JFF Consulting Group 1

SANO MEDICAL GROUPStrategic SolutionsJFF Consulting Group

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Table of Contents

Meet Our Team

Project Overview

Gap Analysis

Board Recommendations

Short Term Strategic Solutions

Implementation & Long Term Impacts

Risks and Risk Mitigation

Evaluations

Q&A

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Meet Our Team

John LeighSophomore

Finance

Yu-Yen Lee (Jordan)Junior

Finance & BIS

Alex FuchsJunior

Finance & Accounting

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Project Overview Sano Medical Group (Sano) is one of the leading medical groups in the southwestern United States.

Company Overview Our Role

• Operations across seven cities• Employs 5,400 physicians (PCPs)• 3.62 million patients • $1.026 B in net revenue and $131

M retained earnings in FY14• 20% drop in earnings since FY10

• Create greater value and ensure sustainability

• Introduce new technology and operating models

• Increase Sano’s market share in the industry

Talent Acquisition

Find the right competencies and

skills for future physicians

Talent Management

Accelerate leadership,

development, and behaviors

Operating Model

Optimize organizational

effectiveness and ensure efficiency

Total Rewards

Deliver effective rewards and

incentives

Effective Service Delivery for Sano Medical Group

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Project Overview Industry Trends

• Increasing health insurance premiums

• Affordable Care Act (ACA) potentially harming markets competitiveness

• Heavier reliance of technology – increases efficiency of care

• Greater pressure on physicians as Baby-Boomers retire

• Beginning implementation of home health care services

J

Key Findings

Increasing physicians and decreasing doctors

Increase demand, decrease supply in physicians

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Project OverviewSano’s current model is physician centric and primary care driven

Inefficient cost structure Majority of physicians leave due to burnout

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Gap Analysis Sano’s current state and end goal

Current State

Current State

End Goal

• Inefficient talent management and talent acquisition

• Technological inefficiencies & breaches

• Poor work satisfaction & compensation

• Solid firm identity • Attract new talent• Improve talent management and

learning & development • Employ efficient operating systems • Increase incentives

Retained Earnings

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Board Recommendations

CSOSilus Nugent

Joint Venture with Schools

● Less PCPs lost to hospitals

● Loss of identity and independence

● Higher retention rate● Higher service quality

CFOClaudia Summers

Increase Job Satisfaction

● Potentially higher wage expense

CMOEileen Baker

● Higher morale and incentives

● Innovation

CapEx + Make PCPs Shareholders

● Large initial outlay for capital expenditures

PROS

CONS

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Short Term Strategic SolutionsSano’s key stakeholders include patients, physicians, and the executive board.

Managing Talent

• Specialization and effective distribution of primary & value-adding activities

• Improve technology training for physicians

Coordinating With Schools

• Creating internship opportunities

• Creating apprenticeship or “residency”

Investments

• Capital expenditures in tele-health: Medidata

• Strengthen administration systems

• Bolster information security

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Tasks

• Technology Implementation

• Data Mining• Acquisitions• Effective

Management• High Margin

Services

Opportunities

• ↑Convenience & Efficiency

• ↑Service Quality & Research

• ↑ Expansion & Consolidation

• ↑ Profit & Specialization

Results

• Happy Doctors• Stronger

Marketing• Larger Network• Lower Admin. Cost• Higher Profits

Implementation & Long Term Impacts Sano’s key methods and metrics to successful implementation.

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Risks & Risk MitigationRisks Mitigation Strategy

Change in regulatory environment ACA/HIPAA Advisory service

Information breach Data loss/Image Use of third party cloud service

Increase competition Hospitals & other medical groups

Provide higher quality care &

retain key players

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Evaluations

Methods

Surveys to evaluate morale and satisfaction

Data mining/custome

r analytics

Key Metrics

Retention rate & recruitment

yield

Service & job satisfaction

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Q & A

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Thank you!