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Growth and Scale

To do business now, plans have to grow.

As the group market declines, health plans may need a renewed focus on scale and capabilities. Without scale, plans risk being shut out of burgeoning government business or losing market share as consumers start buying on exchanges. Without broader offerings, competitive advantages might evaporate.

In this changing landscape, health plans should consider how to achieve the growth they need. Expansion may mean serving new geographies and offering new products, tighter links with providers or maximizing member offerings in new areas of the health care value chain.

Can you organize to serve new areas or customer segments? Can you find a way to work with partners—and competitors—to give individual buyers the scope of offerings they want? Finding the right scale in the new health care marketplace will likely call on a variety of new skills.

See Thinking forward for more insights on this issue.

Thinking forward

  • Growth and scale: Not just important, now critical for survival
    Purely organic efforts to sell more of the same things to the same people won’t necessarily produce the desired revenue and earnings results. Explore our current thinking on growth and scale and the range of choices you might consider.
  • Unlocking value in health plan M&A: Sometimes the deals don’t deliver
    Deloitte’s analysis of 44 health plan merger and acquisition (M&A) transactions found that fewer than half led to sustained improvements in comparative market value three years after the deal closed.
  • A view from the Center: Convergence in health care: The opportunity in uncertainty
    Organizations across all parts of health care are using change as an opportunity to make bold plays from a strategic perspective. Some of that is manifesting itself in consolidation within sectors, and some of that is manifesting itself in convergence across sectors.

Watch, listen and learn

  • Consumer behavior over lab results: The power of lifestyle-based analytics
    Register for the October 21 webcast.

Dig deeper

  • Health Sciences Practice
    Industries we serve.
  • Deloitte Center for Health Solutions
    Health care insights start with research.
  • Health Care Current
    Read this week's summary.

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