Market opportunity: Consider this: To expand or not?

Q. How do I determine whether I should expand my business?
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Tuesday, October 30, 2018

A. As a provider you undoubtedly face many challenges, whether from changes in reimbursement, staffing, operations, or competitive pressures. With all these potential focus areas, it’s hard to determine where to allocate your limited resources. For some, growth and diversification is the answer.
Why? This is ultimately the question you need to ask yourself. Why do I want to expand, and why is it important? When working with a provider partner, the biggest question we ask is, how many of your patients are talking to other providers? Whether you’re servicing a specific line or geographic region, it’s possible that many of your patients are being serviced by multiple partners.
While the complexity of each provider’s journey can vary, we recommend:
• Understanding your market and opportunity: What are my reimbursements in the market today, residual business opportunities, and market size?
• Building your team: Who is your partner to help make relationships and navigate the category—supplier connections, market knowledge and minimized expenses.
• Understanding your investment: What is the startup cost—therapist, additional site, reimbursements and equipment?
• Initiating a plan of attack: What’s the plan to go after this market—salesforces, marketing and commercial plans?
• Checking and adjusting: What does winning look like—determine key performance indicators (KPIs).
Your success or failure is based on your plan, resources and team. Choosing the right partner that is experienced in category expansion can help you navigate this process is the key to success. hme 
Rob Schlissberg is vice president and general manager, Independence Medical & Home Healthcare Solutions at Cardinal Health. Reach him at Rob.Schlissberg@indemed.com.