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Medium Revenue Growth

GGC Health

#Healthcare
ProHub Comment

This case tests structured problem-solving around revenue growth through two levers: geographic expansion and product mix enhancement. The candidate must perform quantitative analysis comparing expansion opportunities and then recognize that a single new facility is insufficient, requiring them to independently identify supplementary revenue opportunities at existing locations.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Our client, GGC Health, operates eight Ambulatory Surgical Centers (ASC) on the east coast. GGC Health has consistently been a profitable organization, but over the past two years, their ASCs’ cumulative revenues have been flat at $400 million/year. The CEO of GGC Health is concerned about this and has hired your firm to increase revenues by 15%.

Clarifying Information

  1. ASCs are modern health care facilities focused on providing same-day surgical care, including diagnostic and preventive procedures.
  2. ASCs are seen as a more convenient alternative to hospital-based outpatient procedures.
  3. Physicians can perform surgeries at hospitals or ASCs.
  4. Physicians generally dictate where the surgery is performed.
  5. Timeline: ASAP
  6. Candidate should recognize that target revenue is $60M (15% * 400M)
  7. Business Model: ASC revenue is equal to the number of procedures performed in the facility by the expected reimbursement per procedure.