Healthy Spending
The new CEO of HealthCorp, a not-for-profit health insurer, has recently engaged you to help her solve a budding problem. Over the last 3 years, HealthCorp has experienced revenue erosion while peers …
CasesCoach Comment
This case tests the candidate's ability to connect customer satisfaction metrics (NPS) to business outcomes (revenue), calculate efficiency ratios under budget constraints, and synthesize data into a prioritized recommendation. It requires both quantitative rigor and strategic thinking to balance multiple competing initiatives within a constrained budget.
Estimated Time
29 minutes
Difficulty
Medium
Source
Duke
44
/ 100
The new CEO of HealthCorp, a not-for-profit health insurer, has recently engaged you to help her solve a budding problem. Over the last 3 years, HealthCorp has experienced revenue erosion while peers are experiencing both top and bottom line growth. HealthCorp would like you to help diagnose the cause of this poor performance, and eventually, help formulate a course of action to improve revenue by $1B in the next two years.
Clarifying Information
- This is a growth case centered around customer experience
- General industry info: health insurers negotiate prices with physicians and hospital networks based system by system negotiations. Prices are typically related to Medicare reimbursements
- HealthCorp does not have a material number of Medicare or Medicaid patients
- The provider market with which HealthCorp works has undergone rapid consolidation within the last 5 years
- HealthCorp has seen a large, for-profit disrupter enter the market in the last 2 years
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