Health Management Consulting

Assessment of market expansion options for leading hospital and health care system
A large health care system was considering expansion into new markets. We explored several key market opportunities and researched the reimbursement and payment landscape, competitive landscape, existing health care infrastructure, overall health of the local economy, and market forecasts of key parameters. Read our blog on The Declining Health of the Local Market: When and How Should Your Health Care Business Expand into New Markets.

Assessment of market potential of new product and service offerings
A quality-assurance company was exploring expansion into new product and service markets nationally. We conducted survey research of potential clients to determine the feasibility, potential market size, competitive landscape, market forecasting, and profitability of an innovative suite of new services.

Market expansion options for a leading university’s health-related educational programs
A university was exploring options to add program offerings in health-related fields of study. We identified several potential academic program expansion options and conducted extensive research on market dynamics and feasibility for each potential new service. Read our blog on Training the Health Economics and Outcomes Research Workforce of the Future.

Economic and organizational analysis of a novel diagnostic/clinical laboratory model
This project is part of our unique capability in the economics of diagnostics. A diagnostic and clinical laboratory company sought external assessment of their business model. We conducted an extensive review of the literature to provide evidence of the effectiveness and outcomes of the company’s innovative products and services. Topics covered included business process management, change management, and market development and expansion.

The economics of physician ownership of ancillary services
This project focused on management consulting, policy analysis, organizational design, organizational economics, and institutional economics. This project developed a conceptual framework to evaluate the tradeoffs associated with physician ownership of in-office ancillary services (IOASs). There is some evidence supporting the existence of scope and transaction economies in IOASs. Improvement in flow and continuity of care are likely to generate scope economies and improvements in quality monitoring and reductions in consumer transaction costs are likely to generate transaction economies. Other factors include the capture of upstream and downstream profits, but these incentives are likely to be small compared to scope and transaction economies. Read more about the Organizational Boundaries of Medical Practice: The Case of Physician Ownership of Ancillary Services.

Calculating Return-on-Investment of Workplace Health Promotion Programs
For a large aerospace manufacturer, Avalon researchers conducted an inventory of existing workplace health promotion initiatives. Gaps were identified and additional initiatives were proposed. Return-on-Investment was calculated for existing and proposed workplace health promotion initiatives, including recommendations for changes in the built environment, cafeteria offerings, incentive-based exercise programs, smoking reduction programs, and preventive health initiatives.

The economics of hospital specialization
This project reviewed the existing literature, reports, and findings from site visits to explore the economic rationale for niche and specialized hospitals. This project focused on management consulting, policy analysis, organizational design, organizational economics, and institutional economics. The discussion focuses on six factors associated with specialization: consumer demand, procedural operating margins, clinical efficiencies, procedural economies of scale, economies (and diseconomies) of scope, and competencies and learning. Read more about The Economics of Specialty Hospitals.

Effect of health care cost trends on health insurance long-term actuarial estimates
Part of our business analytics, data analysis, and data mining practice, this project reviewed the data and statistical methods employed by a leading provider of medical care data. The data and methods were compared to those of the company’s major competitors. Read our blog on Using Publicly-Available Health Care Databases to Value & Price Medical Care Services.

Evaluation of statistical methods of leading data provider
How do underlying trends in utilization, prices and expenditures in the health care economy affect long-term health insurer actuarial estimates and loss reserving? Part of our business analytics, data analysis, and data mining practice, this project gathered a wide variety of data and constructed a longitudinal model to predict trends in health care costs through 2020. Read our blog on U.S. Health Care Costs: Disentangling Underlying Trends from the Effects of the Affordable Care Act.

Data analysis to assist a hospital system in third-party payer negotiations
A large hospital system sought to benchmark their charges against local market charges. We calculated usual, customary and reasonable (UCR) charges for inpatient diagnoses related groups (DRGs) and outpatient procedures. Medical care charges and billing data were compared to prevailing rates and “reasonable value.” Read our blog on Using Publicly-Available Health Care Databases to Value & Price Medical Care Services.