Imagine trying to manage strategic planning for a health system that has doubled in size in recent years, but lacks standardized business development processes to maximize growth opportunities. Then, imagine an extremely competitive consumer marketplace where two members of that same network are advertising for the same service in the same newspaper with no mention of the health system. That’s exactly the position the strategy team at Hartford Healthcare (HHC) found themselves in four years ago. They knew something needed to done—and done fast—to eliminate the duplication of planning efforts and inefficient use of resources. Rapid-Cycle Business Plan DevelopmentIn 2013, HHC adopted a consistent approach to business plan development, which would allow the health system to quickly assess and act on those opportunities that were deemed most beneficial to patients, communities, and the system at-large. The process includes the ability to “fail fast” and make course corrections in a timely fashion. Steps taken to increase speed to market include:
- HHC created a set of criteria for evaluating every business development idea and proposal across the system. Standardized criteria include community needs assessment, patient access and customer experience, quality metrics, projected service growth, financial impact, return on investment, and capital required.
- HHC also established a multidisciplinary Research & Development (R&D) committee structure. The primary charge of the R&D team is a 90-day “go” or “no go” planning cycle. The R&D Committee—which includes planning, marketing, and analytics professionals—meets weekly to develop and vet business plans for potential new services and technology, capital expenditures over $250,000, projects requiring regulatory re¬view, and the elimination or reduction of services, among others.
What Does Success Look Like?Since implementing rapid-cycle business plan development, HHC has outpaced the market in several growth initiatives. Results include:
- 10 percent growth in primary care visits
- 30 percent growth in outpatient rehabilitation visits
- 4.5 percent growth in ambulatory surgery volume
- 4 percent growth in outpatient revenue, based on percentage of total revenue
Get on the Fast Track!In SHSMD’s Spectrum newsletter, Barbara Durdy, director of strategic planning, and Karen Goyette, vice president of strategic planning and business development, both at HHC, share insights for creating a coordinated approach to health system growth.
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