Case Study: Unified Vision: Transforming Healthcare Delivery Across America
The Challenge:
A leading medical service provider in the United States faced significant operational challenges following rapid expansion. Within three years, the company grew from 150 locations in California to over 600 across 23 states. This growth led to disparate systems, inconsistent reporting, and a lack of standardized organizational design and work processes. A critical issue emerged in accounts receivable, primarily due to the lack of clarity on insurance coverage, resulting in unexpected bills for patients. The company required a comprehensive overhaul of its Targeted Operating Model and a realignment of its organizational culture and priorities.
Approach:
Our approach began with aligning the company’s aspirations with its operational capabilities, focusing on providing accessible health care. A thorough assessment revealed the need for a new targeted operating model, leading to the development of a multifaceted strategy encompassing ten key workstreams:
Transformation / Change Management Office: Established to structure and prioritize organizational changes, supported by a robust change management and communication plan.
Intentional Culture: Formulated behavior-based cultural expectations to foster a cohesive work environment.
Organizational Design: Created a standardized structure for implementation across all districts and offices.
Organizational Alignment: Ensured alignment of management at all levels with their respective roles, goals, and objectives.
Leadership Development: Focused on enhancing the skills of frontline and mid-level leaders.
Process Optimization: Streamlined processes across the value chain to minimize human error.
Systems of Work: Developed standardized practices, KPIs, and an effective management system with aligned behaviors.
Digital Adoption: Unified all locations under a single digital system.
Capability Development: Built a comprehensive employee lifecycle and training program, including onboarding, performance appraisals, and compensation reviews.
Quick Wins: Implemented strategies to improve case acceptance and reduce bad debt.
This strategy culminated in a five-stage, 24-month transformation plan:
Stage One: Focus on quick wins, cultural intentionality, organizational design, alignment, and process design.
Stage Two: Regional rollout to ‘A’ offices.
Stage Three: Expansion to ‘B’ offices.
Stage Four: Further rollout to ‘C’ offices.
Stage Five: Implementation of a sustainment plan with continuous adjustments.
Impact:
The targeted operating model and its strategic implementation yielded significant benefits:
Case Acceptance: Halved bad debt and increased insurance claim approvals.
Profitability: Enhanced company profitability by 25%.
Reporting: Improved and standardized reporting processes led to a boost in sales.
Revenue: Improved sales and revenue by 15%
Customer Satisfaction: Net Promoter Score increased by 24%
Employee Retention: Attrition rates dropped by 15% over the two year
In conclusion, the strategic transformation undertaken by the healthcare provider not only streamlined operations and reduced financial inefficiencies but also reinforced the company’s commitment to accessible care. The successful implementation of the new operating model and cultural realignment has set a new industry standard, demonstrating that thoughtful leadership and a clear vision can lead to substantial improvements in both patient experience and business performance. This case study serves as a testament to the power of unified efforts in achieving exceptional outcomes in the dynamic landscape of healthcare.
“We were in trouble. Cashflow issues and our investors needed results. We are now a stronger and aligned organization. There is one way we do things, not five.”
CEO
