New BDC Insights Paper Details How Healthcare Providers Can Improve Market Competitiveness by Developing a Consumer-Focused Pricing Strategy

News provided by

Nov 05, 2019, 08:43 ET

MIAMI, Nov. 5, 2019 /PRNewswire/ -- BDC Advisors, the national healthcare consulting firm, announced release of a new Insights paper "How healthcare providers can conduct a consumer-focused pricing strategy" by BDC Directors Kevin B. Sears and Robert A. Dickinson, published in the November issue of hfm magazine of the Healthcare Financial Management Association.

In the article, Sears and Dickinson lay out the key actions forward thinking health systems have used as part of their strategic pricing strategies and detail the supporting market analysis and tools used to capture market and margin-based information to build their plans of action. As healthcare becomes increasingly consumer-focused, the authors argue healthcare providers have the opportunity to improve their market competitiveness by employing a strategic pricing assessment which can ascertain the organization's ability to optimize prices for their various service offerings and build competitive advantage in services where consumers increasingly choose among equivalent healthcare services based on price.

Based on their experience with recent provider clients, the authors recommend a four-step process to set the pricing strategy which includes (i) developing overall pricing principles and a strategy, (ii) identifying tactics to shift resources among services to match areas of opportunity, (iii) conducting sensitivity analysis around future market scenarios, and (iv) finalizing pricing by service and site. Kevin Sears concludes, "pricing strategies will become increasingly essential for provider systems to keep in-step with the evolving consumer focus as insurance product designs continue to add consumer-driven elements. Providers that develop effective pricing strategies will emerge as the winners."

ABOUT BDC ADVISORS AND THE AUTHORS

BDC Advisors, LLC is a national healthcare strategy consulting firm that transforms and grows healthcare organizations. Established in 1990, the firm's services include health enterprise strategy, payer/provider innovation, physician enterprise strategy, organization design and development, and population health management. For further information, contact [email protected], 415-971-7327 or 267-207-5203.

Kevin B. Sears, Director, leads BDC Advisors' Payer-Provider Innovation practice and is a nationally-known managed care and population health expert. He has led payer and provider business operations for national and international healthcare systems such as the Cleveland Clinic and Trinity Health, as well as Coventry Health Care and Centene.

Robert A. Dickinson, MBA, Director, leads the firm's Health Enterprise Strategy practice, specializing in revenue generation and growth. He has led provider systems in integrated financing and care delivery resulting in over $1.9 billion in top line growth and performance improvement.

SOURCE BDC Advisors