Diversification With Braided Funding

Increasingly, health care executives view diversification as critical to their future performance and growth. And more than 70% are pursuing diversification strategies. This view is driven by declining operating income and steadily declining margins (see US Health Systems: Diversify To Thrive). The goal of diversification efforts is to generate cash flow and create value and capabilities for core service line operations (see Taking The Hike To Sustainability and Growth = Financial Sustainability).

Diversification options fall into a few strategic categories (from new service lines and/or new customer groups to expanding revenues for current services). In our recent OPEN MINDS Executive . . .