Consulting project with the topic: "a successful roadmap for healthcare providers to renegotiate prices with health insurance companies - foundations for a three-step strategy"

Abstract

This consulting project focuses on the development of strategy for health care provider to renegotiate prices with health insurance companies. The initial objective of the project was, in a first phase, to high light a general increase in exogenous costs in the health care sector, to support an intended renegotiation. From this starting point ,the Team proposed the execution of are negotiation strategy based, not only on how to leverage this evidence of the exogenous costs increase, but also on possible ways of joint value creation. To meet these objectives, internal and external analysis were conducted to identify opportunities and challenges in both the health care and insurance markets. This analysis allowed, not only to infer about exogenous costs increases and their impact on health care providers, but also to understand the possibility of creating value for both stakeholders, by matching the client’s strengths with existing market opportunities. Further more a financial model was developed with the intention of quantitatively helping the client from the argument preparation moment to the final renegotiation meetings. More over, a qualitative assessment of strategies to create value was performed, supporte don in depth interviews made to subject and industry experts. The final outcome of the project was materialized in to a set of recommendations based on three different scopes: price and costs historical evidence, price revision mechanisms and shared-value initiatives. On a final note, the client has already begun to implement our recommendations, there fore signalling the true importance and success of this body of work.