Integrated delivery systems: Improving health care quality and reducing costs.(ADVICE)

SERVICE PROVIDERS IN the health care industry are constantly looking for ways to improve productivity, profitability and customer satisfaction in order to maintain a competitive advantage. Many 4 health care facilities have a desire to improve quality while reducing costs, creating positive patient relations, and making positive contributions to the community. With the help of an Integrated Delivery System (IDS) these objectives can be attainable.

Integrated Delivery Systems are formed when hospitals, physicians, nursing homes and other medical entities join together to provide the best possible combination of services to the consumer. This combination of providers can share vital information with one another, such as a patient's medical records, to provide the highest quality service for the lowest possible price. Coordinating information reduces administrative tasks, saving rime and lessening the amount of paperwork.

The integration also brings a new level of power to the entity. The increased size gives the unit greater bargaining power and increased clout in the marketplace. As demands from each individual group become coordinated, the system itself becomes more efficient and productive.

However, Integrated Delivery Systems are not the best path for every health care provider to take. When deciding if an IDS is right for a given organization, if is important to invest in due diligence, to determine if the work and transition process will be successful. It is also important to determine if the various incentives of the organizations are aligned and governance of the system should be set in advance. If it is found that the transition to an IDS will be the most practical solution, then it is important that all employees are on board and willing to make the transition to ensure success.

As companies make the transition they can choose between a variety of Integrated Delivery Systems, bringing about as much or as little integration as desired. The optimum level of integration is unique to each individual entity and must be decided upon after the appropriate options have been thoroughly deliberated.

Some health care providers are finding that involvement in an IDS is the most efficient and cost-saving way to provide the service demanded in today's health care market. As the load placed on health care providers constantly increases, the consolidation of the health care industry will continue to move toward a more integrated system.

David Charles, CPA, is a partner at Katz, Sapper & Miller in Indianapolis. He chairs the firm's Healthcare Resources Group.

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