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Medium Growth Strategy Customer Experience Profitability

Healthy Spending

#Healthcare
ProHub Comment

This case tests the candidate's ability to connect customer satisfaction metrics (NPS) to business outcomes (revenue), calculate efficiency ratios under budget constraints, and synthesize data into a prioritized recommendation. It requires both quantitative rigor and strategic thinking to balance multiple competing initiatives within a constrained budget.

Estimated Time 25 minutes
Difficulty Medium
Source Duke
10 / 100
The new CEO of HealthCorp, a not-for-profit health insurer, has recently engaged you to help her solve a budding problem. Over the last 3 years, HealthCorp has experienced revenue erosion while peers are experiencing both top and bottom line growth. HealthCorp would like you to help diagnose the cause of this poor performance, and eventually, help formulate a course of action to improve revenue by $1B in the next two years.

Clarifying Information

  1. This is a growth case centered around customer experience
  2. General industry info: health insurers negotiate prices with physicians and hospital networks based system by system negotiations. Prices are typically related to Medicare reimbursements
  3. HealthCorp does not have a material number of Medicare or Medicaid patients
  4. The provider market with which HealthCorp works has undergone rapid consolidation within the last 5 years
  5. HealthCorp has seen a large, for-profit disrupter enter the market in the last 2 years
Mock Interview
Interviewer

The new CEO of HealthCorp, a not-for-profit health insurer, has recently engaged you to help her solve a budding problem. Over the last 3 years, HealthCorp has experienced revenue erosion while peers are experiencing both top and bottom line growth. HealthCorp would like you to help diagnose the cause of this poor performance, and eventually, help formulate a course of action to improve revenue by $1B in the next two years.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

HealthCorp, a not-for-profit health insurer experiencing revenue decline while competitors grow, needs a strategy to generate $1B in additional revenue within two years. The case reveals that declining NPS (customer satisfaction) correlates with revenue loss at $200M per NPS point. Candidates must identify initiatives that improve NPS by 5 points while spending only $10M, ultimately recommending a portfolio combining a mobile app, provider partnerships, and customer journey mapping.

Key Insights:

  1. Identify the correlation between NPS decline and revenue erosion—each NPS point equals $200M in revenue
  2. Calculate efficiency metrics (NPS gain per dollar spent) to prioritize initiatives under budget constraints
  3. Recognize timeline constraints: the Redesign Claims Process project takes 30 months and doesn’t fit the 24-month deadline despite high NPS impact
  4. Balance quantitative optimization (efficiency ratios) with strategic fit (customer experience focus)
  5. Synthesize findings into clear recommendations with risk acknowledgment and next steps