Develop a substantial Op-ed on several thought-leaders' viewpoints pertaining to the future of health care finance. Search credible sources for industry leaders talking about the future of healthcare financial management. Pick 2-3 sources that resonate with you most or, as an alternative, pick conflicting positions.
Now consider everything you learned. What do you think ‘care’ will look like in 10, 20, or 30 years? How financial management considerations will shape/affect the “care” you described. Why? As you review the content and the industry leaders visions, what resonates with you? Given the role that economics and finance play in health care delivery, which of the HFMA or other visions of the future seem most likely to be sustainable to you? Why?
Develop an Op-ed on the topic of “Looking into the Future”. If you are not familiar with how to write an Opinion Editorial, review https://projects.iq.harvard.edu/files/hks-communications-
Sample Answer
Looking into the Future: The Financial Architecture of Care
The future of healthcare is a battleground between financial efficiency and equitable outcomes. The current fee-for-service (FFS) payment model—a relic of the last century—is under siege, financially incentivizing volume over health. A transition is underway, driven by industry leaders, towards models that align payment with patient well-being, though the path is fraught with complex financial and technological hurdles.
The Thought Leaders' Pivot: Value and Technology
The consensus among major healthcare finance groups, such as the Healthcare Financial Management Association (HFMA) in its strategic focus, and reports from firms like PwC and Bain & Company, centers on two major themes: the aggressive shift to Value-Based Care (VBC) and the reliance on Artificial Intelligence (AI) as the core financial enabler.
. The Inevitability of Value-Based Care
Thought leaders view the full transition to VBC—where payments are tied to quality outcomes, patient satisfaction, and efficiency—as a financial imperative. Michael Abrams, a consultant in the space, notes that the broken FFS model promises to "cripple our health care delivery system" unless providers transition to VBC soon, tying payment to outcomes and prudent utilization.
This shift presents a colossal challenge for healthcare finance professionals:
Risk Management: As noted in reports on financing VBC, the transition involves financial uncertainty and risk. Providers must accept downside risk (losing money if outcomes are poor) in exchange for the upside opportunity (shared savings if outcomes are exceptional).
Strategic Capital: Financial institutions are now developing strategic financing tools, like receivables financing for expected shared savings, to provide the necessary liquidity and capital runway for providers to test and scale VBC models. The financial function shifts from transactional billing to strategic underwriting.
2. AI and Data: The Financial Engine
The success of VBC hinges on the ability to track, analyze, and predict outcomes for entire patient populations—a task impossible without robust technology. PwC and U.S. Bank reports indicate that healthcare finance leaders are sharply focused on AI for identifying fraud, managing risk, automating processes, and aggregating customer insights to create "digital front doors."