You Should Know...
Late to the Party?
The gold rush has really begun in earnest.
Bloomberg and Forbes both recently documented the explosion of existing Medicare Advantage Organizations (MCOs) ramping up recruitment efforts as well as new players entering the field.
With commercial product margins capped and an enormous amount of venture capital money sloshing around looking for a return, Medicare Advantage is the one bright spot in an otherwise rotting industry.
We’ve been documenting the trend here for a while, but only as the most recent proposal period has matured has the true scope of the expansion become apparent.
UHC predicts as many as 50% of seniors will sign up be enrolled in Medicare Advantage.
Capital and labor intensive, with a 3-5 year lead time to profitability, these MAO initiatives represent a big bet—-with odds increasingly stacked against success.
Regulatory push-back, the increasing costs and complexity of an aging population and the exponentiating technology requirements are only a few reasons to be cautious.
An unmotivated, disengaged workforce is another.
I’m going to save you hundreds of millions of dollars—-right now.
What worked in the past with Medicare Advantage will not work in the future.
If you try to start or expand a system with the same premium stripping tactics that are currently being used, you’re going to lose your shirt.
In five years—-after spending Lord knows how much money—-almost all these MAOs will be consolidating and deemphasizing their Medicare Advantage lines of service.
Except the ones who actually control their costs by innovating care delivery now.
They’ll have seized the opportunity of a lifetime.
And they'll have the best cared-for patients as well.