Preparing an AMC for Tectonic Market Evolution
CHALLENGE
A 500+ bed quaternary academic medical center had experienced decades of uncontested success in steadily growing market about 90-minutes from the next closest academic medical center. Previously, the organization employed a strategic model focused on capturing tertiary and quaternary referrals from a region of 3 million people across 30+ counties. Once a market that existed in isolation of surrounding larger population centers, attractive payer mixes coupled with consistent growth and consolidated surrounding markets meant competition in the market was about to heat up. The AMC was unaccustomed to aggressive competition and needed a forward-looking plan to priorities and rationalize investments.
120+ stakeholder interviews
Demand forecasting
Service line / institute analysis
Competitor analysis
Horizon scanning
Site-of-service planning
Customized demand forecasting
Key room and space need determination
Facilitated strategic co-creation sessions
APPROACH
What initially was an ask for a facilities master plan quickly pivoted into a comprehensive strategic master plan for the organization. Comprehensive market, organization and institute-level analysis from strategic, operational and experiential point-of-view were overlaid with campus and building considerations. Clinical, academic and research planning lanes ran in parallel with nearly constant cross-pollination of information and ideas to ensure alignment between the three core missions. Over 100 stakeholders were interviewed and nearly 3 million square feet of clinical, education, research and administrative spaces were walked, photojournaled and evaluated for their ability to respond to the future competitive landscape. Future demand projections were customized to reflect potential market share shifts, physician recruitment strategies and new programmatic investments.
RESULTS
A long-term strategic vision was implemented that focused on positioning the organization’s clinical, academic and research pillars to successfully respond to projected market shifts including:
health system consolidation and potential loss of referral base
programmatic growth by local community health systems
entry of competing academic health systems into the market
entry of disruptive and virtual competitors into the market
changing consumer expectations around access and convenience
The long-term strategic vision incorporated necessary investment on the main academic campus as well as a plan to aggressively distribute ambulatory and acute care services across the region to respond to market demand while ensuring long-term sustainability of the organization.
4
acute care sites added
20+
ambulatory care sites added