Capstone – Project

Growth Strategy and Business Development for Self-Funded Corporate Healthcare

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Engagement Synopsis

Self funded employers can save 10 to 25% by improving their health plans by managing orthopedics through a regenerative medicine approach first before surgery (see Meredith). Given that 126.6 million Americans will have a musculoskeletal condition annually with a cost of $213 billion in treatment, care, and lost wages, large employers are motivated to find more cost effective options. Since 50% of these conditions can be managed by a regenerative orthopedic procedure at 20% cost of surgery and average recovery time of 3-5 days, employers are prudent to consider this alternative strategy of care. We are a group of 6 orthopedic surgeons and 1 regenerative ortho provider. Given the landscape of increasing regulation and lower reimbursement, small groups with the appropriate infrastructure and expertise to provide turnkey regenerative orthopedics are wise to become "centers of excellence." However, they often lack the business network or contractual expertise to negotiate agreements with large employers. We're looking for a group of MBA students to study this model, expand upon it, and ideally position a small but talented orthopedic group to become competitive in a new type of cost model that keeps medicine profitable and also produces significantly lower cost burden for corporations looking to lower their healthcare spend. HOST VENUE ADDRESS 1755 Hwy 34 E, Ste 2200, Newnan, GA 30265. REQUIRED PREREQUISITES If successful, what will the students learn? They will be able to consult or pursue a full time career for either healthcare companies or large corporate entities who are looking to cut healthcare costs and improve outcomes in a value based care economy. This a niche part of the field poised to explode given the staggering amount of market disruption on the horizon in healthcare. The current system if bound to fail, and innovative market leaders will continue to seek out cost saving measures by direct contracting for care and cutting out insurers. Any background in Human Resources and/or Employee Benefits, Contracts would be helpful LEARNING OBJECTIVES Obtain an understanding for total expenditures of companies (minimum size 400 employees) that are dedicated to healthcare and their annual estimated increase Establish a strategy for healthcare providers to expand their business network and negotiate favorably with larger organizations Gain insight into how healthcare pricing and costs can be reduced whether services are performed in a hospital vs ambulatory surgery center vs office Develop a basic understanding of how the emerging market of Orthobiologics (PRP/stem cell) fit in the current regulatory landscape and how they can help avoid unnecessary surgical procedures Learn what elements of healthcare organization need to be in place for a corporation to partner with in order to establish "centers of excellence," what infrastructure is necessary to vertically integrate to control costs, and what components of a well negotiated direct care contract would entail Provide a model for how lean small to middle sized groups can be competitive with larger academic centers when it comes to market differentiation and engaging in a innovative model that can disrupt the complex and changing compliance and regulatory landscape

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