Priming for Growth

How to overcome the major barriers to achieving outsized revenue growth

At a glance

Successfully growing market share is a critical component of a sustainable margin management strategy, but hospitals and health systems across the country are struggling to win the growth they need. This research report explores the growth strategies necessary for success, pinpoints 18 underlying internal barriers that inhibit growth, and features case studies of organizations overcoming these barriers to achieve outsized revenue growth.

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The financial performance of hospitals and health systems has reached an all-time low, and margin pressures continue to intensify over time. Organizations are bombarded with revenue threats, including direct pricing cuts, new payment models, and the continued outmigration of care. Despite these market forces, achieving steady revenue growth is mandatory for long-term financial sustainability. Fortunately, progressive organizations are successfully meeting the revenue mandate.

In early 2019, we published Re-igniting the Growth Engine, a three-part series profiling best-in-class approaches to reducing avoidable revenue erosion, winning an increased share of lucrative patient volumes, and exploring opportunities to diversify into new revenue streams.

Building on that research, we took a deeper look at that second theme—growing share—and posed two critical questions: Why are hospitals and health systems struggling to win the growth they need? And how can leaders overcome the obstacles to growth—especially the internal barriers that all too often inhibit growth? Answering these questions is the key to achieving margin-sustaining revenue growth.

This research report explores the growth strategies necessary for success, pinpoints 18 underlying internal barriers that inhibit growth, and features case studies of organizations overcoming these barriers to achieve outsized revenue growth.

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