Medical record interoperability

Client was a leader in electronic medical record indexing, working with major hospital systems to ensure continuity of care. With the implementation of new interoperability rules, it was imperative for the company to develop strategic growth options in adjacent markets. Client required consulting support to provide expertise outside of the hospital segment.

Background

• Client had achieved outstanding growth in its core business since receiving investment from private equity sponsor 18 months earlier

• Sponsor and company were concerned about whether growth was sustainable, because interoperability would likely reduce the need for Client’s offering

• Client had strong operations, technology, management, and relationships that were potentially transferable to other customer segments and solutions

Client request

• Determine how new interoperability initiatives would impact Client’s business

• Research and recommend opportunities for Client to leverage capabilities and relationships to grow in adjacent areas

• Collaborate with investment banker to evaluate acquisitions to bolster growth strategy

Key issues for consulting team to address

• What was the potential of established and newly introduced products and services for existing and new hospital system customers?

• Would drive for interoperability erode demand? How much? How quickly?

• What were the needs of payers and life sciences companies and could Client serve them?

• What was the potential to leverage data that Client generated or processed for customers?

• What companies should be on Client’s radar and vice versa as competitors, partners, acquisition targets or acquirers?

Health Business Group approach

• Health Business Group worked closely with a management team that had little prior experience outside the hospital space to define key questions and outline the workplan

• Performed internal company assessment in conjunction with management team to outline capabilities and gaps, and to analyze the product development roadmap

• Conducted secondary data gathering, leveraging HBG knowledge base and market reports for

  • Market size, segmentation and growth

  • Identification and profiling of competitors and potential partners

  • Trend assessment, such as impact of COVID-19, impact of interoperability policy changes

• Conducted more than 50 interviews to obtain greater specificity on topics explored in the secondary data gathering

  • Exploratory discussions with existing customers and partners to test potential offerings and validate assumptions

  • Interviews with executives from prospective customers within health plans and life sciences companies

  • Interviews with market participants, including existing and prospective partners and competitors

• Synthesized findings

  • Created a fact base to enable team to efficiently consider a well-organized set of data and insights about the opportunities

  • Incorporated findings from collaboration with investment banker

  • Conducted workshops to discuss findings and implications

• Developed and evaluated strategic options

  • Developed multiple, distinct options and provided supporting data on their pros and cons

  • Developed criteria, scored each option, gained consensus

  • Refined options and made recommendations

  • Outlined high-level implementation plan

Outcomes

• Developed a framework and input tools to measure and monitor impact of interoperability, while providing assurance that downside was limited in the medium term

• Helped position company as an interoperability solutions provider, turning a vulnerability into a strength

• Identified attractive, unexpected opportunity in adjacent market that was synergistic with core offering

• Guided M&A approach to ensure acquisitions were a strategic fit