- What is our fundamental goal? Clarity on what you are trying to do for whom is essential. Creating value must be the overarching goal.
- What business are we in? Patient value is created in the treatment of a specific clinical condition across the full continuum of care and care sites.
- In what scope of business should we compete? Success requires making specific choices about what you do for whom. No organization can serve every need.
- How will we be different in each business? Each condition treated requires a unique value proposition. Without it, price is the only differentiator, and a race to the bottom ensues.
- What synergies can we create across business units and sites? Value can be created at the system level if organizations truly integrate care by consolidating care by condition at a location, performing services at the lowest-cost location and coordinating care across sites.
- What should be our geographic density and scope? Organizations must serve an area large enough to generate an adequate volume of patients for each condition to enable value creation. Density and location of service sites must be sufficient to enable value creation. Growth is not a strategy; expansion should be undertaken with a clear path for creating value.
* Content abridged from Thomas Lee, M.D., and Michael Porter, Ph.D., "Why Strategy Matters Now," New England Journal of Medicine, April 30, 2015