BUSINESS DEVELOPMENT
Want to Enter a Competitive Health Care Market?
Tips and tricks to overcome challenges and succeed.
In today’s fast-paced health care environment, achieving success will take more than hard work and intuition. This philosophy couldn’t be any more applicable than in the realm of business development.
Take, for example, the Atlantic Health System, headquartered in Morristown, New Jersey. In 2014, it decided to establish a presence in a neighboring market saturated with intense competition. Without any preexisting footprint, Atlantic Health faced several uphill battles; however, not only did they succeed, but they’ve since thrived.
With just the support of a handful of relationships, Atlantic Health relied on a multipronged strategic approach.
“We believe that success in health care — that is to say, helping patients access care more easily and affordably — sometimes requires taking a non-traditional approach,” said Linda Carifi, MHA, Director of Business Development at Atlantic Health. “When we can move independently as a system to deliver care, we do. But in instances where it makes more sense to act collaboratively, for example by establishing a joint venture with what traditionally might be considered a competing organization, then we are open to partnerships that serve the best interests of our patients.”
An example of this approach is the creed: “Be the competition and join the competition.”
“We decided to team up with a local hospital in the area, which normally would’ve been seen as a risk because they are our competition, but we saw it as an opportunity to expand and further develop strong relationships, ultimately better serving the community,” said Carifi.
Despite encountering a multitude of challenges, including infrastructure development and relationship building with local physicians, in December 2019, Atlantic Health opened a brick-and-mortar facility that is now home to more than 20 different specialties. This hub now complements three de novo practices, as well as a vascular surgery center and a joint venture that includes an ambulatory surgery center.
It has also since established a booming 200–strong physician network, with a formidable primary care base of 10 employed practices. Additional accomplishments include year-over-year increases in patient encounters, referrals and retention.
How is all this possible, you might ask yourself. The answer involves a laundry list of items, such as the time to market, leadership buy-in and dedicated capital investment, but the main takeaway is something called data-driven decision making.
“To ensure we are well-positioned to care for every community that needs us while also positioning the organization for future growth and success, Atlantic Health has invested in data analytics and remains closely attuned to the factors driving health care consumption, both in our market and nationally,” said Naomi Savitz, MPH, director of business development at Atlantic Health.
"Several components are included in data-driven decision making,” she added. “For example, models projecting an aging population help to accurately place primary care and specialists; physician demand analysis predicts if the local physician market is ‘aging out’ and focuses new provider recruitment; and assessing income and payor mix better helps you understand the population you serve. Asset mapping is another component of data-driven decision making.”
However, data-driven decision making does not happen in a bubble; it is done in collaboration with a team that holds thorough market knowledge, including local physicians and team members in the field. “Success would not have been possible without the formation of a strong team,” said Carifi.
“Atlantic Health started by building an internal coalition with leadership, planning, business development and other key stakeholders to ensure that strategic decisions were made thoughtfully,” she said. “Success is based on collaboration across all levels. Leaders at every level help shape and guide strategic goals, and then empower and assist the team to achieve those goals. Physicians can provide an extra layer of leadership around quality, strategy, patient safety, integration and practice operations.”
In addition to analytics and leadership, there are several best practices that have served Atlantic Health well. Here are a few elements that can be applied to your strategy:
- Creating electronic contact cards will facilitate real-time sharing of cell phone numbers between providers to ensure direct communication.
- Customizing medical neighborhoods, based on practice geography and needs. Most important is to maintain and update this tailored list of providers on a continuing basis. If a practice is closer to one hospital than another, the list will include services weighted toward that location.
- Ensuring each office has access to system-wide provider directories and the ACO (accountable care organization) app so they can leverage system-wide programs and services.
- A “palm card” is a medical neighborhood designed on medical-grade plastic that fits in the palm of a provider’s hand—more specifically, in a lab coat pocket. This tool is designed to be at the providers’ fingertips for referrals while in the exam room.
- Networking and socialization are possibly the most important aspects to building relationships and trust. Technology is useful but it's not a replacement—it supports the personal relationship and not the other way around.
Both Carifi and Savitz discouraged organizations from merely copying what they have done, but rather learning from it
“Our message is not about duplicating our model, but rather taking away our key accomplishments and being prepared for your own challenges. Take the bones of our plan and then customize your solutions based upon data and market knowledge, and absolutely engage strong physician leadership to ensure your own success.”
Learning More
- To hear more about this approach from Linda Carifi and Naomi Savitz, click here to listen to an episode from SHSMD’s rapid insights podcast episode.
- The full recording from Naomi and Linda’s in person presentation, “Challenges and Successes: Entering a Competitive Market” at the SHSMD annual conference on September 20, is available to all registered attendees of the annual conference.
- To read the SHSMD blog on this topic, “How to Enter a Competitive Market and Succeed” click here.
- If you did not register to attend SHSMD Connections, check back here to purchase on-demand conference recordings.
This article features interviews with:
Linda Carifi, MHA
Director, Business Development
Atlantic Health System
Morristown, New Jersey
Naomi Savitz, MPH
Director, Business Development
Atlantic Health System
Morristown, New Jersey
