The healthcare industry from our perspective
Accelerated by the pandemic, all pillars of the health care system are undergoing change and society is increasingly demanding change. The challenges of the healing and caring pillar of hospitals, clinics and care providers are fundamentally different from the upcoming tasks of the diagnosing and treating pillar of pharmaceutical, biotech and medical technology companies. The third pillar is the health insurance funds and insurance companies, which in turn are influenced by different factors.
Due to the complexity of the issues, we advise our clients in the health sector in close cooperation with our experts in the fields of science and research (pharmaceutical and biotech companies), industry (medical technology) and financial service providers (health insurance companies and insurers). The need for changes in the healing and caring pillar of the health care system was highlighted as if through a burning glass by the pandemic and was substantiated in regulatory terms by the legislator in mid-2021. The following focus is therefore on the healing and caring pillar of the health system.
We see challenges for the operators of care for the elderly and sick in Germany particularly in the following topics:
Strategic orientation and management
Market growth and simultaneous consolidation are continuing at a rapid pace. In addition, political guidelines on remuneration, refinancing and generalist nursing training are making their way into the sector. Historically, the medical and nursing service portfolio has often grown in a less structured way and in many cases is loss-making. This results in various strategic questions, which many operators have only addressed actionistically in the past. A rethink is necessary here in order to orient oneself towards the future. At the same time, data- and indicator-oriented management must be established in order to secure the results and quality of the hospitals, facilities and services in the long term.
Excellence in the central functions
The demands on the central functions are also constantly increasing. On the one hand, they have to be consolidated and reorganised in order to use synergy potentials and reduce costs. On the other hand, they must be strengthened in their operational excellence in order to support the operations in the best possible way. A lack of operational capacity due to weak and inefficient central functions makes it impossible for clinics, facilities and services to operate profitably in the long term. At the same time, inefficient central functions significantly reduce profitability and results.
Shortage of staff and skilled workers
Demand is rising, the market is growing, there is a shortage of skilled workers. The most important asset of the healing and caring pillar of the health care system – staff – is in short supply. The competition for qualified staff is becoming more and more intense, also due to the generalist nursing training and the further increase in market salaries. Recruiting and retaining staff through clear career and remuneration structures is becoming a key competitive factor and, at the latest since the demand for collective bargaining, also ensures the operators’ own ability to refinance.
Growth Fields [Focus on Nursing]
The growth and profitability targets of many operators can no longer be achieved by expanding inpatient care alone. There is a need for expansion to include lucrative care areas such as outpatient services, assisted living facilities and shared care. Likewise, intensive, somatic and psychological care, but also outpatient palliative care are increasingly coming into focus. The challenges lie on the one hand in the structured integration of these areas and on the other hand in new organisational, competence and management needs.
Our advisory services for clinic and care operators
ADVYCE supports and accompanies you in the issues that currently affect operators, especially with the following offers:
Securing human resources and refinanceability in the long term
Together with you, we develop an attractive remuneration model or help you introduce a collective agreement that exists on the market. We bring transparency to existing salary structures, harmonise them and position you competitively for the recruitment of new, generalist-trained professionals. Establishing your own nursing schools and designing a holistic career model with a high retention effect for your own organisation should always be an option. Furthermore, we ensure not only the refinancing of your personnel costs, but also the quality and motivation of your staff. We help you to conceptually develop and operationally establish a transparent, sustainable and effective management system for your most important asset.
Raising synergy potentials and sustainably reducing costs
Together with you, we create transparency about profit drivers and causes of losses. We identify fields of action, starting with the hospital and facility network, through historically grown administrative structures to operating theatre, occupancy and case management. Together we raise the synergy potentials between different service areas and reduce costs at the head office. From expert opinions to the complete restructuring of operational units and central functions, we accompany you along the entire value chain on the way back to profitability and attractive margins.
Aligning the organisation for further growth
Whether organic or inorganic – growth is the order of the day. We work with you to develop the expansion of existing business areas and support you with a targeted buy-and-build strategy. Together we lay the foundation for the scalability of your business model in your organisation. We identify and realise synergies and economies of scale in your central functions, integrate acquisitions and streamline decision-making processes at all levels. Together with you, we build sustainable training and recruiting structures and at the same time push for an increase in capacity utilisation in clinics, facilities and services, without any loss of quality or margin.
Developing new growth fields in the market
Based on a clear strategy, we support you in developing new growth areas in the care market. Together with you, we define monetary and non-monetary goals that you can stringently pursue in your projects. We support you not only in the conceptual development of resilient business models, but also in their implementation. We establish the necessary – often agile – structures, define competence requirements and development paths, implement modern control mechanisms such as OKRs and anchor a future-oriented mindset through change measures.
Contact to ADVYCE