Provider Restructuring: Opportunities to Achieve High Performance

Health care providers across the United States face harsh economic realities. State and federal reimbursement and special funding levels are being cut back. Competition from traditional and nontraditional providers is increasing. States are mandating closures and consolidations. Yet the demand for patient services of improved quality and at lower cost continues to grow.

To overcome such complex challenges and achieve high performance, providers need to consider new strategies and innovative approaches. Every aspect of provider operations—including strategy, finance, organizational structure and services—can benefit from a thorough analysis to determine optimal approaches for moving forward.

With market conditions so hostile that some providers are concerned about their very survival, it may not seem appropriate to focus on high performance. Yet Accenture's approach to provider restructuring is grounded in a fundamental philosophy—when the condition is critical, the most powerful medicine available is the best prescription.

Accenture's High Performance Business research into the health care provider sector in the United States reveals two fundamentals for success: improved patient outcomes and business excellence. Improved patient outcomes are achieved through enhanced clinical quality and customer satisfaction. Improved business excellence comes from financial optimization, operational focus and market strategies. When these factors work together, they drive sustainable growth.

A Collaborative Approach
All of Accenture's health providers restructuring activities are supported by deep industry knowledge about the US health care environment and health care providers' issues. As a restructuring project moves from diagnosis, conceptual planning and review of options to implementation of redesigned organizational structures and capabilities, Accenture professionals are able to provide broad experience and relevant knowledge while working as committed members of a collaborative team. This end-to-end approach ensures continuity throughout all stages of the process, from diagnosis to stakeholder management.

A Pragmatic Approach
Because the political, economic and marketplace threats confronting health care providers are often dangerous and urgent, Accenture has developed a number of models to fast-track the analyses required to get to accurate diagnoses and plans. These models are based on extensive experience working with hospitals and other health care organizations to improve profitability and market position by planning and implementing new organizational structures. The expertise includes first-hand experience of the end-to-end hospital remissioning process, operational focus on the critical outcomes that help achieve high performance, and the proven ability to link restructuring with economic and market value.

Accenture's provider restructuring is a proven approach for providers to confront and overcome many of today's tough challenges. In addition, it is a highly focused approach to help providers identify and implement future options that can create real and lasting value. The result is that providers do more than just survive—they move toward high performance.

Accenture helps US providers analyze and make restructuring decisions and then works with them to help achieve interim and long-term objectives by transforming the systems and processes that underlie every facet of their performance. A typical provider restructuring project consists of three key phases:

1. Establishing the restructuring framework
   During this phase, Accenture works with clients to identify restructuring options and criteria for prioritization via a thorough understanding of internal and external factors. The internal analysis establishes the hospital's financial, strategic and operating goals. The external analysis evaluates current and future political, economic and market environments. From here, the team sets a guiding strategy. Throughout this phase, Accenture professionals facilitate decision making and communication.
   
   
2. Conducting the restructuring and redesign planning
   With a guiding strategy in place, Accenture provides tools to redesign and refine the financial, strategic and operational models associated with the recommended restructuring option. This phase includes the identification of possible risks or barriers to progress, and relevant solutions. The Accenture team helps facilitate the required action plan and helps implement team development.
   
   
3. Executing the restructuring plan
   Finally, Accenture professionals provide comprehensive support throughout the restructuring implementation phase: assessing readiness and establishing timelines; preparing communication plans; providing project management office support; and establishing tracking and measurement processes.

Provider restructuring creates a transformational route away from inappropriate strategies and blocked growth paths. Teaming with a provider, Accenture addresses the operation holistically to create an integrated series of solutions to help them move toward high performance. This means using the three-phase restructuring sequence to address strategies, structures and other factors that contribute to performance in each domain and to the overall performance of the enterprise.

Contact us to find out more about how provider restructuring can help your organization achieve high performance.