When corporations make major decisions, the ramifications aren’t always readily apparent. Beyond the obvious, what happens “down steam” can be as significant.
Take what’s happening in health care in Pennsylvania. Healthcare consumers seem to be the
stakeholder with the most, well, at stake. But what about the broader market? The business climate? A region’s ability to attract and retain talent and business?
Much of the healthcare industry has had its eyes on Pittsburgh for approximately two years. Highmark, the dominant healthcare insurer in Western Pennsylvania with $14.78 billion in total revenue in 2011 and 3.1 million total customers in that region, is in the process of buying West Penn Allegheny Health System. It is the highest profile example in the United States right now of an increasing trend in health care – insurers purchasing physician groups, hospitals or, in this case, an entire health system.
The key messages in the press releases that Highmark has issued along the way toward purchasing WPAHS, include:
- The “integrated delivery system” (IDS) is a way to preserve competition among healthcare providers and maintain choice for consumers.
- The IDS will provide convenient, more modernized and more affordable, high-quality care.
Noble ambitions, indeed. And necessary. The University of Pittsburgh Medical Center, whose operating revenue was $9 billion in 2011, is a behemoth in the region that employees more than 50,000 people. Its web site lists 15 hospitals in its system, among dozens of other facilities. Consumers should have a choice, and Highmark represents the region’s best chance at it.
But the key messages don’t equal transparency. As Highmark waits for the Pennsylvania Insurance Department to approve the deal, there may – may – be some restrictions on what it can say to the public. But there’s a way to communicate even under constraints.
Is the care really going to be more affordable? How do we know? What does “high-quality care” really mean? It takes more than a simple billboard to answer such questions.
What will happen to patients’ longstanding relationships with their doctors? What do doctors really think the future holds in Western Pennsylvania for health care? These are the obvious questions and have hung in the air for many months. The peak angst the consumer marketplace felt has subsided, or at least quieted, but what about other ramifications of the opacity?
A few weeks ago I attended a healthcare briefing in Pittsburgh where business and healthcare leaders came together to discuss the less visible though equally important ramifications. In fact, what happens with healthcare in Western Pennsylvania is so significant that the Allegheny Conference on Community Development, an organization that is focused on stimulating economic growth in the region, convened a healthcare competitiveness committee and a healthcare advisory committee.
Employers’ ability to attract and retain talented employees is being affected by what some outsiders view as a costly healthcare environment. Site selection consultants believe the healthcare situation in Western Pennsylvania is negatively affecting the region’s ability to attract new business. Regional employers are considering whether expanding here is a smart decision.
It’s evident there’s plenty of anxiety to go around, not just among the most obvious stakeholder groups.
Though I surely don’t see everything, I’ve not seen much meaningful communication about this momentous issue from the players involved. And that’s a big missed opportunity for them all to allay fears and deepen their relationships with and endear themselves to their stakeholders.
How could these organizations better communicate? What more could or should they say?
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Jason Snyder is a senior vice president for WordWrite Communications.
