Case Studies

Major Health Plan Optimizes Care Management Strategies

A confluence of events (regulatory, structural, competitive) has increased pressure on the fundamental economics of many health plans. Under this margin pressure, health plans often view effective care management as a critical lever in ensuring a sustainable economic model. A leading regional health plan engaged L.E.K. to conduct a comprehensive review of their care management and medical management functions in order to identify opportunities for optimization and improvement.

Leading Managed Care Organization Develops a Health Plan for Dual Eligibles

“Dual eligibles” receive both Medicare and Medicaid benefits by virtue of their age or disability and low income. Given the high cost of caring for dual eligibles and their complex needs, the federal government and several state governments have collaborated with private payers and providers to develop innovative managed care programs to more effectively manage dual eligibles’ healthcare needs, increase quality, improve outcomes, and reduce healthcare costs. Against this backdrop, a well-respected health plan with experience in Medicare, but new to Medicaid, engaged L.E.K. to support them in developing a managed care offering for dual eligibles in response to a request for application (RFA) from the state Medicaid agency and Center for Medicare and Medicaid Studies (CMS).

Major Benefit Consultancy Develops Private Health Insurance Exchange Strategic and Business Plan

Healthcare reform and its various side-effects dramatically re-shape an employer group’s incentives and options when considering health insurance for its employees. Given this environment, one of the nation’s largest benefit consultancies engaged L.E.K. to independently analyze the nature and magnitude of the private health insurance exchange opportunit

Commercial Due Diligence and Growth Assessment

A leading European private equity firm was evaluating the potential acquisition of a high performing global manufacturer of ceramics for the medical, automotive, industrial and electronic sectors. As part of its decision-making process, the firm engaged L.E.K. to assess the commercial growth prospects and the positioning of the potential target and provide critical commercial insight to the investment team.

Small Specialty Pharmaceutical Company Monetizes Its Stake in Two Recently Launched Drugs

One small specialty pharmaceutical company was entitled to royalty streams from its commercial partners for two products developed through its proprietary technology platforms. The company enlisted L.E.K. Consulting to help it assess the commercial potential of the two products.

Non-Profit Organization Monetizes Investment in Game-Changing Drug Therapy

A leading non-profit organization provided significant financial, scientific and clinical support to bring a new disease-modifying therapy to the market – the product represented a dramatic improvement over the previous standard of care and was the first to treat the underlying disease rather than just address the symptoms of the disease. The organization engaged L.E.K. Consulting to help it assess the commercial potential of its product and understand how it could generate value by monetizing its future royalty stream.

Product Portfolio Optimization for a Plastic Containers Manufacturer

The client is a leading U.S. manufacturer of plastic horticultural containers. The client has grown in recent years, resulting in a product portfolio that consisted of more than 20,000 SKUs produced in two plants. Despite historical efforts to reduce costs, the client had not been able to earn its cost of capital. Retail distribution pressures, industry over-supply and varied weather seasons all contributed to underperformance. The client sought to implement a cost reduction plan to ensure that it earned its cost of capital by reducing manufacturing overhead and indirect plant costs through simplifying its product line and rationalizing its SKUs.

Global Supply Chain Strategy for a Market-Leading Paint Systems Supplier

The client is a global manufacturer serving North America, Europe, Asia and South America. Historically, the company’s manufacturing operations were primarily based in North America and Europe, but it shifted some manufacturing capacity to emerging markets over time. The company believed it was losing or had lost its competitive advantages on cost and design while falling far behind on inventory management, sourcing capabilities and in-house manufacturing know-how. 

Turnaround Strategy for an Aluminum Cable Division

The client, a leading provider of aluminum cable and management, believes this business is underperforming. The client is looking for sustainable opportunities to drive top-line revenue growth and increase plant capacity utilization.

Market Assessment for a New Bio-Product

The client is a diversified industrial company with a division focused on developing and commercializing renewable feedstocks and hydrocarbon substitutes. The client identified hundreds of end-use applications for these technologies which appeared to have commercial merit, but needs help understanding the true commercial opportunity associated with these applications.