Tag: Business Strategy

Business Plan For Seed Stage Telemedicine Company

December 1st, 2017 by

Two leading Silicon Valley venture capital funds were incubating a seed stage telemedicine company that proposed to leverage nurse practitioners as an alternative for certain primary care conditions. The investors sought out Health Business Group to assist in understanding the market landscape and segmenting prospective customers. We were compensated with a combination of cash and equity in the new venture.

We worked closely with the entrepreneurs and investors to:

  • Identify, profile, and estimate the size of target customer segments
  • Identify distribution partners and models, then evaluate the implications of channel partner choices by target customer segment
  • Lay out alternative pricing structures, estimate target fee ranges and variations by service type
  • Identify services, functionality and workflow components of interest to target customer segments
  • Identify criteria for conditions that could be diagnosed and treated
  • Predict the timing and rate of uptake for the offering

We developed a set of personas corresponding to the customer segments and used these to help the entrepreneurs tell the story of the market opportunity. Our work formed a key part of the business plan that was pitched to prospective Series A investors.

Ultimately the company determined that regulatory barriers were too high to proceed and the venture was dissolved.

Enterprise Pricing Strategy For Health It Vendor

December 1st, 2017 by

A health information technology company had achieved strong market penetration with hospitals, health systems and individual healthcare professionals. However, advances in technology and computer networks, consolidation of the provider market, and the company’s lack of a comprehensive pricing strategy had created challenges. The client realized that it was time to develop a more rational approach to the market and turned to Health Business Group to assist.
healthcare
We developed a robust customer segmentation model based on extensive quantitative analysis of customer usage patterns, created a cross-segment pricing formula based on value realization, supported development of a plan to communicate the new approach to customers, and devised a migration path to smooth the transition for customers.

The client rolled out the model with its salesforce over a two-year period and achieved real-world success. In addition, the customer segmentation model has been used as a guide for product development, which was an unexpected but welcome byproduct of the original work.

Strategic plan for academic research institution

December 1st, 2017 by

A biomedical research institute within a large clinical organization had encountered difficulties in developing and communicating a strategic plan. An initial plan had been developed internally, but key members of the parent organization’s board and senior management were skeptical of the value of research and were concerned about the costs of the institute and of the proposed strategy.

Health Business Group supported a strategic planning committee comprising parent organization board members, researchers, senior management and outside experts in the development and selection of strategic options and the creation of a model to project the financial implications of the different choices. We prepared for committee meetings by researching the funding environment (including NIH priorities and the emergence of new federal sources as part of the Affordable Care Act), benchmarking comparable organizations, and preparing discussion materials that could be comprehended well by a committee with very diverse backgrounds and outlooks. Initial interactions of the committee members were sometimes awkward and uncomfortable, but over time we were able to facilitate a common understanding of the strategic situation and to produce a robust plan.

The final product was a strategic plan and financial model that were strongly endorsed by institute researchers, senior management, and the board of the parent organization.

Growth strategy for wound care management services organization

December 1st, 2017 by

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.

Mobile strategy for clinical decision support company

December 1st, 2017 by

A leading provider of physician clinical decision support tools asked Health Business Group to assist in developing a business case for a platform for professional mobile medical apps. The mobile app market had undergone rapid growth and transformation over the past several years and all indications were that this space would continue to be highly dynamic. We structured our work to focus on three areas:

Competitive environment to understand how the overall app market was evolving, how the medical apps segment fit into the overall market, and how competitors were approaching the space.

Customer demand to understand current mobile hardware and apps usage by customers, considerations for pricing models, and expectations for future spending
Internal capabilities to assess the client’s ability in addressing the mobile app market (e.g., app development, curation, hosting, marketing, support), to identify gaps and to develop strategies to fill those gaps

We built a fact base by conducting extensive primary and secondary research including interviews with established and emerging players, electronic surveys of customers, and review of market research and analyst reports. With the fact base in place we collaborated with the client team to develop and evaluate strategic options and made introductions to several potential business development partners and acquisition targets.

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