The company had developed a robust business managing advanced wound care services in the hospital setting and was seeking to accelerate its growth by opening freestanding hyperbaric oxygen (HBO) centers for wound care and other indications.
Health Business Group team performed a systematic review of the evidence base for each non-wound care indication for HBO, characterized patient demographics and market size by indication, and mapped out the reimbursement environment by geography and indication. Primary sources included interviews with competitors, equipment suppliers, trade associations, health plans, financial analysts and medical researchers. We also utilized independent evidence based clinical review publications and health plan policies to map out the scientific evidence by indication.
We developed a report card for each indication, presented an assessment of the market dynamics, and mapped out alterative market entry strategies including acquisition and greenfield development. Senior management and the board ultimately concluded that it was more promising to continue investing in the core business than to diversify into the freestanding market.