Identifying Alternative Revenue Streams for a Leading Health System
The Client
Leading Health System
165,000 Employees
2,600 Sites of Care
$22.6 Billion in Revenue
The Challenge
The healthcare industry is in a constant state of transformation. Rising costs, increased uncompensated care, and changes to Medicaid reimbursement programs are increasing the financial pressure on hospitals and health systems. To survive the rapidly shifting marketplace, health systems need to find innovative ways to improve their financial position. Faced with eroding operating margins, primarily due to increases in charity care and a reduction in admissions and emergency department visits, our client, a leading non-profit health system in the U.S. was looking to find alternative revenue streams to address its shrinking margins.
The Response
Maryville Consulting Group provided direction and expertise to formalize a commercialization strategy led by the health system’s services groups. We drove efforts to productize various internal services and products through a process of defining the vision, locking down a strategy, and identifying value differentiation with internal and external stakeholders. We focused on solution definition, pricing, sales collateral, execution strategies, partner opportunities, go-to-market strategies, and contractual templates. We also assisted with the sourcing and placement of key leadership roles, including a new CEO.
The Process
Market Analysis and Positioning
Research and identified target markets
Product Packaging
Research and identified target markets
Marketing and Promotions
Research and identified target markets
Execution and Delivery
Research and identified target markets
Iterate and Grow
Research and identified target markets
The Value
Over the next five years the combination of services and products are expected to generate significant revenue and support their mission to continue providing healthcare services and improve the lives of those in need. Additionally, the commercialization:
- Creates a new, steady revenue stream to sustain profitability in the ever-changing healthcare environment
- Accelerates focus on streamlining IT processes and reducing costs
- Provides an opportunity to improve internal IT operations through constant innovation in external services