Scenario Planning to Engage a Board
Client/Profile
A three-hospital integrated health system in a competitive, Mid-Atlantic market
Challenge/Situation
To engage the system’s board in a discussion of potential significant changes in health delivery and finance, and develop organizational strategic direction through scenario planning.
Process
Veralon collaborated with senior management to facilitate a strategic planning process for the Board, focused on positioning the health system for success under several possible market scenarios. To create a foundation for planning, Veralon encouraged the health system to identify its current position in several areas:
- Health reform and payment trends
- Physician alignment
- Service line development
- Mergers/acquisitions and insurance partnerships
- Financial capability
Results
Veralon worked with senior management to clarify four scenarios (see graphic) that formed the basis of potential futures for the market and, eventually, potential strategies for the health system.
The scenarios provided an effective framework to help Board members consider potential market shifts over ten years.
Participants identified key steps required for success under each scenario, concluding with a discussion of steps that would be pursued under all scenarios. After the retreat, leadership summarized key priorities and action items to be pursued by the health system immediately, identified indicators to monitor, and agreed on trigger points for shifting future strategy.