Strategic Roadmap for the Development of an Integrated System of Care

HES Advisors was engaged to assist a Midwest based, 500-bed community hospital in the development of a strategic roadmap towards becoming an Integrated Health System. The Integrated Health System was to include ownership and management of a health plan. Two significant questions on the mind of Senior Management and the Board of Trustees concerned how profitability and market share for the Health System could be enhanced and how the current assets of the Health System might be deployed as the Integrated Health System would take on more and more risk for the populations it served.

HES Advisors conducted an environmental assessment to determine the System’s overall market position and key success factors required for operating as an Integrated Health System. Additionally, HES performed a comprehensive gap analysis to determine to what extent the Health System’s current assets would need to be enhanced to operate successfully as an Integrated Health System. Detailed financial proformas were developed to model the impact on the Health System’s profitability and market share.

With this foundation, HES defined the sequential steps necessary to assume financial risk and manage the cost of care and quality for a population. A tactical 5-Point plan was recommended for the hospital to maximize revenue and profitability while gradually expanding risk positions needed to operate as an IHS. Hospital leadership has incorporated the detailed roadmap into its strategic plan to guide its progression towards an Integrated Health System.