The journey to a new tomorrow: A conversation with Ron Kuerbitz, CEO, agilon health
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What is the main topic discussed in this episode?
McKinsey on Healthcare, a podcast series about visionaries, leaders, and problem solvers shaping the future of healthcare. On today's episode, McKinsey partner Neha Patel is joined by Ron Kovetz.
How is consolidation reshaping primary care and why might it be a prerequisite for value-based care?
We'd love to hear a bit about your perspectives on the dynamics in the physician industry. In particular, what are some of the near and long-term implications of ongoing and escalating consolidation of the sector by both hospitals and private equity of primary care physicians?
I think it's hard to assess the effects of the consolidation by itself. One of the positives that goes along with the consolidation is the creation of platforms for better systems. With increasing scale, physicians have access to more capital, more tools, and the opportunity for more collaboration. But the real issue is, what's the goal of the consolidator? If the goal is to use that organization to drive value, the consolidation is pretty close to a prerequisite. We're working on some systems that allow small practices to get the benefits of organization and investment. But by and large, I think the prerequisite for the country as a whole is going to be that some level of consolidation happens.
What benefits and risks do hospitals, private equity, and payers face from physician consolidation?
What impact do you think that will have on various players in the industry?
Players that are forward-thinking are going to see this as a prerequisite, as a benefit. Particularly, we see payers really demanding improvement in value-based care and really starting to drive the integration of some of the payer elements and provider services. Health systems, I think it's a little bit more hit and miss. There are definitely health systems that see this consolidation as a long-term benefit, giving them an organized platform to integrate into the way tertiary care is provided. But I think there are also systems, both health systems and institutional ambulatory services providers, who are resisting the trend and really have doubled down on a fee-for-service environment. For them, I think this is going to be a real challenge because as physicians, particularly primary care physicians, get organized, get access to data, get access to the opportunity to improve protocols, find new areas of efficiency, they're going to require partners at the payer level, among other providers, who will enable them and help them move along that continuum.
Shifting gears a bit, we'd love to hear the view from the physicians. So with all the new sources of administrative work that's required of them, what is a value proposition for them to work with various aggregators in the industry?
The addition of administrative work is probably the biggest challenge in the physician world, at least as we see it, that 63% of family practice physicians exhibit some symptoms of burnout, and more than 50% of general internal medicine physicians feel real significant symptoms of burnout. That burnout largely is a function of a tremendous load of administrative activity that takes away from their ability to focus on the things that they're really expert on and the things they know their patients need. that lack of reward for the skills that you bring to the system, the inability to pursue the mission that you came into medicine for, and then the threat of a lack of independence. Those are the three hallmarks of factors that drive burnout.
As a practical matter, the system can't afford it. We cannot afford to lose more primary care physicians. They are, when well organized, the glue for the whole entire system. I think the rise of administrative work and the lack of the system to create vehicles that reward physician capability, reward physician engagement on their fundamental principles, their mission, and allow them to do that in a way that continues their independence, that's a tremendous threat to the U.S. healthcare system.
And what do you think is the role of technology, such as automation, in improving physician productivity and some of the issues that you raised?
Why are physicians experiencing burnout and what value do aggregators offer to address it?
And what do you think are the key enablers to unlocking this?
Technology has been one of the drivers of administrative work.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:07–0:20
2
How is consolidation reshaping primary care and why might it be a prerequisite for value-based care?
0:20–1:31
3
What benefits and risks do hospitals, private equity, and payers face from physician consolidation?
1:31–4:37
4
Why are physicians experiencing burnout and what value do aggregators offer to address it?
4:37–8:53
5
How can technology and automation reduce administrative burdens for physicians without disrupting workflows?
8:53–11:40
6
Is taking financial risk in care delivery working and what forms of risk drive meaningful change?
11:40–15:33
7
Which administrative functions are becoming commoditized and how can they be decommoditized for higher value?
15:33–17:09
Speakers
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