The Client
A medium-sized private hospital in Lebanon established in the 1940’s.

Main challenges

• Intensifying competition
• Deteriorating spending power of the customer base
• Deteriorating financial situation of public health insurance schemes, leading to delays in collection

Approach
CDS undertook a comprehensive 18-month strategy and change management program. This program covered all aspects of the client’s activity, and involved working closely with the client’s management and staff. It also included a comprehensive study by CDS of the Lebanese health care sector.

Impact: selected results

• Establishment of a focus strategy, allowing the hospital to successfully differentiate its offering from competition while improving its operating results
• Institutionalization at all levels

The client says …
The first thing CDS did was to help us develop a mission statement and define strategic directions for our institution. This involved clarifying our desired market positioning and determining a strategic framework for the development program we needed.

CDS also performed a thorough management accounting analysis, which helped our institution understand its real costs and break-even points, even for routine activities such as laboratory examinations; this exercise allowed us to better manage our portfolio of medical and non-medical services.

CDS consultants then audited our managerial and operational activities, analyzing the tasks performed at the hospital, its policies, work procedures, organization, etc. Along with the board of directors and key managers, CDS next established a new operating structure, new procedures, and a new organization.

At this point, our contract with CDS was reviewed and we asked them to implement the new structure and organization, and to develop a marketing plan to promote the hospital.

Our hospital is now fully operational and well on the way to achieving its goals. Occupancy rates often approach 100 percent and since the hospital has more than exceeded its global break-even level, it generates a financial surplus from operations.

Altogether, CDS spent about 18 months at our institution, and today we still solicit their advice. CDS' input into our institution’s development program and its assistance in starting the new phases of the hospital have been invaluable. I thank CDS and its consultants wholeheartedly, not only for their technical help and competent advice, but also for their drive and the heart they put into dealing with our institution.

Compared with our other financial investments in our hospital, which exceeded US$10 million, and in terms of impact and return, CDS consulting fees are the best investment we made.

Chairman