At this year’s AHIP Institute & Expo, PA's healthcare team led a session on “Business Transformation: Creating a competitive advantage in the market”.
This session highlighted our client’s recent journey to transform its business, restructure its operations to be competitive in the market, and reinvent traditional business functions into strategic business assets. Attendees learned about the results of a transformational initiative a large payer recently completed which identified operating model changes resulting in substantial year over year cost savings.
The speakers also reviewed lessons learned that other organizations can use to apply to their organization’s transformational initiatives.
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Reducing administrative costs in healthcare is vital to enabling payers and providers to meet growing cost pressures in the sector. Embarking on a cost transformation initiative has huge potential to deliver significant cost savings.
However, realizing sustained savings takes more than a pure focus on reducing costs. It requires the ability to think strategically to maximize future advantage, an understanding of the unique forces at work in healthcare, and an appreciation of the impact of cost and market pressures inside and outside the organization.
Whether we’re focused on delivering short-term cost savings or targeting longer-term strategic goals, we work with you as a partner. We share our skills and help build your ability to develop and sustain a competitive cost position.
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Smart analytics is key to capture growth in Medicare Advantage
Medicare Advantage (MA) plans are embracing analytics to sustain growth in a turbulent environment. Changes in reimbursement, increased competition, aging population and fast-rising medical costs make MA a challenging segment, but also one with significant opportunity for growth. We apply decades of simulation modeling experience to help MA plans understand potential future scenarios, test growth strategies and make marketing and sales decisions based on science and data.
Our solution takes the guesswork out of strategic decisions such as geographic expansion, network design, segment targeting and allocation of marketing resources.
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Companies are spending more than $2 trillion on acquisitions every year but studies regularly put the failure rate of mergers and acquisitions somewhere between 70% and 90%. Integrating two companies under one corporate mission is significant in itself, but different organizational cultures and large groups of people with their own ambitions, personalities and ways of working, make the task an even more complex undertaking. It is no surprise therefore that many fail to recover their full deal costs.
The procurement function can bring significant value and savings to a merger. A well-planned merger of two organizations that draws on analytical expertise and data, is anchored in a clear strategy; has invested in resources and change management expertise and involves its people along the journey will provide significant savings and yield enhanced capabilities and future opportunities.
With PA’s specialist capability in procurement, deep expertise in healthcare, and world-class business design and integration know-how. With this fusion of skills, insight and experience, we can deliver the full promise of procurement integration for your business.
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Healthcare delivery and payment as we know them are dead.
Healthcare delivery and payment as we know them are dead. Five disruptive forces – economic, regulatory, digital, socio demographic and consumer behavior – are causing rapid and widespread disruption that will fundamentally change the industry.
We examine how the industry is transforming and outline four key recommendations organizations should consider if they want to survive in this disruptive environment.
Our report provides a number of vital actions for healthcare leaders it covers:
- How to apply the four foundations for success
- Best practice examples from thriving healthcare organizations that are successfully challenging convention.
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Traditionally, the U.S. healthcare payer industry has lagged other industries in transformation and innovation. According to the findings of PA Consulting Group’s global innovation report, the Healthcare industry issues with innovation comes down to internal, structural resistance to change. The survey states the main barrier to innovation is embedding change and improvement in a sustained way (29%), followed closely by too many rules and restrictions (28%) within the organization.
Competing priorities and risk aversion have driven the industry to adopt a “just in time” approach to transformation. Payers that have high administrative costs are under pressure to radically cut overall operating costs. To achieve this, a new wave of “next generation” outsourcing and vendor contracting is needed, requiring a change in strategic procurement capabilities.
With the start of what many expect to be a fairly substantial round of consolidations, mergers and acquisitions in the sector, the need for a detailed and strategic understanding of how you procure, manage, measure and drive increased value from vendors and business partners has never been more pressing.
So what are the key factors that drive strategic procurement organization success?
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To speak to one of our healthcare experts about the challenges facing your organization, please contact us now.