A structured approach for consolidation and exit decisions
Systems defer rationalization for reasons that are individually rational: growth owns the strategy agenda, the numbers are not as straightforward as they look, mission commitments can change the calculus, and the stakeholders who must agree do not answer to strategy. This framework cannot dissolve these constraints, but by posing them as questions it can help identify which are operative. And by working through the questions in a logical order, it can also help build the coalition that can analyze, decide, and act.
1. Can you act?
Timing, sponsorship, and the physician veto
2. Should you act?
Quality, market, and the true economics
3. Can you deliver?
Legal clearance, communications, and reinvestment