Harvard Business Review

NOVEMBER 18, 2013

Historically, larger scale has offered hospital systems a number of advantages, including increased referral volumes, better access to capital, stronger pricing power, and classic cost economies. For instance, larger scale has enabled many hospital systems to lower their per-patient operating costs significantly.

Hospitality 9

Hospitality Scaling Revenue Fixed Costs 9

Harvard Business Review

NOVEMBER 15, 2018

hospitals and health systems experienced an average 39% reduction in their operating margins from 2015 to 2017. This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. Here are some examples of what will be required to change the operating culture: Contract rationalization.

Hospitality 14

Hospitality Manager Nonprofit Staffing 14

Harvard Business Review

FEBRUARY 6, 2018

For existing health care companies, the operative words in that mandate have been “health care”; for Amazon, the operative words likely are “service that needs to be delivered to a customer.” The absence of fixed costs for customers attracted small and innovative web developers.

Hospitality 15

Hospitality Operations Insurance Fixed Costs 15

Harvard Business Review

NOVEMBER 29, 2013

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

Revenue 9

Revenue Nonprofit Operations Hospitality 9

Harvard Business Review

NOVEMBER 6, 2013

Working under a fixed-cost ceiling was, of course, difficult. The constraints we operated within also required creativity, the formation of new partnerships, and an open-minded, outward-facing search for the best, most innovative models of care.

Hospitality 8

Hospitality Insurance Fixed Costs Accounts 8

Chief Executive

JULY 25, 2022

If I could pick the one thing that I would change in how executives lead companies by magically waving a wand, it would be the timeframe in which they operate—that you manage for the quarter century, not the quarter. And if we do that, we can’t help but grow revenues per fixed cost. How do you get clear on what your flywheel is?

Balance Sheet 98

Balance Sheet Assets Engineering Operations 98

Harvard Business Review

MAY 13, 2016

It doesn’t have one center of organization and imagination looking out at the far horizon to inspire and guide all of the component parts to get to a place together that none operating independently could ever get to on its own. Imagine eliminating all of the redundancies in fixed costs.

Nonprofit 13

Nonprofit Diversity Fixed Costs Operations 13