Performance Transformation

We use a holistic, proven approach with unparalleled expertise to support large-scale, structured transformation programs to drive growth, spur innovation, and turn around operational performance of payers, providers, and healthcare-services organizations.

We tailor our transformation approaches to a healthcare organization’s situation and goals, and work with an organization to alter its performance, health, and capabilities completely when the aspiration is a radical step up in performance. In other instances, we apply a unique approach that provides flexibility but still generates significant improvement in execution, capability, and growth.We frequently conduct M&A and strategy transformations in targeted situations.

We have considerable experience in conducting diagnostics across functional areas to understand transformation opportunity at a granular level. We complement our hands-on work with proprietary, rapid diagnostic tools and concepts that tackle a range of healthcare challenges. Further, we use a proven recipe of practices and governance to ensure that the identified opportunities progress from ideas to well-developed implementation plans to support healthcare organizations.

During the implementation phase of a transformation, we engage experts in growth, consumer journeys, digital, corporate finance, supply chain, back-office functions, patient access, and clinical operations alongside dedicated delivery and implementation resources (including interim management, when appropriate) to drive differentiated levels of performance and growth.

When a large not-for-profit health system in the United States was struggling with a budget deficit and physician and patient retention, we helped drive immediate wins across labor, supply-chain, purchased-services, and growth-operations areas, leading to more than $77 million in cost reduction and $15 million in revenue growth over the course of a year.

A metropolitan US hospital system involved in a recent merger was facing financial and cultural challenges, so we helped it launch a clinical-operations-improvement program, identified revenue-driving opportunities, and developed a team to run and monitor turnaround activities. These efforts ultimately exceeded financial targets, growing earnings before interest, taxes, depreciation, and amortization by 25 percent and free cash flow by $100 million.

We worked with a major business unit within a regional health plan that was seeking to improve operating margins and establish a robust process to generate and implement performance-improvement ideas. We partnered to deliver a new operating model that enhanced the business unit’s strategic position, which helped it exceed operating-margin targets by more than 25 percent.

When a large payer with strong historical performance was looking to sustain growth through uncertainty and strengthen organizational health, we focused on building a digital foundation for growth. Our efforts overdelivered on cost-saving and growth targets, identifying 10 to 15 percent in administrative-cost savings.