Scottsdale Healthcare serves the northeast valley of the greater Phoenix market through two comprehensive medical centers, in Osborne and Shea, and now a new hospital at Thompson Peak, north of Loop 101. In addition to a full spectrum of inpatient and specialty services, this not-for-profit offers outpatient surgery, home health, and a diverse range of community health education and outreach services. Facing critical expansion decisions, they turned to The Innova Group to help them anticipate and respond to market growth, and evaluate how opening a new facility would affect volumes at existing campuses.
Using a proprietary tiered analysis that is sensitive to market share fluctuations at a zip code level, Innova determined Scottsdale Healthcare’s market share and how it would change with a new facility. Innova also identified risk exposure due to debt limitations from a new facility and then performed a service line analysis to pinpoint which lines should be grown, which should be maintained, and which should be restricted–based on market volume, contribution margin, capital requirements, and organizational mission.
Innova’s final market plan served as Scottsdale Healthcare’s blueprint for expanding with limited risk exposure, and provided an implementable resourcing plan for their existing campuses in an ever-changing market.