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Situation
A large network of outpatient imaging centers sought to improve its operational efficiency and overall profitability. Parthenon worked with the company’s management team to address the following questions:
- What is the optimal center footprint to drive profitable growth in an otherwise flat market?
- What improvements to the cost structure would help restore center profitability?
- What marketing initiatives were most effective at driving scan volume?
Parthenon Action
- Analyzed local market share and competitive dynamics to determine optimal center locations
- Benchmarked staffing levels and scan throughput to assess operational efficiency
- Surveyed site managers to determine the most effective marketing initiatives
- Worked with management team to develop and implement 180-day action plan to drive profit improvement
Outcome
- Client divested several facilities in sub-scale or unattractive markets
- Client standardized staffing ratios across facilities and drove productivity metrics to exceed industry benchmarks
- On-track to deliver a 50% improvement in operating profit