Project Description

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Transitioning a Traditional Campus with Gentrification

The Problem

An urban-based facility in a densely-populated metro area had been struggling with declining inpatient volume and payor mix for some time. This, coupled with an aging infrastructure, challenged facility leaders to make bold decisions about what course of action should be taken to preserve what remaining revenue they had and could attract over the long-term horizon. Catalyst was engaged to outline the options and estimate the cost/benefit of each scenario.

The Approach

Validating the market opportunity and the magnitude of the infrastructure issues were the first order of business. This began the task of sizing what it would take to maintain and grow inpatient volumes. With the prospect of a continuously shrinking inpatient base, a scaled-down replacement facility was evaluated along with a medical village concept. Both of these options could be located on the existing campus property. The Catalyst team refined multiple scenarios all of which outlined the market opportunity, programming, and cost implications.

The Solution

The facility leadership team, now armed with robust analytics and real-world construction estimates, were guided through an evaluation process that would allow them to develop a recommended course of action to their corporate leaders. Since any of the proposed options would have significant financial implications, a solution that balanced the mission and values of the system along with financial stewardship was selected. The Catalyst team continued to support leadership by highlighting the thought-process and approach at various stakeholder meetings.

Project Details


East Coast


Suburban Medical Center


Medical Village Study

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