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Innovation, Growth, and the Expense Challenge
With the political landscape littered with fantasy health
care solutions based on financial models no one can
validate, it is no wonder the American public has no
faith in Washington's ability to run a business. The
undoing of AIG, GM, and others provoked similar
concern about the private sector. But as we look at
these times through the lens of many of our clients,
we see hope and opportunity.
There is a line from a Kenny Chesney song that
goes, "Everyone wants to go to heaven, but no one
wants to go now." That seems to sum up where many
people are right now—everybody is hoping
things will
get better, but few are willing to make the tough calls.
Health care is expensive and made up of a complex
delivery model. We have to change our current
financial and delivery models to provide health care for
everyone and not go into debt for future generations.
People are unwilling to change, and those running the
show lack the expertise to deliver the needed
fundamental change. And raising taxes is about as
creative a solution to the financial challenges of
universal health care as the approach taken by the
companies that think that trimming travel expenses,
mailing costs, and a few positions is the way to
financial stability.
Preparing for growth in an expanding health care
system while reducing costs is a
challenge—one
similar to that facing the financial services sector. Use
this as an opportunity to look at redesigning your
service delivery model and reducing expenses
simultaneously. It can be done! While some
companies are responding by simply slashing
expenses, others are attacking both the revenue and
expense sides of the equation. When we talk with our
clients about improving their service, reducing their
expenses, and growing their market share, we
emphasize a focus on new, innovative ways to replace
what is outdated, unnecessary, or can be improved
with technology.
The winning companies are concentrating on
being
the best in their core markets and shedding
unprofitable lines and services. In customer service,
they are developing new, creative, high-quality
solutions. Stripping away redundant infrastructure and
excess management and focusing on core
processing is the path to profitable growth. It is all
about People, Process, and Technology
working together for a brighter future. Now is the time
to prepare for the next boom.
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