SCALE Case Study:

Sell-Side Preparedness: Market Study & Business Plan Validation

Client Profile

Services Deployed

Market Research

Payer & Regulatory Research

MSO Strategy Consulting

Business Analytics

Overview

SCALE was engaged by a pain management MSO, in collaboration with a sell-side investment bank, to perform a market study and business plan validation assessment. The Company’s business model was centered around a differentiated MSO partnership model targeting and custom-tailored to service the specific needs of community hospitals.

The Company’s innovative business model presented compelling growth opportunities but represented a unique approach to servicing the market.

As such, key objectives included:

Validating demand for the Company’s services amongst key market stakeholders including payers and community hospitals
Evaluating payer and regulatory reimbursement trends that could support the Company’s value proposition and / or result in pending business headwinds
Analyzing the Company’s business plan, target growth plan and supporting financial model to prepare for go-to-market process and prospective buyer diligence

Execution

Assessed reimbursement levels under various scenarios (HOPD, ASC and office), as well as hybrid scenarios
Stress tested acuity of pain management cases and provider location to ascertain assumptions for what could be performed at an HOPD site
Reviewed management service agreement, HOPD profitability, and profit to Client’s business based on its underlying cost structure

Results

Developed thoughtful presentation that could be used by Client as a document for discussion with potential private equity buyer
Summarized key insights from market & payer research to support the Company’s value proposition
Augmented the Company’s business plan & financial model to provide clarity on the potential of the business model and align the Company’s business model with key findings of SCALE’s analysis and market & payer research
Quantified potential profitability based on current footprint, as well as revenue and profitability under different site of service assumptions
Developed and articulated an optimum strategy for number of HOPDs and allocation of providers under current footprint
Created parameters for future HOPD partnerships and necessary location and demographics of new providers

Let's SCALE together

SCALE Healthcare is based on the foundation of a singular focus – elevating management performance across healthcare services. We are focused on the entire suite of operational advisory and diligence services exclusively to healthcare service organizations, with local team presence across 10 states.

Unlike the many consulting firms that offer more narrow and often more impractical solutions borne of limited or very general expertise, we rely on our team of 75+ carefully selected senior operational healthcare experts to ensure we provide the most relevant and value added experience across the full range of management disciplines and clinical specialties that fall within healthcare services.

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