The Auto Industry vs. Healthcare
For much of the last century, the auto industry has grown and prospered around the big three; General Motors, Ford, and Fiat/Chrysler. It’s a formula that’s worked effectively in Germany (Volkswagen, Mercedes-Benz, and BMW), and Japan (Toyota, Nissan, and Honda) and other countries as well. In each geographic area, the companies work independently but benefit from an established supply chain, distribution network, skilled and educated labor pool, and standardization of manufacturing and organizational processes. The economic benefits are readily apparent.
The healthcare industry doesn’t have a “big three,” resulting in thousands of multi-billion dollar independent organizations.
Going it Alone
There is no centralization in healthcare and no national market leaders to help set standards. Hospitals and health systems are geographically constrained, operating multi-billion-dollar businesses by serving a customer (patient) base located within a 150-mile radius of its primary facility.
- Individual rights, responsibilities, and customer (patient) expectations are not well aligned with either financial or delivery/production realities.
- Providers are geographically constrained.
- The ability to attract higher level talent is restricted, with competition, if any, originating primarily from similar local institutions.
- They have limited control over prices and costs.
- External pressures (i.e. regulation, politics, community concerns) create unique accountability and risk.
Each health system deploys and operates technology independently, resulting in a far less standardized infrastructure, varying financial controls, and a siloed manpower organization. Departments are inherently inefficient and ultimately these costs are passed along to individuals, insurance, and government entities. Further, actual clinical outcomes are negatively affected. The ability to adopt modern, standardized IT elements are hindered, resulting in difficulties in exchanging and using clinical patient data, easing work demand on clinicians, and integrating the clinical and social elements of healthcare.
Taken together, lack of proper technology leadership and accountability, along with the parochial nature of hospitals, has led to a clash between IT demands and IT resources. Generally speaking, IT budgets are growing more slowly than demands on their services. The lack of efficiency and standardization exacerbates the situation. This trend shows no sign of slowing. From more complex imaging and diagnostic tools, to drug development, treatments, data analytics, and the push for government to somehow control costs, the need to do more with less continues to intensify.
GPMF Holdings has been created to service the various needs of healthcare today.
The Ecosystem at a Glance
Through a combination of embedded operations and “standard” consulting services, GPMF companies assist hospitals in creating the IT infrastructure, operational processes, and financial changes that must be embraced to succeed in today’s competitive healthcare industry landscape.