Hello, Dr. Keith Smith with you on behalf of the Surgery Center of Oklahoma, thank you for joining me.
We’ve discussed the two types of buyers of health care, now let’s discuss the two types of sellers. The first we’ll cover is unfortunately the most prevalent; the seller who is trying to maximize revenue. They’re trying to get every single dollar they can. They’re trying to make as much money as they possibly can. There are various ways they do this.
Typically, these are big hospital systems that would buy out competitors, buy physician practices and then hold them accountable to the extent that they make sure that all referrals stay “in the family” and that a large number of tests are ordered for each one of which a large charge can be generated.
The other type of seller, and the one that is fortunately becoming more commonplace, is the one who is trying to maximize the delivery of value. The Surgery Center of Oklahoma and many others I think can be characterized as maximal deliverers of value. The self-funded community, such as the companies that pay for health care out of operational revenue in the United States, have sought out deliverers of value like my facility and others that have copied us.
In many ways the Surgery Center of Oklahoma, and other facilities like mine, act as co-fiduciaries of the self-funded plans. After all, if value is not delivered, they would very quickly lose interest in doing business with us and go back to the old ways.
We are very excited to be a part of the group that delivers maximum value, we’re very excited to see our numbers growing and to see that the price-gougers trying to maximize revenue are being painted exactly for who they are.
Thank you for joining me, we’ll see you next time.