While much of our coverage in The Strategist focuses on external market-moving news from payviders, disruptors, and vendors, we also consistently hear feedback from readers wanting to know how their peers are thinking about—and driving—strategic growth. Therefore, for this edition’s Key Market Dive, we dove through the data from a recent Academy survey that asked 30 strategy leaders about their plans for strategic growth and revenue diversification to bring you six main takeaways.
The survey focused on one- to five-year growth plans. It defined “strategic growth” as opportunities that are not substantially divergent from a traditional health system portfolio, like ASCs, internally branded telehealth or the expansion of existing service lines. “Revenue diversification,” in contrast, was defined as offerings that exist outside of the typical core business of a LHS, like spinoff companies (e.g., PBMs), drug manufacturing, or venture investments.
Key Takeaways
Most systems are spending a similar portion of their budget on strategic growth, while revenue diversification spend is more varied
Most systems are focusing growth strategies on patient loyalty and clinical reputation
Few systems have active dedicated venture capital arms
Systems are continuing to invest in outpatient and virtual care but pulling back from home care
Most systems are prioritizing the same profitable service lines
Inadequate staffing and funding are the most common barriers to strategic growth