Strategy & M&A
No matter how effective a health plan is today, it may not have the reach or capabilities to remain competitive tomorrow. If you’re like some plans, in particular those that are moderate in size or limited in geographic reach, you’ll need to grow—into new sectors, new service areas, or both. The need to grow doesn’t dictate the way to grow. But purely organic efforts to sell more of the same things to the same people won’t necessarily produce the desired revenue and earnings results.
To do business now, plans have to grow
As the group market declines, health plans may need a renewed focus on scale and capabilities. Without scale, plans risk being shut out of burgeoning government business or losing market share as consumers start buying on exchanges. Without broader offerings, competitive advantages might evaporate.
In this changing landscape, health plans should consider how to achieve the growth they need. Expansion may mean serving new geographies and offering new products, tighter links with providers or maximizing member offerings in new areas of the health care value chain.
Can you organize to serve new areas or customer segments? Can you find a way to work with partners—and competitors—to give individual buyers the scope of offerings they want? Finding the right scale in the new health care marketplace will likely call on a variety of new skills.
About the Deloitte Center for Health Solutions
About the Deloitte Center for Health Solutions: The source for health care insights.
Learn more about our strategies for health plans working to find their way in the new marketplace and position their future for sustained performance.
Mergers & Acquisitions
Find out what you need to know about health industry consolidation - what you aim to achieve, how to make it happen and the potential pitfalls.
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