Non-traditional healthcare entities are developing new approaches to generate value for consumers and funders of healthcare by offering low-cost, convenient care options. While these approaches are experiencing meaningful uptake, it is likely to come at health systems’ expense.

These new entrants are posing a considerable threat to health systems as they design targeted healthcare solutions for specific segments without the encumbrances that many nonprofit healthcare entities face.

Health systems now must determine how best to create value from the networks they’ve created in both traditional ways (through alignment with health plans) as well as novel approaches of utilizing the network to extend the health system’s reach into new markets alone or in partnership with others.

This piece identifies activities and strategies for health systems to pivot their care delivery business model and create value that meets the purchasers’ and consumers’ evolving needs.

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