Healthcare’s Next Evolution: Why ‘Systemness’ Trumps Scale
For years, the healthcare industry chased scale – bigger hospital networks, broader service offerings, and increased integration. But a shift is underway. According to Byron Jobe, President and CEO of Vizient, the future of healthcare hinges on “systemness,” a focus on alignment and coordinated operation rather than sheer size. This isn’t simply a semantic change; it represents a fundamental rethinking of how healthcare organizations function.
From Scale to Systemness: A Necessary Course Correction
The pursuit of scale was a logical response to pressures like regulatory changes, rising costs, and the emergence of modern care models. However, this growth often resulted in complex, sprawling organizations that lacked cohesion. As Jobe points out, airlines don’t lose customers due to the fact that they lack airplanes, but because their systems fail to deliver passengers reliably. Healthcare is facing a similar reckoning. Capacity exists, but access remains a significant challenge.
Systemness isn’t about shrinking organizations; it’s about ensuring they operate as a unified whole. It’s about establishing a common operating approach across all care settings – hospitals, clinics, digital health platforms, and partner organizations – so that the organization moves in a single direction, regardless of where care is delivered.
What Does ‘Systemness’ Actually Seem Like?
The implementation of systemness isn’t a one-size-fits-all approach. Jobe emphasizes that it varies by market. Some organizations may choose tight alignment across all areas, while others might focus on deliberate alignment in only a few critical areas, allowing for continued local operation. The key is agreement on priorities, decision-making processes, and how operate gets done.
Inspira Health, based in Mullica Hill, New Jersey, provides a real-world example. The organization has revamped its leadership structure specifically to drive systemness. According to Warren Moore, CEO and President of Inspira, true systemness means aligning every employee around a clear mission, guiding all strategies and decisions. This allows for faster, more aligned action and consistent delivery of their community-first mission.
The Role of Leadership in Fostering Systemness
Inspira Health’s example highlights the critical role of leadership in cultivating systemness. Moore stated that evolving the leadership model is essential for operating as a single, unified organization with a shared purpose. This requires a shift in mindset, prioritizing collaboration and shared accountability over siloed departmental goals.
Challenges and Opportunities Ahead
The transition to a systemness-focused approach won’t be without its challenges. Breaking down silos, fostering collaboration, and establishing common operating procedures require significant effort and investment. However, the potential benefits – improved patient access, enhanced workforce efficiency, and stronger financial performance – are substantial.
The focus on systemness comes at a time when the healthcare industry is facing significant headwinds, including an aging population and increasing investment in artificial intelligence. These factors are reshaping the economic landscape of healthcare, demanding greater efficiency and adaptability.
FAQ: Understanding Systemness in Healthcare
Q: Is systemness about reducing the size of healthcare organizations?
A: No, systemness is about improving coordination and alignment within existing organizations, regardless of size.
Q: How does systemness differ from integration?
A: Integration often focuses on combining entities. Systemness focuses on how those entities work *together* effectively.
Q: What are the key benefits of adopting a systemness approach?
A: Improved patient access, increased workforce efficiency, and stronger financial performance.
Q: Is systemness applicable to all healthcare organizations?
A: Yes, but the specific implementation will vary depending on the organization’s size, market, and existing structure.
Did you know? Vizient’s 2026 state of the industry report highlights structural pressures and financial risks, suggesting a require for a reset in healthcare operations.
Pro Tip: Start by identifying key areas where alignment is lacking within your organization. Focus on improving communication and collaboration in those areas first.
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