Hospital Strategy Services
Case Study:
Specialty Service Analysis And Opportunity Identification
Challenge
BayCare Health System, based in Clearwater, Florida is a 9-hospital system in Tampa Bay. Increasingly, BayCare was seeing competition growing in the outpatient market. Executive leadership concluded that growth in the inpatient arena, and specifically in the tertiary and quaternary service arenas, was worthy of consideration because there would be less competition for such services. How to evaluate the situation, and identify opportunities, was unclear.
Solution
A new methodology was developed to evaluate the prevalence of various types of tertiary services in the Tampa Bay market place versus other markets of similar size and similar demographics. Analyzing Medicare data at a DRG and MDC level, we evaluated various services based on the prevalence, the potential profitability, and the competitive environment for those services in the Tampa Bay market. The result was identification of three services with low prevalence in the client's market and high potential profitability.
Result
The result was a clearer vision for BayCare of the services in which they should invest, as well as opportunities at the high-end of the inpatient market that could be profitable. This information was used as the system made decisions about how to focus service line growth, allocation of capital resources, and recruitment of specialty physicians.
