Tag: Sustainability

Sustainable business model development for multi-stakeholder organizations

December 1st, 2017 by

Health Business Group has provided technical assistance in sustainable business model development and strategic planning under the auspices of a major philanthropic foundation. Since 2009 we have worked with grantee organizations in California, Maine, Massachusetts, Michigan, Minnesota, New Mexico, Ohio, Pennsylvania, Tennessee, Washington, and Wisconsin.

We employ a six-step approach, which we customize based on the needs of individual alliances:

  • Characterize stakeholders –by conducting in-person interviews with 20-50 current and potential stakeholders to understand their motivation for participating in the alliance, determine how the alliance fits into their overall objectives, generate suggestions for areas of focus, and to obtain initial buy-in to support sustainability
  • Develop value proposition –by determining the value that each stakeholder group assigns to each current and potential activity, using best practice findings from the Health Business Group knowledge base, and developing a map of value creation potential by stakeholder
  • Determine scope –by identifying the key dimensions for strategic decision making, specifying the discrete choices that can be made on each dimension, documenting the advantages and disadvantages inherent in each choice, and deciding which choices to make. The deliverable is a one-page summary of strategic alternatives with more detailed rationale pages for each choice
  • Define the business model –by specifying the service offerings to be delivered, defining ways those offerings could be paid for, and identifying who is likely to pay and how much. The deliverable is a simple business model schematic
  • Identity risks –by probing for potential weaknesses in the business model and considering the macroeconomic and political context. The deliverable for this step is a risk assessment and mitigation plan
  • Prepare transition plan. Most alliances can expect to continue to receive funding from the foundation for three or four years beyond our engagement. This provides the opportunity to develop a transition plan, which includes identifying gaps between the future sustainable state and the current state, developing a plan to close key gaps, outlining a process for monitoring and making course corrections

Sustainability plan for statewide e-health collaborative

December 1st, 2017 by

A statewide electronic healthcare collaborative was nearing the end of its pilot funding from a large payer. The collaborative needed support in developing a broader funding plan in order to achieve its full statewide objectives. The collaborative brought together the state’s main healthcare stakeholders to overcome the barriers to electronic health record (EHR) adoption. The initial pilots were considered widely successful and provided lessons learned that would inform the planning for statewide rollout. The goal was to reach 90 percent EHR adoption by physicians in six or seven years, up from the 15 to 20 present EHR penetration estimated at the outset of the work.Over 145 regional healthcare information organizations had developed over the prior several years. Many had failed, most commonly due to the lack of a compelling, sustainable business model.

Health Business Group developed a capital funding plan to enable statewide roll out of EHRs in physician offices as well as a health information exchange to connect electronic health data together across providers. The plan identified the resources required and alternative funding formulas based upon the pilot experience, projections, and other analogous benchmarks. Various options were developed and evaluated across several criteria including simplicity, equity, and alignment of incentives shared by all stakeholders.

As a result of our success in uniting the key constituencies around a statewide rollout plan, the state legislature approved a multi-year initiative to provide tens of millions of dollars in funding for statewide EHR rollout.

Around the same time, the federal government launched its Meaningful Use initiative to support EHR rollout. The client was well positioned and obtained substantial federal funding to expand its work. The client developed a strong reputation that it leveraged with the creation of a for-profit professional services group, which was developed with assistance from a Health Business Group team