Challenges We Face

The changes we are making to our organizational structure and operating model are a direct response to the challenges facing health care today. These challenges should be viewed as opportunities we embrace as we position Texas Health for continued success.

	Pressure to Reduce Total Cost of Care We face pressures to reduce the cost of providing care from consumers, employers, commercial insurers and the government. This includes providing the right care at the right place and time. Through our combined efforts, our cost of care has gone down, but cutting our expenses can only take us so far.
	Reimbursements Fall Short Our reimbursement rates aren't keeping up with our expenses. We are no longer seeing two-to-four-percent increases in our reimbursement rates from commercial insurers. Medicare and Medicaid reimbursement is no longer sufficient to cover our costs.
	Health Care Legislation Changes We know that the Affordable Care Act is being reconsidered, and most likely will be changed. We must be ready to respond and adapt to changes enacted by health care legislation.
	Role of Consumer Choice Health care consumers are becoming more involved in choosing their own care and making different choices. This means we must meet them where they are and understand what’s important to them. That doesn't mean they're just looking for the lowest cost. Some are looking for provider relationships, while others value technology solutions, and others choose convenient access above all. They all still want high quality, safe and compassionate care. That's the price of admission.

To achieve our mission during the next 10 years, Texas Health must be innovative and find new sources of revenue while continuing to provide safe, affordable, quality care. That’s why we created Vision 2026, and why we are creating a new decision-making structure, operating model and operating structure to chart the path.