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Managing your margin after reform: the strategic margin plan
1Navigant Consulting, Inc., Chicago, USA. mnugent@navigantconsulting.com
Abstract:
CFOs should develop a strategic margin plan to maintain their margins and bond ratings post-reform, following four key steps: Project the expected revenue gap due to payment reform and competition. Benchmark "Level 1, 2, and 3" unit cost and utilization savings opportunities. Implement short- and long-term operational and financial management tactics to close the margin gap. Integrate margin management tactics with clinical delivery improvement plans to ensure that patients benefit.
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