Relationship capital

A renewed focus on profitable organic growth

Hospitals and health systems have a renewed focus on profitable organic growth. After decades spent developing physical assets, implementing systems, and making acquisitions, executives are asking how they can best get a return on these capital outlays. Further, as experienced in other industries, healthcare is being disrupted by rising consumer expectations and new technologies.

Ultimately, organizations that can offer high quality care, information and support to patients where and when they need it, will be best positioned for success. It's a transformation journey that is complex and can span multiple years. While the path forward has to be unique to an organization - there are some rules that are relatively consistent.

While no two systems are ever quite alike, we suggest three basic strategic imperatives for health systems looking to develop a strategy in our paper: 

1. Growth:  all growth is not good. Investments have to be focused and informed by an understanding of what drives quality and profitability 
2. Loyalty:  healthcare organizations need to think more like loyalty businesses. In other words, focus less on the value of a given episode or transaction, and more on the life-time value of a patient.
3. Operating model: healthcare systems need to adapt their operating model to support their physicians. The great majority of systems have significant hidden potential.

It really is about building Relationship Capital. The organizations that are leading the way in the race towards greater consumer centricity are laser focused on meeting the needs of their patients and physicians.