As historical margin pools have shifted across the industry and within Leading Health Systems, most systems have sought different opportunities for revenue diversification. Which opportunities seem to be bearing fruit? How are top systems thinking about these opportunities and how much leeway to give them? We explored how LHS are budgeting for revenue diversification opportunities and shared survey results on which opportunities most of you have tried or are looking to try. From that, we chose four areas to explore in a bit more depth.
• We picked two opportunities where many LHS have launched programs but are seeing variable success: specialty pharmacy and reference labs. We shared an investment framework and success factors from our interviews with top performing programs.
• Then we picked two where many strategy leaders have not launched programs but are looking to: direct-to-employer (DTE) contracting and genomics/precision medicine. We presented several ways LHS have approached their offerings and early considerations for financial sustainability.
Revenue diversification program snapshots are also available here
Key Words: Margin pools; revenue diversification; payer strategy; pharmacy; labs; direct to employer; genomics