Healthcare is experiencing momentous change, as the forces of regulation, consumerism and technology converge with the imperative for greater value. Market participants respond by transforming how they choose to compete — the value propositions they offer, the business models they employ, their operative scale and how they reach their respective customers.
It comes as no surprise that healthcare IT and technology-enabled services are playing a critical role in enabling and facilitating this transformation, fundamentally impacting every constituent within the healthcare ecosystem.
With a foundation of experience across that ecosystem, L.E.K. has developed strong capabilities to assist clients that are investing in, delivering and/or experiencing these changes, to help demystify and clarify the options and implications. We have a strong track record of advising a large number of payers, providers, medical device/technology providers, biopharmaceutical and diagnostic product manufacturers, service providers, and digital/IT-focused companies across a range of issues related to healthcare IT and tech-enabled services.
Key questions and challenges
Service providers come to us to address key challenges and questions such as:
- How will healthcare reform, as well as trends such as value-based care, consumerism and population health, affect specific constituents and the demand for particular services and technology solutions?
- How can we expand our product, technology and service solution offerings for greater growth and sustainability?
- How can we optimize a novel healthcare IT, digital or tech-enabled solution to meet stakeholder needs and gain market traction, and what is the related commercial opportunity?
- What is the relative appeal of a best-in-class point solution versus an end-to-end platform?
- What business models maximize the likelihood of near- and long-term success?
- Which specialties are likely to move out of hospital settings and into community settings, and who is best-positioned to benefit from this trend?
- What services are our potential customers insourcing versus outsourcing? What is the trend, and what are the drivers of that trend?
- How can the private sector support and collaborate with the public sector to improve efficiency and care quality?
- What is the opportunity presented by digital healthcare, and where is global spending principally deployed?
- What is the potential for telehealth, and what market penetration rates can we expect?
- How can technology be integrated with care services to enhance operational effectiveness?
Examples of our work
To learn more about how we help clients create value, please refer to these case examples:
- Assessed the total addressable market and developed a growth strategy for a provider of practice management and electronic health records solutions to chiropractic and physical therapy providers. The client pursued the recommended strategy and established a new, profitable line of business.
- Developed a strategic and go-to-market plan for a novel physician workflow efficiency, compliance and care delivery IT platform, enabling successful commercialization of an internally developed suite of technology solutions.
- Evaluated the healthcare analytics solutions market, including segmentation, sizing and competitor review, to inform investment prioritization and develop a recommended portfolio approach to mitigate risk and optimize returns for a healthcare IT investor.
- Conducted commercial due diligence of a provider of a cloud-based software-as-a-service point-of-care solution to healthcare providers (hospital systems, hospitalists and specialists), to help manage charge capture as part of medical billing. The client elected not to pursue the investment due to issues and risks identified during the diligence.
- Completed a market assessment of a provider of revenue cycle management and patient engagement multichannel communications, data services, and payments to hospitals, software resellers, physician practices and healthcare-focused collection agencies. Our work enabled the successful sale of the company by the private equity owner to another investor.
- Conducted an in-depth assessment of the population health market for a provider of care management, RCM and physician advisory services, and developed a business case and strategy for entering the market. The business case yielded subsequent investment to develop a differentiated offering and value proposition for the population health platform.
- Conducted a strategic review of the markets in the U.S., the U.K., Spain and Germany for a global provider of telecare and telehealth services. Our work enabled a successful refinancing effort and established a foundation for continued global growth.
- Created a comprehensive database of the accountable care organization market opportunity to inform a go-to-market strategy for the services and technology business unit of a leading payer-provider. Our analysis included an in-depth evaluation of the ACO services market (including sizing and segmentation), current and future competitors, customer needs, and articulated implications for the client’s go-to-market strategy. The client subsequently greenlighted additional investment, substantially refining the positioning of its service line and modified sales targeting, which led to accelerated growth.
- Completed an opportunity assessment for a leading health and financial services provider, and developed the strategy for a retiree private exchange. The client invested significantly to pursue the opportunity and has continued to successfully grow the business.