Pricing

• Pricing Strategy
• Cost Transparency

Case Study: Improving Margins through Greater Cost Transparency

• Situation:

  Our client, a major private healthcare provider was unable to:
• Understand profitability of NHS work for both hips and knees
• Negotiate with insurance companies from a position of strength

• Solution:

  FirstCatalyst helped develop a total cost model for all major Orthopaedic procedures to determine margin improvement opportunities and impact on pricing strategy for both private and NHS work. To help deliver the assessment, we:
• Collected a full year's worth of orthopaedic data by procedure
• Collected funder reimbursement information to understand what % of procedure costs were reimbursed and their impact on margin
• Developed an understanding of consultant preference for brand and system and link between brand / system used in NHS environment vs. private practice
• Identified key consultants and held workshops with them to understand appetite to consider change of brand and/or system to help channel volume to fewer suppliers
• Developed a patient profile tool to determine selection of implant system, irrespective of brand

• Impact:

  FirstCatalyst helped the client to:
• Increase cost transparency allowing the business to understand and more effectively margin on all major orthopaedic procedures
• Identify and quantify risk of losing consultant revenue
• Provide fact based analysis to their funder negotiation team to discuss reimbursement rates with major insurers
• Provide the business with a full understanding of the impact on margin from performing work on NHS tariffs
• Deliver and implement a patient profiling tool to allow consultants to make fact-based decisions on implant (brand/system) selections