthcare practices have been purchased by either private equity firms or health systems/hospitals. But why?
Part of the drive for this consolidation stems from economies of scale. Big healthcare systems and hospitals leverage their size to combat rising overhead costs, declining reimbursement, and even compliance and the ability to participate in alternative payment models. That last one is an interesting take that I hadn’t considered before. But, over the holidays I read an article entitled Value-Based Payment and Vanishing Small Independent Practices. In this article, the authors argue that one driving factor for the consolidation in the healthcare market stems from the fact that value-based payment models require a lot of administrative work & data management that independent healthcare practices struggle to manage. So, this week, I take a dive into this idea and discuss some ways that independent healthcare practices can maintain viability in the world of big healthcare.
What we cover in this Episode:
- Understanding how Big Healthcare benefits from value-based payment models
- How economies of scale helps improve data exchange and combat decreasing reimbursement in healthcare
- Understanding Value in Healthcare
- Challenges in running independent healthcare practices
- Independent Healthcare practice as a business
- Some strategies that independent healthcare practices can employ to remain competitive
- How to create an effective healthcare positioning strategy to thrive in the current healthcare landscape
We post videos of certain podcast episodes, including this episode, which can find on the YouTube Channel.
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Join Rafael E. Salazar II, MHS, OTR/L (Rafi), principal of Rehab U Practice Solutions and host of The Better Outcomes Show as he explores the possibilities of a new healthcare. Guests range from clinicians trying new techniques and treatments to executives and entrepreneurs exploring new technology, innovative service delivery methods, business models, and organizational structures. Grab a copy of the book: Better Outcomes: A Guide to Humanizing Healthcare. Or, hire Rafi to speak at your organization or event.
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If you run an innovative healthcare company and are looking to develop a strategy that drives business in the form of qualified leads and sales, reach out. I’d love to talk with you about how I can help help you craft a business development strategy that leverages positioning, market research, stakeholder alignment to drive business development strategy for specific healthcare stakeholders.
Rafael E. Salazar II, MHS, OTR/L (Rafi) is a healthcare consultant, speaker, and host of he Better Outcomes Show. He helps healthcare startups, SaaS platforms, and organizations craft clear positioning, humanize the patient experience, and go to market effectively. He’s the author of Better Outcomes: A Guide to Humanizing Healthcare and principal at Rehab U Practice Solutions. His work on Telehealth has been discussed in Forbes, and he’s advised on projects ranging from digital health product launches to multi-million-dollar healthcare transformation initiatives.
Today, Rafi helps innovative healthcare companies like technology startups, platforms, SaaS companies & innovative healthcare organizations develop effective positioning strategy and business development plans through his consulting work. He also leverages his experience as a professor and academic to speak and train on the topics around humanizing the healthcare experience & healthcare innovation. In addition, Rafi also owns and operates ProActive Rehabilitation & Wellness, a multidisciplinary outpatient clinic treating patients with musculoskeletal pain.
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Are you building something innovative in healthcare—like a digital health product, service, or platform that’s aiming to truly improve the patient experience?
I help healthcare startups, SaaS platforms, and forward-thinking provider organizations develop clear positioning strategies, identify high-value offers, and build go-to-market plans that actually resonate with both users and buyers.
Whether you're launching a new product, scaling an existing service, or navigating digital transformation, I bring 12+ years of experience across clinical operations, healthcare innovation, and strategic development.
How I help:
- Clarify your product/service positioning so customers “get it”
- Align your offer with real market needs
- Build a Digital Health Roadmap to scale your healthcare organization effectively
- Support business development with industry-informed strategy
I’ve consulted on projects from multi-million-dollar state initiatives to early-stage product launches. My work’s been featured in Forbes, and I also speak at healthcare events and conferences on topics like innovation, digital health, and humanizing care. I also speak and train at healthcare conferences, events, and organizations on topics related to technology-enabled care, healthcare innovation, healthcare positioning, and humanizing the healthcare experience.
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