Birmingham, a statewide hub for specialty care, has historically been a slow-moving market from the perspective of value-based contracting. BCBS of Alabama is the power player and key driver of quality in the market and offers multiple programs aimed at improving clinical outcomes and enhancing provider accountability and efficiency. There are few ACOs operating in the market, and all of them are Medicare ACOs. COVID-19 is driving new trends in Birmingham, just as it has in most of the country. There is increased probability that rural hospitals will close without the financial cushion to absorb the COVID-19 crisis, and Bibb County Medical Center is an example of a vulnerable rural hospital in this market. Telemedicine has become more prevalent during the pandemic, and increased demand for telemedicine services is expected to negatively impact volume for urgent-care clinics. UAB’s new alliance with Ascension will give the integrated delivery network increased purchasing power, making it more difficult for competing systems to advance their networks within the market, which UAB already dominates.

Related Reports

Richmond | Virginia | 2020 | Market Overview (Event Driven)

Richmond’s large health systems continue to drive the healthcare industry in the market, particularly Bon Secours Mercy Health and VCU Health System. The two integrated delivery networks have...

View Details

Omaha | Nebraska | 2020 | Market Overview Brief

The COVID-19 pandemic continues to disrupt all healthcare sectors in Omaha. Patient volume has plummeted as health systems and physician groups postpone revenue-generating elective and nonurgent...

View Details

Phoenix | Arizona | 2020 | Market Overview Brief

The fast-growing Phoenix market is experiencing a seismic shift in healthcare delivery with value-based contracts, service expansion, consolidation, and integration as the primary trends. The creat...

View Details

Wilmington | Delaware | 2020 | Market Overview Brief

Wedged between other large markets, Wilmington is both heavy consolidated but also relatively advanced compared to many markets of similar size. The market is beginning to make strides on value-bas...

View Details