Hospital Strategic Services
Case Study: Ambulatory Growth Strategies
Challenge
St. Vincent Hospital was facing declining market share, particularly from suburbanites who did not wish to travel to downtown Cleveland. In evaluating alternative geographic areas of focus, management was unclear on which geographic areas to focus. A location needed to be selected from among the alternatives, and then a business plan developed to direct the development of outpatient services in that location.
Solution
A comprehensive evaluation was completed of the alternative suburban markets. The evaluation included completion of focus groups, review of population and demographic data, and review of data concerning where patients from each area sought health care. After a general location was selected, a comprehensive evaluation was completed including evaluation of the demand for individual outpatient services, the competition, and physician practices with the market. In addition, a factor analysis was completed to rate potential sites based on criteria agreed to by the client.
Result
One result was that the organization avoided the serious mistake of investing in the wrong market. More importantly, the management team had a comprehensive understanding of the potential opportunities in the selected market, as well as the potential risks.
