The medical industry is growing, yet, experiencing significant change. For decades upon decades the medical industry provided direct care. Overall, it was a rather simple and literally a “direct” association between doctors/facilities and patients.
However, especially with the existence of Obamacare, the entire service delivery model has been turned upside down and is forced to transition into what has been coined “Managed Care.”
Managed Care sure sounds good, but does it work?
Well, that is a HUGE debate within itself. But realistically, it doesn’t matter. The industry has changed and transportation providers must adapt to such change.
For the last several years since Obamacare became the law of the land hospitals, doctor offices, and associated health care facilities have been working to adapt. Needless to say, their changes directly affect transportation providers and all other support services. So with the demand for transportation services increasing so too goes the demand for transportation providers to change and adapt.
The movement toward Managed Care has changed the way hospitals and medical facilities offer care and the way patients, providers, HMO’s, MCO’s, ACO’s, brokers, and support services interface with each other.
Understand, the dog will always wag the tail – not the other way around. Managed Care is here and the medical industry is the dog. Providers and supporting services are the tail. Therefore, as a supporting service you need to recognize that you must “follow the dog” if you wish to succeed. Adapt, adjust, and modify is essential.
The good news is that, in following the dog, you can actually make more money than was previously possible in the medical transportation industry. Managed Care is bringing more networking and contracting opportunities
Unfortunately, those providers whose businesses are dying a slow death are often because previous opportunities have receded and they have no comprehension of how to leverage Managed Care.
Let’s be clear. Entrepreneurs are in business to make money, create wealth, and exponentially improve their financial position. If they are failing to achieve all three of these key objectives then they are essentially working a job while incurring greater risk and liability – bottom line.
If you want to ensure competitiveness and make “real” money in the medical transportation industry then you must (1) learn the changes to the Managed Care landscape, (2) modify and adjust your business model, (3) diversify and expand your target market, (4) position yourself to take advantage of the growing contractual opportunities, and (5) properly scale your business so that you remain profitable and flexible – able to adjust and respond to change.
All across the country Managed Care is providing an increase in contractual opportunities with consolidating facilities and organizations. These contractual opportunities are affording providers the opportunity to expand and travel outside their “traditional” and regionally-based areas.
Many providers are missing the vertical growth and diversification that is staring them right in the face through new and emerging contractual opportunities.
Managed Care Organizations are changing and restructuring. They are forming new partnerships and associations. They are always looking for credible, reliable, and competitive providers. Why – because they need to save and make money! When you better understand how and why these organizations are changing you can solicit potential agreements – some of which are EXCEPTIONALLY profitable.