Health

FTSE250: turnaround of £¼ billion turnover health division

The Challenge

Loss-making Health division of a large outsourced services company

Need for a financial turnaround to return to profitability within 12 months, under the constraints Covid and increasing customer demands

Unclear longer-term business unit strategy

New market-facing propositions and areas for future growth

This FTSE250 client’s Health division had lost competitiveness in a challenging market with inefficiencies in operational practices and contract wins with very low-margins. With revenues around £¼bn, the newly appointed managing director engaged Arca Blanca to review the operating model. The business needed to restore profitability quickly while also repositioning for sustainable growth; and the new MD sought to establish credibility and a new direction.

The Results

A strategic case for future growth and competitiveness

A rapid turnaround plan to move from £3m loss to £5m annual profits

Clear, actionable insight on improving performance

A new operating model, with an insight-hub for better decision-making

8 weeks

to achieve a live web-hosted capability

Arca Blanca designed a new operating model that drove efficiency and effectiveness in winning new business, unlocking value in new contracts and manage the day-to-day business. We did this working at high tempo, parallel tracking financial analyses, high level operating model options, market assessment, and operational reviews. A joint team was formed with division leaders and their delegates, using an agile sprint-based approach to develop options and agree the way forward.

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Arca Blanca delivered a rapid data proof of concept project into the UK medical drug market. This showed how to deliver an automated, optimised set of drug lifetime management tools, and how to generate a paid-for “insight as a service” revenue stream. It also laid bare the dramatic variations in access to healthcare across the UK.

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