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January 7, 2010


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About Nolan
The Robert E. Nolan Company is an operations and technology consulting firm specializing in the health care industry. For 35 years, we have helped clients redesign processes and apply technology to improve service, quality, productivity, and costs.

Our staff members are all senior industry experts with 15+ years in the industry. Visit www.renolan.com to for health care articles, white papers, and client success stories.

Innovation, Growth, and the Expense Challenge

Dennis Sullivan
Chief Executive Officer

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their expenses, and growing their market share, we emphasize a focus on new, innovative ways to replace what is outdated, unnecessary, or can be improved with technology.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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