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Health Care Current Library

This weekly series explores breaking news and developments in the U.S. health care industry, examines key issues facing life sciences and health care companies and provides updates and insights on policy, regulatory and legislative changes. 

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Growth and Scale

Health Plans

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.

Growth and Scale: Not just important, now critical for survival

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Learn more about growth and scale in health plans

The market for health insurance is changing too much, too fast, for traditional models to survive. It’s important to pursue operational synergies—people, processes, and technologies—and execution of growth strategies in a focused way. And if you identify where you want to take your plan and map out a thoughtful way to get there, growth can pay tangible rewards.

Read more about growth and scale.  Download the report.

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About the Deloitte Center for Health Solutions

About the Deloitte Center for Health Solutions: The source for health care insights.

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Learn more about our strategies for health plans working to find their way in the new marketplace and position their future for sustained performance.

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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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Ollie McCoy

Principal | Life Sciences & Health Care

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Director | Life Sciences & Health Care

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