Private Health Insurer

Strategic Review of the Private Healthcare Market in Ireland

Background

The Board and senior management of the organisation felt that it was timely and important to attempt to assess how the private healthcare market was likely to develop in Ireland over the medium term. The assessment was prompted in part by the very significant reforms set out for the public healthcare system, which were likely to affect private healthcare also. Alongside these, a number of other economic, social and technical forces were likely to shape the market in the years ahead. The strategic review was required to take a broad perspective so as to allow the Board and senior management to take the widest possible strategic look at the issues involved.

Objectives

Prospectus was commissioned to assess how the private healthcare market is likely to develop in the short to medium term. The objective of the review was to develop a "big picture" appraisal of the likely market evolution.

Approach Taken

The methodology used in the strategic review took into account the multi-factorial nature of the healthcare environment, the need to reflect perspectives beyond those of the health insurance sector and the non-quantifiable features of issues such as public policy trends. The analytical approach used in the review was to examine and assess the impact of the major forces for change in the private healthcare market. The forces for change were grouped under the following themes:

• Suppliers of private healthcare services
• Government
• Competitors in the private health insurance market
• Customers
• Evolving technology and emerging healthcare demand

The methodology consisted of a combination of desk research, utilising both public domain and privately sourced material, and a wide range of expert interviews covering senior management, officials and advisors in the Department of Health and Children, regulatory agencies, suppliers, developers, bankers and other industry experts. Over forty interviews were conducted to obtain views and insights from a wide range of industry players and experts and to test and refine Prospectus's views on developments and changes occurring in the healthcare market.

Outcomes

The final report provided the Board and senior management with a comprehensive and up-to-date assessment of key developments and trends in private healthcare. It identified and assessed key opportunities and threats and suggested responses that the organisation should consider.

The purpose of the final report was to assist in the development of an organisational strategy. Following completion of the report, Prospectus was invited to attend a Board and senior management strategy session to discuss and tease out the key messages and implications of the evolving private healthcare market.