As the market and now regulators begin to coalesce on the demand for sustainable strategies, business models, operations and investments across Environmental, Social and Governance (ESG) and sustainability criteria, the healthcare sector has a pivotal opportunity to unlock value. This can be done by balancing financing strategies and processes with social and environmental metrics in ways that meaningfully improve health outcomes and performance.
Healthcare organizations – both payors and providers – need to make sure that more is being done to drive momentum in this area. People are at the core of both health systems and providers, and stakeholders – whether employees, patients, investors/bond holders, regulators or otherwise – are looking to see how you will turn ESG aspirations into reality.
Take time to have conversations and create systems so stakeholders truly understand what is being tracked, monitored and reported. These issues should be contemplated as part of enterprise management and as business strategies – with the precise internal processes and reporting to reflect that. You might even consider assuring ESG data, embarking on a formal review process in line with stakeholders including regulators and investors/bond holders’ asks.