Key learnings from the survey:
- A significant number of physicians is indifferent towards the hospital, which is disadvantageous for the hospital in terms of referrals.
- Many doctors have issues with the complex billing.
Next steps of action:
- The hospital should strengthen its relationships with the physicians. This could lead to a higher number of referrals and increase the revenue per customer (=patients).
- The physicians complain about the complex billing. This could be an opportunity to follow up.
It looks like the hospital is offering a yet unpromoted service that could satisfy an existing demand by physicians. To see, whether this could be a viable business opportunity, we would need to know numbers to calculate the economics of this service.
Plan of approach:
- We assume that the physician can use the time saved on the billing completely on seeing more patients. While billing does not generate revenue, seeing patients does.
- Relevant KPI for the physicians are Return on Investment, New Annual Profit, Increase in Annual Profit
Good candidates would clarify the cost structure of a physician, namely whether additional costs occur, when more patients are seen. In the case, the calculations wouldn't change, as seeing more patients will not increase the cost of the physician/ All costs are fixed costs
Since this is a candidate-led case, the candidate should develop a structure to identify and solve the underlying problem, while the interviewer guides him towards relevant areas of inspection if necessary.
This is a profitability case. The interviewee must evaluate the reason for the decline in profitability and evaluate additional business opportunities.
The first part of the case is a qualitative analysis, the second encompasses calculations and is quantitative.