Value-Based Care Pivot

Client Overview

A healthcare technology company providing clinical decision support and analytics tools for healthcare providers. With 100 employees and $15M in ARR, they recognized the need to adapt their business model from fee-for-service to value-based care alignment.

The Challenge

As the healthcare industry increasingly shifted toward value-based care models, the company's product suite—designed primarily for fee-for-service environments—was becoming less aligned with market needs. The leadership team recognized the strategic imperative to pivot but struggled with execution while maintaining current business performance.

Key issues included:

Product capabilities primarily optimized for fee-for-service workflows
Sales team experienced in selling efficiency rather than outcomes
Limited experience with risk-bearing contract structures
Engineering resources fully consumed with current product maintenance
Unclear market positioning during transition period
Revenue risk during business model transformation

Our Approach

We deployed our Strategic Execution Team focused on business model transformation:

Market Assessment:
- Conducted comprehensive analysis of value-based care market dynamics
- Mapped customer journey from fee-for-service to value-based models
- Assessed product capability gaps against value-based requirements
- Evaluated competitive positioning in the evolving market
Transformation Strategy:
- Developed phased capability roadmap aligned with market evolution
- Created dual business model operating framework
- Designed risk-based pricing models for value alignment
- Established metrics framework for transformation progress
Implementation:
- Deployed cross-functional transformation team
- Implemented agile development methodology for rapid adaptation
- Created value-based messaging and sales enablement
- Developed customer migration strategy and incentives
Measurement and Optimization:
- Established leading indicators for transformation success
- Created regular readiness assessment process
- Implemented executive dashboard for transformation metrics
- Developed continuous market feedback mechanism

The Results

Within 12 months of implementation, the company achieved:

Value-based contracts grew from 15% to 58% of total revenue
Margins improved by 32% on value-based contracts
Customer retention increased to 96% for value-based customers
Product roadmap alignment with value-based care increased by 85%
Sales team confidence in value-based selling improved by 74%
Market perception as value-based care leader improved by 63% in customer surveys

The strategic pivot enabled the company to successfully transition their business model while maintaining growth, positioning them for long-term leadership in the value-based care technology market.

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