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Bringing physicians into cost containment

Here’s a look at the need for health systems to include physicians in cost-containment efforts.

Part of the challenge is clearing up the confusion about cost and “value”.

Becker’s Hospital Review writes: “Hospital leaders who have been given the seemingly impossible task of improving quality with fewer resources must bring physicians into the loop, said Neel Shah, M.D., an OB/GYN and founder and executive director of, which curates and disseminates knowledge from patients and frontline clinicians to help health systems deliver better care at lower cost….’

“The way physicians are taught teaches us to be terrible stewards of resources,” Dr. Shah told Becker’s.

Strata Decision Technology CEO Dan Michelson referenced to Becker’s a Health Affairs report showing that physicians control 80 percent of U.S. healthcare spending but, as  only one in five can correctly estimate the cost of common orthopedic devices.

Becker’s said:”The study shows that systems can achieve savings when physicians are included in the cost conversation, as 80 percent of physicians said cost was a key criterion in the selection of a medical device.”

“Yale-New Haven (Conn.) Health System, a long-time partner of Strata’s, has seen its cost-containment efforts succeed by including physicians in the conversation.”

“After implementing an EMR and establishing a common definition of quality, Yale-New Haven implemented Strata’s solution systemwide. The academic health system now uses quality value indicators (QVIs™) to understand differences in cost based on negative quality outcomes. Through the use of QVIs and by including physicians in the cost conversation, Yale-New Haven has reduced spending by about $150 million, while improving the delivery of care.”

To read the Becker’s article, please hit this link.


A program for value-based management

Becker’s Hospital Review reports that “Chicago-based Huron Consulting Group, a provider of business consulting services, and Strata Decision Technology, a provider of cloud-based financial analytics and performance tools for healthcare, have partnered to create a unique software and service solution to drive ongoing value and performance in healthcare.”

The news service reports that the program, said to be the “first software and service developed for performance management,” includes:

  • Assisting providers with “the transition from fee-for-service to value-based care and address the underlying challenges of accurately managing revenue, cost and margin….”
  •  Combining “Strata’s cloud-based technology platform, used by more than 1,000 hospitals and 185 healthcare delivery systems, with Huron’s more than 1,000 consultants in driving performance, to develop data-driven solutions across the continuum of care.”


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