Navigating the Turbulent Waters of the Healthcare Economy

Welcome to Reimagining Rural Health, the podcast exploring the unique challenges and innovative solutions shaping the future of healthcare in rural and underserved communities. I’m your host, Alan Helgeson.

In this episode, we’re diving headfirst into the choppy waters of the healthcare economy with health economist, Ford Koles. Buckle up as we navigate rising costs, workforce shortages, and discover how systems like Sanford Health are staying afloat amidst the storm.

Charting a Course Through Shifting Sands

Joining me today is Courtney Collen from Sanford Health News. Courtney, take it away!

Courtney: Thanks, Alan! I’m thrilled to have Ford Koles with us today. Ford, you’ve got your finger on the pulse of the healthcare industry. What’s the most crucial thing healthcare leaders need on their radar as we look beyond ?

Ford: Courtney, the U.S. healthcare system is undergoing a seismic shift. We’re seeing a move away from reliance on commercial reimbursement and an increasing dependence on Medicare and Medicaid. This puts a real strain on the traditional cross-subsidy model and necessitates a complete rethink of our cost structures.

Riding the Waves of Challenges and Opportunities

Courtney: So, given this changing landscape, what are the biggest hurdles and, conversely, the most promising opportunities you see on the horizon?

Ford: Three words: labor, supply chain, and capital. Labor costs remain a significant challenge, exacerbated by the disruptions of the COVID- pandemic. Supply chain issues, also pandemic-induced, have unfortunately hampered the progress we were making pre-COVID. And, of course, the healthcare industry always faces the need for ongoing capital spending, investing in infrastructure and technology.

Courtney: Sounds a bit like a perfect storm, Ford. But you mentioned opportunities, too? Tell me more about those.

Ford: The silver lining is that necessity is the mother of invention, right? I see incredible potential in artificial intelligence to revolutionize the healthcare workforce and unlock efficiencies we haven’t even dreamt of yet. Plus, this whole supply chain mess has forced us to get serious about optimizing our supply chains, which will benefit us in the long run.

The Human Impact: Patients and Decision-Making

Courtney: This all sounds like a lot for healthcare systems to handle. How does this tough business climate impact patient outcomes and decision-making?

Ford: That’s the million-dollar question, Courtney. I’ve gotta hand it to the healthcare industry – we’re resilient. We weathered the pandemic storm and, for the most part, maintained quality despite the immense pressure. However, I’m starting to see some concerning quality declines recently, which I attribute to workforce exhaustion. These folks have been through the wringer these past few years.

Courtney: That’s a really important point, Ford. It’s not just about the bottom line; it’s about people. What can we do to support our healthcare heroes?

Ford: We absolutely need to prioritize workforce well-being. That means creating supportive work environments, addressing burnout, and ensuring these folks have the resources and compensation they deserve. Happy, healthy healthcare workers translate to better patient care, period.

Navigating the Non-Profit Waters: Sanford Health’s Course

Courtney: Speaking of supporting healthcare workers and communities, how do these challenges and opportunities affect non-profit health systems like Sanford Health differently?

Ford: Non-profits like Sanford have a few aces up their sleeves. First off, their mission-driven approach is a huge draw for today’s purpose-driven workforce. People want to work for organizations aligned with their values. Second, non-profits tend to have a stronger track record when it comes to physician integration compared to some for-profit systems. And finally, that local focus, that commitment to the community – it makes a real difference.

Courtney: You’ve had the chance to meet with Sanford’s leadership team during your visit. What are your impressions of their approach?

Ford: From what I’ve seen, Sanford Health is firing on all cylinders. Their commitment to physician relationships is palpable, and their dedication to rural healthcare is truly commendable. They’re not just talking the talk; they’re walking the walk.

Charting a Path Forward: Takeaways and Optimism

Courtney: Ford, after spending some time here, what’s your main takeaway? Give us the bottom line.

Ford: Honestly, I’m cautiously optimistic. The healthcare industry as a whole is on the road to recovery, and Sanford, in many ways, is ahead of the curve. There’s no denying the workforce challenges, but those are largely regional issues tied to population trends and cost of living, factors impacting everyone, not just Sanford. I have confidence in their leadership and their ability to weather these challenges.

The Horizon of Hope: A Future Brimming with Potential

Courtney: So, looking ahead, what excites you most about the future of healthcare? What fills you with hope?

Ford: We’re on the cusp of some truly groundbreaking advancements, particularly in areas like obesity and Alzheimer’s – two major health challenges with massive societal implications. The science is moving so fast; it’s incredibly exciting.

Courtney: That is exciting! But these new treatments, they often come with a hefty price tag, right? How do we balance innovation with affordability?

Ford: That’s the million-dollar question, Courtney, and there’s no easy answer. We can’t let cost be a barrier to progress. We need to be smart, we need to be strategic, but we can’t shy away from embracing innovation. The potential benefits, both for individuals and for society as a whole, are simply too great to ignore.

Fair Winds and Following Seas

Courtney: Ford, thank you so much for your time, your insights, and, frankly, your dose of optimism. It’s been a pleasure picking your brain.

Ford: The pleasure was all mine, Courtney. Thanks for having me.

Alan: A huge thank you to Ford Koles for joining us today and sharing his valuable perspective on the ever-evolving world of healthcare economics. If you enjoyed this deep dive into the forces shaping the future of healthcare, be sure to check out other episodes of Reimagining Rural Health, where we explore a wide range of topics impacting rural communities. You can find us on your favorite podcast platform. Thanks for listening!