Tag: scale

Recon takes an analytical look behind select developments in healthcare

Are some of Kaiser’s regional ambitions starting to pay off?

Jacob Wiesenthal and Tory Wolff September 19, 2022

PDF: Are some of Kaiser’s regional ambitions starting to pay off? We have produced a new study evaluating developments in Kaiser’s regions (outside of California). The report provides an explanation for recent improvements in performance as well as leadership and governance changes. Further, we identify several implications for the future of Kaiser strategy. The Kaiser Permanente model has a heavy infrastructure, and so it requires a lot of local market share and operating scale to deliver a positive net underwriting margin (we roughly size how much using statistical analysis). Yet,

Cleveland Clinic’s bold land grab in care improvement: the Community Health Systems deal

Tory Wolff March 21, 2013

Summary The deal locks in an option for Cleveland Clinic to grow its clinical practice transfer business 4x its current size and much larger than Cleveland Clinic’s peers There will be significant challenges to executing given the wide geographic dispersion, Community Health Systems’s mostly unranked facilities and strategy of using the hospital “channel” to drive change in care practice In the long run, the deal will reinforce Cleveland Clinic’s advantage in Big Data (it will take time to realize this) Community Health Systems faces little competition in many markets, potentially

ESRX-MHS Part 2: mail facility speculations (…or: Indulging my Inner SWAGer)

Tory Wolff August 1, 2011

Summary ESRX was running at close to maximum capacity at its mail facilities while MHS has room to spare. ESRX is facing a scenario of significantly increased demand as greater mail penetration is achieved in the Wellpoint book and lacked the capacity to meet this demand. Similarly, ESRX would not be able to meet increased demand from reform coverage expansion. By combining, ESRX avoided having to build a new facility and the combined entity appears to have enough capacity to close at least one older mail facility. Given that a

Consumerism bulk-up: Quick thoughts on Aetna’s acquisition of PayFlex

Tory Wolff July 20, 2011

Payflex is an administrator of account-based benefits including HSAs, HRAs, FSAs and COBRA benefits. The company has $58M in revenues, 1M individual consumer accounts and 3,300 employer customers. On Monday, Aetna accounced plans to acquire the company for $202M. The acquisition pricing looks rich relative to the other benchmark out there: Wageworks is a competitor about 2x the size of Payflex and which recently filed an IPO to sell 23% of the company for $75M (in the works at least since April and described in detail in the registration statement

Tag: scale

Recon takes an analytical look behind select developments in healthcare

Are some of Kaiser’s regional ambitions starting to pay off?

Cleveland Clinic’s bold land grab in care improvement: the Community Health Systems deal

ESRX-MHS Part 2: mail facility speculations (…or: Indulging my Inner SWAGer)

Consumerism bulk-up: Quick thoughts on Aetna’s acquisition of PayFlex

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