Health care reform has thrust many
industry stakeholders into survival mode. With the Patient Protection and
Affordable Care Act (PPACA) in place as an enabling foundation, “new
rules” are set to be written. And it will be a harsh set of rules indeed – minimum
loss ratios, elimination of risk selection tools, benefit plan grandfathering, strict
rate management, government run benefit exchanges, and for Medicare plans,
reduced payments. And add to the mix a cadillac plan tax, insurance company
assessments, and yes, even a tanning tax.
Predictions are running rampant
about mass product-line exits, reduced competition due to consolidation, and
distribution channel collapse. Will these
new regulations be the demise of health insurance industry and its stakeholders
or, will change create opportunity?
Or put another way….can entrepreneurial
spirit triumph over bureaucracy?
No one has a crystal ball but
history shows us that success in transformative, threatened markets requires an
ability to think and plan strategically: anticipate and absorb change, generate
disruptive ideas, and act with deliberate, sequenced speed. It’s the way entrepreneurs manage through obstacles
and capture opportunity.
From mega health insurance companies
to small brokerage agencies, the process begins when leaders seek answers to
tough questions. It means lasering-in on an organization's "reason for
being" and then expanding outward to scrutinize core competencies, identify
comparative market advantages, dissect customer perceptions, and determine strategic
sustainability. Use this three-step approach:
BASELINE –
Readiness gauge of where you stand today and what’s needs to be retooled in
order to deal with shifting markets and exploit new opportunities.
TOMORROW – Scenarios
and options for extending your company’s “reason for being” in a reformed
market landscape. This is the “vision
thing” that serves as the lifeblood of every entrepreneur.
ROADMAP – Select
and prioritize specific, tangible opportunities; design a structured approach
to optimize results, and; formulate an actionable, measurable business plan.
This introspective approach will
undoubtedly call into question your most basic operating assumptions. It will
challenge institutional bias and force debate around longstanding approaches to
your markets. That’s OK. It will also yield a renewed
focus on where your company needs to be in the future and lay the groundwork
for navigating how to get there.
The objective is to put
in motion a Health Care Reform change management process that fosters informed
judgments. It will assist you to see the futurity of today’s decisions. The
result will prove that entrepreneurship trumps bureaucracy.
